According to the latest “Connected Consumer Report for Q1 2024” by Decision Lab, Facebook, Zalo, and YouTube remain the platforms with the highest penetration rates. TikTok, the popular short video app, has declined in the last quarter, now standing at 66%. In contrast, X (formerly Twitter) has rebounded significantly, nearly as high as Q3 2023.

Notably, Threads, Meta's public conversation app, is gaining steady adoption across age groups, especially Generation Z. Its penetration rate reached 5% in Q1 2024, a 2 percentage point increase over the past three quarters. Although modest, this growth indicates a growing interest in text-based platforms, significantly among younger users.

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Mr Thue Quist Thomasen, CEO of Decision Lab, shared:

“As text-based platforms have demonstrated initial growth, early adopters of new platforms like Threads can gain significant advantages and have ample experimentation opportunities. However, it is crucial to recognise that exploring new channels is a time-intensive process that does not always yield successful outcomes. Moreover, given the ever-evolving nature of the social media landscape, predicting the next trend with certainty is challenging. Therefore, businesses must carefully evaluate their goals, target audience, and available resources before investing in text-based platforms while remaining agile and adaptable to the dynamic digital environment.”

Spotify makes a multi-generational comeback in music streaming

After a decrease in usage during the previous quarter, the music streaming industry has bounced back, with YouTube maintaining its position as the frontrunner. However, Spotify has emerged as a unique player in the market, demonstrating a steady recovery in user engagement since Q3 2023. This music streaming platform also stands out as the only one to experience substantial growth across all generations on a quarter-over-quarter basis.

Spotify's success in the Vietnamese market can be attributed to its tailored approach and strategic partnerships with local players. By understanding Vietnamese listeners' unique preferences and behaviours, Spotify has effectively penetrated the market and established itself as a leading music streaming service in the country.

Additionally, as podcasts gain popularity among Vietnamese audiences, with a higher-than-average percentage of regular podcast listeners, Spotify finds itself in an advantageous position to leverage this expanding trend. The platform has made notable progress in the podcast domain by providing a wide array of content tailored to the preferences and requirements of Vietnamese listeners. This has helped Spotify attract a wider audience and become a go-to destination for podcast content in Vietnam.

Xanh SM is now the second most preferred ride-hailing app in Vietnam

According to the latest “Connected Consumer Report for Q1 2024” by Decision Lab, Xanh SM has become the second-largest ride-hailing app in Vietnam, both in terms of penetration rate and preferences. Additionally, the electric ride-hailing app now holds a 15+% preference rate for car and bike ride-hailing services, positioning it second only to market leader Grab.

Mr Nguyen Van Thanh, Group CEO of Xanh SM, expressed:

“The impressive growth of Xanh SM in 2024, with over 30,000 electric taxis across 40 provinces in Vietnam and the successful launch of the GSM Platform, which received over 1,000 registrations from independent driver partners, is a testament to the support from customers, drivers, and the dedication of Xanh drivers. As the second-largest ride-hailing platform in Vietnam with over 20% market share in the first half of 2024, we are committed to pushing boundaries and creating convenient and sustainable transportation solutions. We believe that green transformation is an inevitable trend, and we are ready to lead the electric vehicle revolution, making eco-friendly transportation accessible to everyone with affordable costs, reliable service, and safety."

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The ride-hailing market in Vietnam has seen significant shifts in recent quarters. While Grab remains the dominant player with a 64% market penetration rate, its business has declined over the last year. In contrast, other ride-hailing apps in the market have either maintained steady performance or have started to rebound lately. This is a clear sign that the competitive landscape is evolving, with players making inroads and capturing market share from the incumbent leader.

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Commenting on the rankings, Mr Thue Quist Thomasen, CEO of Decision Lab, highlighted the immense potential for growth in Vietnam's ride-hailing market:

"The widespread adoption and high levels of user satisfaction with online ride-hailing platforms set the stage for remarkable expansion in the coming years. As more individuals grow accustomed to the convenience, reliability, and cost-effectiveness these services provide, the demand for ride-hailing is poised to skyrocket. This growth potential is further amplified by the rising smartphone penetration rate in Vietnam, enabling a larger share of the population to access and leverage these platforms. However, sustaining growth will require substantial investments and robust execution strategies, especially for emerging players like Xanh SM.”

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