Live Commerce in Vietnam: Why It’s Growing Rapidly and What’s Next

What is Live Commerce?

As briefly mentioned earlier, the pandemic forced many people into self-isolation and made it difficult to shop in person, leading to a rapid growth in the e-commerce market.However, a significant issue arose: users reported that the products they received did not match the photos or descriptions they saw online. While this issue exists in Japan as well, it has been particularly prevalent in Vietnam, where counterfeit goods are common and discrepancies between what is shown on e-commerce sites and what is received are frequent. Trust in companies selling such products has been steadily eroding.

This is where “live commerce,” which utilizes social media to enable real-time communication between viewers and broadcasters, comes into play.

Benefits of Live Commerce

Reasons why live commerce is popular:

For buyers:
1. Ask questions in real-time.
2. See detailed product information through video.
3. Discover products used by popular influencers.
4. Check out the latest trends.
5. Find products easily from your smartphone.

For sellers:
1. Respond to user questions instantly.
2. Explain products in detail with videos, reducing complaints.
3. Attract new customers using influencers.
4. Share information easily with a smartphone.
5. Buy and sell products without needing a company.
6. If the host is an influencer, the company handles video editing and items, making promotion hassle-free.

Latest Trends in Live Commerce in Vietnam

According to the Vietnam E-Commerce Association (Vecom), Vietnam’s e-commerce market revenue reached $13.7 billion in 2022, marking an approximate 15% increase from the previous year. The market is expected to see double-digit, rapid, and stable growth rates from 2016 to 2025.

As competition in the e-commerce sector intensifies, major Vietnamese e-commerce platforms such as Shopee and Lazada are hosting numerous live commerce events, to attract new users.

While international platforms like Facebook, TikTok, YouTube, and Instagram dominated live commerce up until 2020, recent developments include the launch of GoStream, a Vietnamese live streaming platform funded with $1 million by VinaCapital Ventures. This new platform is generating significant anticipation from various industry players.
（Sources：bizhub、LAO DONG）

Challenges in Vietnam’s Live Commerce

In Vietnam, live commerce is widely accessible, allowing anyone to easily start streaming. This has led to a surge in individuals selling products, including farmers from rural areas. However, not everyone possesses the necessary broadcasting skills, such as proper attire and communication techniques, which often leads to issues between sellers and users. Moreover, the presence of unscrupulous sellers highlights the need for better regulation and oversight in the industry.

Conclusion

What did you think? In this article, we discussed “the rapidly growing live commerce industry in Vietnam“. As mentioned earlier, not only individual sellers but also major Vietnamese companies like Shopee and Lazada have started using live commerce for promotions. It’s likely that more companies will adopt live commerce for promotions, and more platforms will be developed in the future.

Living in Vietnam, I frequently use social media platforms like Facebook and Instagram. Compared to pre-COVID times, I’ve noticed a significant increase in live commerce broadcasts by Vietnamese people, particularly in the last two or three years. On the buyer’s side, they seem to gain a sense of security by connecting directly with sellers through live chats and Facebook Messenger during the broadcasts.

At ALIVE Vietnam, we have many Vietnamese staff who are fluent in Japanese. We can support you in making the most of live commerce by incorporating the expertise we’ve cultivated over the years in Vietnam and the opinions of our Vietnamese staff. Please feel free to reach out to us.

We will continue to share valuable insights, so please stay connected with us.

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