TikTok shop thrives in Vietnam, tripled merchant base and average sales

Despite encountering difficulties in other regions, TikTok Shop has emerged as a major player in Vietnam's e-commerce landscape. According to a TikTok Vietnam representative, the platform tripled its merchant base and average sales in Vietnam last year.

This growth is attributed in part to a surge in online shopping among Vietnamese consumers, reflected in their increasing comfort in purchasing items like VinFast motorcycles and Samsung phones through the platform. Vietnam's digital economy is also a key factor. A recent report identified Vietnam as one of the fastest-growing digital economies in Southeast Asia, with its gross merchandise value expected to jump by 31% to reach US$49 billion by 2025. The report cites the country's "booming e-commerce sector" as the driving force behind this growth.

For TikTok, Vietnam's booming online shopping scene translates to significant revenue. While the company did not disclose specific figures, Vietnam has become a central contributor to TikTok's revenue stream in Southeast Asia.

As of early 2024, TikTok Shop boasts a user base of 67 million in Vietnam. TikTok Shop is the country's second-largest e-commerce platform in terms of market share, surpassing Lazada but trailing Shopee. The report credits TikTok's success to its strategic decision to establish a physical office in Vietnam five years ago, a move that competitors like Facebook and YouTube have yet to replicate in the country.

Analysts have long recognized TikTok as a serious threat to established players in Southeast Asia's e-commerce sector. An August 2023 analysis by Morgan Stanley revealed that TikTok's monthly active users have surpassed those of Shopee since March 2021.