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After a slew of issues in other parts of the world, TikTok said it tripled the merchant base and average sales on its app in Vietnam last year, Nikkei reported.
The surge is partly due to sales of items like VinFast motorcycles and Samsung phones, as Vietnamese shoppers become more comfortable with online shopping, a TikTok Vietnam representative said.
Vietnam was found to be one of the fastest-growing digital economies in the region by the 2023 e-conomy SEA report, with the country’s estimated gross merchandise value expected to jump by 31% from US$23 billion in 2022 to US$49 billion by 2025. The report cited “a booming ecommerce sector” as the driving force behind this growth.
For TikTok, Vietnam’s bigger appetite for online shopping means it has become a central revenue contributor for its business in Southeast Asia. However, representatives did not disclose official numbers.
As of early 2024, TikTok Shop users in Vietnam had reached 67 million. The Nikkei report noted that it is the country’s second-largest ecommerce site in terms of market share, ahead of Lazada but trailing Shopee.
The Nikkei report credited TikTok’s success to its decision to set up a physical office in Vietnam five years ago. In contrast, competitors like Facebook and YouTube still do not have a physical presence in the country.
Analysts have previously noted that TikTok is a serious threat to incumbents in Southeast Asia’s ecommerce sector. A Morgan Stanley analysis in August 2023 said that TikTok’s monthly active users had surpassed Shopee’s since March 2021.
In the US, however, TikTok is still facing a potential ban, with the Chinese government’s influence on the app being the biggest point of contention.
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