1045With the continuous development of the global e-commerce market, TikTok is increasing its investment in the Southeast Asian market, especially Vietnam. Recently,TikTok announced it will invest $1 million to support small and medium-sized enterprises (SMEs) in Vietnam, helping them develop cross-border e-commerce businesses. This initiative not only demonstrates TikTok's emphasis on the Vietnamese market, but also brings new opportunities to local SMEs.
Seizing the Growth Potential of Vietnam's E-commerce Market
Vietnam, as one of the fastest-growing e-commerce markets in Southeast Asia, has enormous growth potential. Data shows that Vietnam's e-commerce sales are expected to reach $20.5 billion by the end of 2023, with an e-commerce growth rate of 12.5%, ranking eighth in the global e-commerce growth rankings. In addition, the number of online shoppers in Vietnam is expected to reach 80 million by 2025, with most users active on mobile platforms.
TikTok has recognized this market potential and has been increasing its investment in Vietnam in recent years. As early as last year, TikTok announcedan investment of $12.2 million to support more than 120,000 SMEs in Southeast Asia, providingcash grants, ad credits, and training. This $1 million ad credit support program launched in Vietnam is part of this major investment, aiming to further assist the development of Vietnamese SMEs.
TikTok's Support Policies
The support policies launched by TikTok this time mainly include the following aspects:
Providing Ad Subsidies: Eligible SMEs can receive advertising fee reductions or coupons, helping them reach target customers at lower costs. This will greatly reduce marketing costs for SMEs and enhance their competitiveness.
Traffic Support: TikTok will provide SMEs with high-quality traffic resources to help their stores gain more exposure opportunities. By increasing exposure, SMEs will be able to better attract consumers and boost sales.
Training Support: TikTok will regularly hold training courses and seminars to help SMEs learn cross-border e-commerce operation skills and understand the latest market trends. This will help businesses better adapt to market changes and improve operational efficiency.
The Rise of Social E-commerce
Social e-commerce is developing very strongly in Vietnam. In the first quarter of this year, Vietnamese online consumers watched an average of 13 hours of live commerce broadcasts per week, with 95% of consumers purchasing products through live streaming. Thanks to the popularity of social e-commerce, TikTok Shop has also performed very well in Vietnam. In the first quarter of this year, TikTok Shop's GMV (Gross Merchandise Value) reached VND 18.36 trillion, accounting for 23.2%, second only to Shopee.
TikTok's continued investment in the Vietnamese market highlights its determination to deeply cultivate the Southeast Asian market. With policy support, more Vietnamese SMEs will be able to leverage the TikTok platform to enter the global market and achieve greater success. As e-commerce and social e-commerce develop rapidly, TikTok Shop will continue to make efforts in the future, launching more initiatives to support sellers and optimize user services, further expanding its market share.
TikTok's success in the Vietnamese market is not only an important step in its global strategy, but also provides a successful example for SMEs in other countries and regions. In today's globalized world, the support of e-commerce platforms and the efforts of enterprises themselves will jointly promote the development of cross-border e-commerce and create more business opportunities.
