TikTok Shop in Vietnam: Is There Room for Foreign Brands in This Booming Market?

With a young, digitally-savvy population and skyrocketing e-commerce growth, Vietnam is a promising market for brands worldwide, and TikTok Shop is one of the latest and most dynamic channels to reach these consumers. As TikTok transitions from a purely entertainment platform to an engaging social commerce channel, foreign brands are eyeing Vietnam’s TikTok Shop as a potential goldmine. But is there truly room for growth, and what strategies are working for brands already on the platform? Here’s a data-driven look at Vietnam’s TikTok landscape, opportunities for foreign companies, and examples of brands that have successfully navigated this market.

1. Vietnam's TikTok User Base: A Foundation of Growth

‍Vietnam boasts one of the largest and fastest-growing TikTok user bases in Southeast Asia, with over 39 million users in 2024, according to the Digital 2024 Global Overview Report by We Are Social and Meltwater. This accounts for a substantial portion of Vietnam's 100 million population, with most users aged between 18 and 34, a demographic highly relevant to consumer-focused brands. Additionally, 30% of TikTok users in Vietnam have reportedly made purchases directly through the platform, highlighting its potential as a robust e-commerce channel.

This growth aligns with Vietnam’s broader digital transformation. The country’s e-commerce market is projected to expand from $23 billion in 2023 to $39 billion by 2025, as noted in the Vietnam E-commerce White Paper and supported by insights from The Investor. For foreign brands aiming to tap into Vietnam’s dynamic consumer market, TikTok’s blend of engaging content and integrated shopping features presents a unique opportunity.

2. TikTok Shop in Vietnam: Product Categories and High-Engagement Trends

Since TikTok Shop’s launch in Vietnam, user adoption has surged, particularly in categories like fashion, beauty, technology, and lifestyle. Brands across these sectors have seen significant sales increases by using TikTok Shop to reach Vietnamese audiences.

For example, Some By Mi, a popular Korean skincare brand, leveraged TikTok Shop’s reach by highlighting specific products like its acne treatment and brightening lines. Partnering with Vietnamese beauty influencers, Some By Mi saw a 400% increase in monthly sales through TikTok campaigns focused on livestream tutorials and product demos. By using TikTok-exclusive discount bundles, the brand resonated with budget-conscious Vietnamese consumers while maintaining its premium appeal.

Another successful player is Zara, which capitalized on the “try-on haul” trend to engage young Vietnamese fashion enthusiasts. In early 2023, Zara launched a campaign showcasing its Spring Collection, which quickly generated over 3 million views in a month. Zara’s approach of partnering with fashion influencers to create styling videos appealed to Vietnam’s youth, translating viewership directly into sales on TikTok Shop.

3. Why Vietnam’s E-commerce Market Is Perfect for TikTok Shop

Vietnam’s e-commerce growth has been exceptional, with the market set to nearly double by 2025. This growth is driven by a rapidly expanding middle class, high smartphone adoption (with 83% of the population owning smartphones), and increasing familiarity with online payment systems. TikTok Shop is well-positioned to take advantage of these trends with its social-commerce approach, turning social engagement into impulse-driven shopping.

One of TikTok Shop’s most engaging features is livestream shopping. Livestream shopping is expected to account for nearly 20% of TikTok Shop’s revenue in Vietnam by the end of 2024, and it’s become a powerful tool for both local and international brands. This format combines entertainment with sales, letting brands connect with consumers in real-time while answering questions and demonstrating products.

4. Challenges for Foreign Brands on TikTok Shop Vietnam

While the opportunities are promising, foreign brands face some notable challenges in Vietnam’s TikTok Shop space:

• Local Competition: Vietnamese brands such as An Phuoc Garment and Juno Shoes understand local tastes and pricing better, offering competitively priced products and frequent promotions. To compete, foreign brands need a clear value proposition, like product exclusivity or higher quality.
• Pricing Sensitivity: Vietnamese consumers are price-conscious, which gives local brands an edge in competitive pricing. Brands like H&M have adapted by launching TikTok-exclusive collections and creating bundle deals to enhance value perception for budget-focused buyers.
• Logistics and Compliance: Efficient delivery and smooth logistics are critical on TikTok Shop. Brands need local partnerships or fulfillment centers to ensure fast shipping, as delays can deter potential buyers. Additionally, foreign brands must comply with Vietnam’s tax, import, and advertising regulations. Many have found that working with local advisors and fulfillment services like GHTK or Viettel Post can help simplify logistics and regulatory navigation.

