My mother is Vietnamese, so I spent a great deal of time in Vietnam visiting family. Eating on the floor is completely common there.
My view is that simplicity is the core reason. If you can eat comfortably on the floor, you can fit far more people into a living room to share a meal together without needing to invest in a large, space-consuming table.
It is also likely that this practice has deep historical roots across Asia, partly because many Asians tend to have naturally more flexible legs than their Western counterparts.
The vast majority of them myself included, being only 50% Asian are able to perform what is known as the Asian Squat: that particular seated position where the body crouches low but the buttocks never touch the ground.
One source notes that 100% of Asians can perform the Asian Squat, compared to just 13.9% of Americans and among those Americans, 9% had Asian ancestry.
Asians use this position constantly while sitting on chairs, while using the toilet, almost everywhere.
The same logic applies to sleeping on the floor. It is enormously practical during family gatherings: no need for numerous sofas or spare beds. A few large bamboo mats and some cushions are all that is required.
Edit: I am not suggesting Asians are in any way superior to Westerners I was simply noting something I had observed. After looking into it further, the ability to perform the Asian Squat appears to stem from the fact that Asians spend so much time sitting on the floor from an early age, which gradually lengthens the calf muscles and makes the position accessible.
In theory, anyone can develop this ability. Asians simply benefit from a lifetime of circumstance.