Figure 1. Social media penetration rate over the years
According to Decision Lab's latest "Connected Consumer Report" for Q2 2024, TikTok achieved an all-time high "indispensability score". When asked, "If you could only use one social media platform, which platform would you select?" 11% of Vietnamese users chose TikTok as their most essential app. Notably, while other social media giants are witnessing declines, TikTok’s indispensability is on the rise across all generations.
In Vietnamese culture, the success of an endeavour is often looked at through the lens of Fengshui, which is normally based on three key factors: "Thiên thời" (The right time) - "Địa lợi" (The right place) - "Nhân hòa" (The right people). By examining TikTok's rise in Vietnam through the lens of these three criteria, we can gain valuable insights into the app's remarkable growth and enduring popularity.
Thiên thời - The right time
"Thiên thời" refers to seizing the right moment and capitalising on opportunities. When TikTok first entered Vietnam in 2019, the app has been quickly appealed to the Vietnamese with its bite-sized content. Although joining the market later than other players like YouTube and Facebook, TikTok was soon the go-to short-video platform. The platform’s popularity has skyrocketed in recent years. In 2019, only 8% of users preferred it for watching short videos. However, by Q2 2024, it had surpassed all other established platforms, claiming the top spot with a 47% preference rate. While Gen Z initially drove this growth, the platform quickly gained traction across other generations, solidifying its widespread appeal.
Download the full Connected Consumer Q2 2024 here
Figure 3. TikTok has surpassed other streaming giants to become and remain the top platform for watching short videos since Q4 2021
The app's success was further amplified by the COVID-19 pandemic, which saw a surge in social media usage as people sought connection and entertainment during lockdowns. The “Learn on TikTok” campaign during the pandemic was a huge success that further boosted the growth of this platform. According to VnEconomy, educational content on TikTok in Vietnam rose 34-fold from January 2020 to January 2021, and entertainment content increased 26-fold.
Download the full Connected Consumer Q2 2024 here
TikTok's emphasis on shared experiences and community-building resonated with users seeking a sense of belonging and normalcy amidst the chaos. The platform's interactive features, such as duets and challenges, allowed Vietnamese users to participate in global trends and feel connected to a wider community, even while physically apart. By providing a quick and easily digestible form of entertainment, TikTok became a go-to destination for Vietnamese users looking to unwind and disconnect from the stresses of the pandemic.
Figure 4. The penetration rate of TikTok skyrocketed over the COVID-19 period
The last factor that contributed to TikTok's success in terms of "Thiên Thời" is the opening of TikTok Shop. Introduced during Vietnam's post-COVID-19 economic recovery, TikTok Shop capitalised on three key trends: the resurgence of small and medium-sized enterprises (SMEs), booming e-commerce, and increasing digital savviness among consumers. This timing proved crucial as many Vietnamese SMEs were actively seeking new marketing channels to reach younger, digitally-savvy audiences.
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TikTok's effectiveness as an advertising platform quickly became apparent. A survey revealed that one in three Vietnamese SMEs using TikTok in Q1 2021 preferred it over other platforms, citing its ads as more effective. This preference stemmed from TikTok's unique ability to engage users through short-form, creative content, which aligned perfectly with the fast-paced, visually driven nature of online marketing.
Figure 6. TikTok Shop was the only e-commerce platform that consistently saw growth from Q2 2023 to Q2 2024
Địa lợi - The right place
"Địa lợi" emphasises the importance of being in the right place and leveraging favourable market conditions. Vietnam's digital landscape proved to be fertile ground for TikTok's expansion, with a large, tech-savvy population eager to embrace new social media platforms. The country's improving digital infrastructure and increasing smartphone penetration further contributed to TikTok's growth.
Download the full Connected Consumer Q2 2024 here
TikTok has tapped into Vietnam's massive Gen Z population, who are the primary drivers of the app's popularity. As of Q2 2024, TikTok’s indispensability is on the rise across generations. With nearly 50 million TikTok users, Vietnam is a huge market for the platform. TikTok has capitalised on this vast user base by introducing features like TikTok Shop, which aligns with the growing e-commerce trend in the country.
Figure 7. TikTok’s indispensability increased across generations in Q2 2024
Nhân hòa - The right people
In Fengshui philosophy, “Nhân Hòa” refers to creating harmony between people and their surroundings. In the case of TikTok, it is about the influencers, users, and the brand itself. The platform has created an environment where influencers thrive and communities flourish, fostering authentic connections and user engagement.
TikTok treats influencers as valuable partners, providing them with tools and features to enhance their content creation and audience engagement. The platform's Creator Fund, for instance, allows popular creators to monetise their content directly through TikTok. This approach not only incentivizes high-quality content production but also helps retain talented creators on the platform.
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TikTok has undeniably become a powerful launchpad for content creators, revolutionising the influencer landscape. Since its inception, the platform has popularised and redefined terms like influencers, KOLs, and KOCs, transforming these roles into highly sought-after career paths. The platform's unique algorithm democratises content distribution, giving every user a chance to achieve viral success and potentially become an influencer. This aligns perfectly with the "Nhân Hoà" principle by creating equal opportunities for all users to gain visibility and build their personal brand. As a result, the platform has fostered a diverse and vibrant community of creators from various backgrounds and niches.
TikTok's appeal to aspiring influencers lies in its potential for rapid growth and monetisation. Creators can attract brand partnerships, sponsorships, and collaborations, often more quickly than on other platforms. This has led to a surge in User-Generated Content (UGC), as more individuals are motivated to create and share content in hopes of building their influence and reaping these benefits.
Moving on
TikTok's meteoric rise in Vietnam exemplifies the perfect alignment of "Thiên thời, Địa lợi, Nhân hòa" - the right time, place, and people. By seizing opportunities, leveraging favourable market conditions, and fostering a vibrant community, TikTok has become an integral part of Vietnam's digital landscape. Its success story serves as a testament to the enduring relevance of traditional Fengshui principles in the modern digital age.
As a Vietnamese proverb states, "Thuận thiên giả tồn, nghịch thiên giả vong" (Those who follow the way of heaven will prosper, those who go against it will perish). TikTok's journey in Vietnam proves that when a platform aligns with cultural values and market needs, while constantly adapting to changes and challenges regardless of current conditions, it can achieve remarkable success and lasting impact.
For more insights from Decision Lab’s Connected Consumer Report, download the full Q2 2024 report HERE.
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