5. Opportunities for Foreign Brands: Strategies to Stand Out

Despite these challenges, foreign brands can leverage a few strategies to excel on TikTok Shop in Vietnam:

• Localization and Influencer Partnerships: To truly resonate with Vietnamese consumers, brands must tailor their content to the local language and culture. MAC Cosmetics, a cosmetics brand from Canada, launched a successful TikTok Shop campaign by partnering with Vietnamese beauty influencers who presented MAC’s lipstick and foundation lines in Vietnamese. This local touch contributed to MAC’s 200% increase in daily sales during peak campaign periods.

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• Livestreaming for Real-Time Engagement: Livestreaming has become a must-have engagement tool in Vietnam’s TikTok Shop market. MAC Cosmetics ran a series of makeup tutorials featuring popular Vietnamese beauty influencers and artists, allowing potential customers to ask questions and see the products in action. By offering exclusive promotions during these livestreams, MAC saw immediate sales spikes and greater brand loyalty.

Read more: Livestream Sales – A Savior or a Destroyer of Vietnamese Businesses?

• Exclusive or Premium Products: Vietnamese consumers are increasingly interested in premium international products, particularly in beauty and technology. Dyson is one example: the brand has gained traction by using TikTok to showcase its premium hair tools like the Airwrap and Supersonic dryer. Dyson’s “Airwrap Demo” campaign alone generated over 2 million views and established Dyson as a luxury option for Vietnamese consumers seeking high-quality beauty products.

Case Studies: Winning Strategies by Foreign Brands on TikTok Shop Vietnam

1. Kiehl’s Vietnam

Kiehl’s, an America-based brand, entered TikTok Shop in Vietnam with a full-funnel campaign, including 40 live streams over 30 days, supported by LIVE Shopping Ads and Video Shopping Ads. This approach was targeted toward Vietnam’s high preference for video-centric shopping experiences. The brand’s focus on educational, storytelling content combined with collaborations with beauty creators helped drive a spike in engagement and conversions. Within just a month of launch, Kiehl’s became the top premium beauty brand on TikTok Shop in Vietnam, setting a record in terms of Gross Merchandise Value (GMV).

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2. AFTERSHOCK PC

Singapore’s AFTERSHOCK PC took a novel approach to TikTok Shop, focusing on interactive livestreams and video content to attract Vietnamese PC enthusiasts. AFTERSHOCK’s live streams, which included product demonstrations and PC building tutorials, reached over 400,000 impressions and led to a 92% increase in views during peak sales seasons. The brand’s creative use of TikTok to directly engage with the tech-savvy audience in Vietnam shows how tech brands can leverage educational and experiential content to establish a presence in this competitive market.

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3. Innisfree

Innisfree, a Korean beauty brand, has capitalized on Vietnam's TikTok Shop success by leveraging its popularity among young Vietnamese consumers. Through collaborations with Vietnamese beauty influencers and “shoppertainment” techniques such as live-streamed product demos, Innisfree’s sales rose by 15% in Q2 2023, positioning it as one of the leading foreign beauty brands on TikTok Shop. This growth demonstrates that foreign brands can successfully penetrate the Vietnamese market with localized content and influencer partnerships.

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Conclusion: Is There Room for Foreign Brands? Absolutely yes!

The TikTok Shop market in Vietnam is packed with potential for foreign brands willing to navigate the market strategically. With a young and highly engaged user base, strong demand for quality international products, and opportunities in social commerce, Vietnam’s market is fertile ground for brands that can localize and build connections with Vietnamese consumers.Feedforce Vietnam has successfully tapped into this potential by leveraging TikTok Shop as part of its marketing strategies. Through TikTok Shop, we demonstrates the power of consistent, localized content paired with influencer collaborations to engage Vietnamese audiences effectively. Their campaigns prioritize relatable storytelling and competitive pricing, showing that aligning with local preferences significantly enhances conversion rates.

Success for foreign brands hinges on a few key strategies: focusing on localized content, competitive pricing, and influencer-led livestream campaigns. By taking these approaches, foreign brands can not only enter but also thrive in Vietnam’s competitive and fast-growing TikTok Shop space.

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