Vietnam’s e-commerce market will reach USD 24 billion in 2025: NIQ executive director

Vietnam’s digital economy is expected to reach $43 billion in 2025, with e-commerce expected to be worth $24 billion, up 22% year-on-year, said Long Le, retail leader at global 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 of Tiktok SMB Vietnam, cited data from the Vietnam General Office of Statistics showing that more than 90% of the 900,000 registered companies are small and medium-sized enterprises (SMEs). “SMEs play a very important role in the economy, and many of them are now doing business on the Tiktok platform,” he said.

Tiktok was present in more than 100 countries, but Tiktok Shop only appeared in 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 Buyer Profile

Long said the typical age of online shoppers is 31, 73% are married and 70% are office workers.

A quarter of all online shoppers bought essentials, 21% bought fast food, and 19% shopped because of product promotions.

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

Long said livestreamed events were the main driver of Tiktok’s growth 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 advertising

The conference organizers announced that TikTok has committed to providing support in the form of a package of advertising credits worth up to $1 million for small and medium-sized businesses on the platform in the second half of 2024 (from July 2024 to the end of December 2024).

The package is part of a $12.2 million investment in small and medium-sized enterprises in Southeast Asia that TikTok announced in mid-2023.

In addition, TikTok said it will work with the steering committee of the “Vietnamese People Prioritize Using Vietnamese Goods” campaign, as well as professional associations and local departments, to provide support of $100 to $200 for each video promoting Vietnamese companies and products.

In addition to advertising credits, TikTok plans a series of in-depth training programs to help expand digital transformation potential and build brand identity for national sellers across the country, the conference learned.