- Social commerce is the use of social media platforms to sell products or services online. It is a popular and growing trend in Vietnam, especially among young and rural consumers who prefer the convenience, interactivity and trust of social networks over traditional e-commerce websites.
- Social commerce industry in Vietnam is expected to grow by 66.0% on annual basis to reach US$2, 153.6 million in 20221. The industry has recorded strong growth over the last four quarters, supported by increased e-commerce penetration and rising social commerce adoption in small cities.
- Facebook is the leading social commerce platform in Vietnam, followed by Instagram and Zalo. Facebook accounted for 60% of online fast-moving consumer goods (FMCG) sales in rural areas in 20212. Other platforms such as TikTok, Shopee Live and Tiki Live are also gaining popularity for commercial live streaming and influencer marketing.
- The most popular product categories for social commerce in Vietnam are fashion, beauty, electronics and home appliances. These categories account for more than 80% of the total social commerce market value in 20221. Other emerging categories include food and beverages, health and wellness, and travel and tourism.
- The main drivers of social commerce in Vietnam are the high social media usage, the low trust in online payment systems, the preference for personal recommendations and reviews, and the lack of physical retail infrastructure in rural areas. The main challenges are the lack of quality control, the risk of fraud and scams, the low customer loyalty and retention, and the regulatory uncertainty.
- Social commerce is expected to account for 18.5% of the total e-commerce market value in Vietnam in 2022, up from 13.6% in 20211. The share of social commerce is projected to increase further to 28.7% by 20282.
- The average annual revenue per social commerce user on consumer goods in Vietnam is estimated at US$ 44.9 in 2022, which is higher than the regional average of US$ 39.61. The revenue per user is expected to grow at a CAGR of 25.4% during 2022-20282.
- The leading social commerce channels in Vietnam based on penetration rate are Facebook (94%), Zalo (49%), Instagram (38%), TikTok (24%) and YouTube (21%)3. These platforms offer various features and functions to facilitate social commerce, such as chatbots, live streams, stories, groups, pages and shops.
- The main factors that influence the purchase decision of social commerce users in Vietnam are the price (76%), the product quality (74%), the product reviews (69%), the seller reputation (67%) and the delivery time (66%)1. Social commerce users also value the interaction and engagement with sellers and other buyers on social media.
