Vietnam e-commerce market to reach $24 bln value in 2025: NIQ exec

Vietnam’s digital economy in 2025 will attain a value of $43 billion, with e-commerce accounting for $24 billion, up 22% year-on-year, said Long Le, retailer lead at international consumer intelligence firm NIQ Vietnam.

Long was speaking at the “TikTok SMB Summit 2024 - Skyrocket Your Business” event held in Ho Chi Minh City on Friday.

Hung Huynh, country head, Tiktok SMB Vietnam, cited data from Vietnam’s General Statistics Office showing that over 90% of 900,000 registered businesses are small and medium enterprises (SMEs). "SMEs play a very important role in the economy and many of these are now doing business on the Tiktok platform," he said.

Tiktok was present in more than 100 countries, but Tiktok Shop has only appeared in about a dozen countries, including six in Southeast Asia. This indicates the importance of the platform for Southeast Asia in general and Vietnam in particular, Huynh added.

Online shopper profile

Long said typical online shoppers were around 31 years old, 73% were married and 70% were office workers.

A quarter of all online shoppers bought essential items, 21% bought fast food, and 19% made purchases because of product promotions.

As many as 94% of online shoppers placed their orders on their phones, with a small percentage using laptops or tablets.

Long said livestream events were the main growth driver of Tiktok this year. However, the market will change over time, so sellers on Tiktok need to pay attention and keep up with trends, he added.

$1 million in ad credits

Conference organizers said that TikTok has committed an advertising credit support package of up to $1 million for SMEs on the platform during the second half of 2024 (from July 2024 to end-December 2024).

The package is part of a $12.2 million investment for SMEs in Southeast Asia that TikTok had announced in mid-2023.

Besides, TikTok has said it will cooperate with the Steering Committee of the "Vietnamese people prioritize using Vietnamese goods" campaign alongside professional associations and local departments to provide support of $100–200 for each video promoting Vietnamese businesses and products.

In addition to advertising credits, TikTok plans a series of in-depth training programs to help improve digital transformation capacity and build brand identities for domestic sellers across the country, the conference heard.