TikTok Shop, the online shopping service of the short video platform TikTok, has made significant progress in the Vietnamese market, rising to the second position in the online shopping market, according to research.
According to e-commerce market research firm Unet ECI, TikTok Shop's transaction volume in Vietnam in the first quarter reached 18.36 trillion dong (approximately 1 trillion KRW), a 15.5% increase from the previous quarter, local media such as Tuoi Tre and Vietnam News reported on the 27th (local time).
During this period, influenced by the Lunar New Year Tet holiday, the combined transaction volume of the top four online shopping companies decreased by 16% to 79.12 trillion dong (approximately 4.3 trillion KRW).
In contrast, TikTok Shop was the only one among the top four online shopping companies to see an increase in transaction volume during this period.
As a result, TikTok Shop's market share rose by 6.3 percentage points to 23.2%, surpassing the traditional online shopping leader Lazada (7.6%) to claim second place.
The top company Shopee recorded a transaction volume of 53.74 trillion dong (approximately 2.9 trillion KRW), holding a market share of 67.9%.
The number of sellers attracted by TikTok Shop also exceeded Lazada, with about 121,000 sellers compared to Lazada's approximately 115,000.
According to online market research firm DataReportal, as of early this year, TikTok had about 67 million users in Vietnam, a roughly 34% increase from about 50 million a year earlier. This allowed TikTok to surpass YouTube (about 63 million users) and closely follow Facebook (about 73 million users).
Unet ECI expects that TikTok Shop's growth, based on the live commerce model, will lead the expansion of the Vietnamese e-commerce market in the future.
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