Premia TNC Vietnam Team
Author
Vietnam’s e-commerce market is rapidly expanding, attracting increasing interest from companies seeking new growth opportunities as Korea’s home shopping sector contracts. Many businesses are now shifting their focus to Vietnam to explore its potential as a strategic market.
In this article, we analyze the factors driving the rise of Vietnam’s e-commerce sector and try to understand why more companies are choosing to enter the market at this time.
The Korean E-Commerce Market Has Hit Its Peak: Exploring New Growth Opportunities
Just a few years ago, Korean home shopping was booming. The show hosts’ skillful explanations and limited-quantity discount events added to the appeal, driving a surge in sales.
But at some point, YouTube and Netflix became more familiar than TV, and consumers stopped turning on their TVs. With the rapid rise of mobile shopping and live commerce, the traditional home shopping model was gradually losing ground.
Here’s how things changed:
- Declining TV viewership ratings led to a decline in home shopping broadcast viewers.
- The rapid growth of mobile and social media shopping brought changes in shopping methods.
- The growth of live commerce meant that real-time communication became a new trend.
- Domestic market saturation created the need to enter new overseas markets.
Due to this, the focus was no longer solely the Korean market.
Vietnam: A Prominent E-Commerce Market in Southeast Asia
“If Korea was 10 years ago, Vietnam is now looking at Korea from 10 years ago.”
Vietnam has emerged as the fastest-growing e-commerce market in Southeast Asia, recording an impressive average annual growth rate of over 25%. This rapid digital transformation mirrors the explosive growth Korea experienced a decade ago, making Vietnam an attractive destination for businesses seeking new opportunities.
One of the most striking observations upon arrival is the widespread smartphone usage among Vietnamese consumers. It’s common to see people watching TikTok or Shopee Live while shopping on the streets, illustrating how deeply mobile commerce has penetrated everyday life.
The Vietnamese e-commerce market is projected to surpass $24 billion by 2023, fueled largely by mobile-driven purchasing behaviors. Notably:
- Mobile shopping accounts for over 90% of all online transactions, reflecting a vibrant online consumption culture led by Generation Z.
- SNS and live commerce platforms are thriving, with TikTok Shop, Shopee Live, and Facebook Live emerging as major channels.
- There is a strong demand for Korean products, particularly in K-beauty, K-food, and K-fashion, thanks to the solid and positive Korean brand image among local consumers.
This dynamic landscape presents a golden opportunity for home shopping companies to expand their presence in Vietnam. The show host model that proved so successful in Korea could be seamlessly adapted to this rapidly growing market, leveraging local enthusiasm for live commerce and mobile shopping.
A Korean Home Shopping Company’s On-Site Journey to Success in the Vietnamese Market
Upon entering the Vietnamese market, many Korean brands have found notable success by leveraging live commerce platforms to connect with local consumers.
In Ho Chi Minh City, several Korean K-beauty brands have actively utilized Shopee Live to promote their products. Hosted by experienced Korean presenters with support from Vietnamese interpreters, these broadcasts quickly attracted attention and engagement.
Key highlights from K-beauty live commerce:
- The first Shopee Live broadcast achieved sales exceeding VND 100 million (approx. KRW 6 million).
- Viewers actively engaged with questions like “Is this a Korean product?” and “When will there be a sale?”
- Home shopping techniques such as storytelling and real-time interaction boosted engagement.
- Instant feedback and reviews increased brand awareness and consumer trust.
A similar approach was successful in the K-food sector. A Korean company entered Vietnam through TikTok Shop, focusing on high-demand products such as instant food and health supplements.
Key highlights from K-food live commerce:
- Average daily sales exceeded 3,000 items.
- Collaborations with local influencers enhanced visibility and credibility.
- Real-time tasting reviews helped build consumer confidence.
- Establishing a Vietnamese corporation enabled local payment systems, removing purchasing barriers.
These examples illustrate the strong potential for Korean home shopping companies to thrive in Vietnam’s fast-growing e-commerce market. By combining proven home shopping strategies with localized operations, brands can:
- Strengthen consumer trust.
- Increase visibility and engagement.
- Drive significant sales growth in a competitive market.
4 Key Success Strategies for Vietnam’s Booming E-Commerce Market
1. Leverage Major E-Commerce Platforms
Utilize key platforms in Vietnam such as Shopee, Lazada, and TikTok Shop by establishing a local corporation and registering as an official seller to build strong brand credibility. Since Vietnamese consumers prefer dealing with local businesses, incorporation plays a crucial role in earning their trust and boosting sales opportunities.
2. Maximize the Power of Live Commerce
Enhance brand engagement through trustworthy and engaging live broadcasts, adopting storytelling techniques similar to home shopping. Platforms like Shopee Live and TikTok Live are expanding real-time sales opportunities, and collaborating with influencers can further strengthen brand visibility and consumer trust.
3. Build a Localized Product Strategy
Tailor your offerings to match each market’s preferences. Vietnam favors affordable K-beauty and K-food products, Singapore responds well to premium brand items, and Malaysia offers opportunities through Halal-certified products targeting Muslim consumers.
4. Optimize Local Logistics and Delivery
Strengthen competitiveness by ensuring fast delivery through local logistics warehouses in Vietnam and leveraging Shopee and Lazada’s fulfillment services to minimize operational burdens. With local consumers expecting quick delivery, establishing a strong logistics network is essential to driving customer satisfaction and repeat purchases.
Why Now Is the Ideal Time to Tap Into Vietnam’s E-Commerce Potential
Home shopping-based businesses have strong potential to thrive in Vietnam by leveraging the rapidly growing live commerce trend. Real-time sales on major platforms such as Shopee, Lazada, and TikTok Shop are reshaping the retail landscape, offering brands a direct way to engage consumers and boost sales.
Establishing a local Vietnamese corporation not only enhances credibility but also provides access to tax benefits and convenient payment systems, creating a more stable business environment. For home shopping companies, combining live commerce with SNS-driven direct sales is an effective strategy to tap into Vietnam’s fast-growing market. Now is the ideal time to seize this opportunity. For tailored support, contact Premia TNC.
Premia TNC Vietnam Team
Author
Premia TNC Vietnam is a dynamic team of experts dedicated to supporting businesses and entrepreneurs as they establish, manage, and grow their presence in Vietnam and across the region. Premia TNC Vietnam specializes in providing tailored corporate services, from company incorporation and compliance to tax planning and accounting. With our extensive experience and deep understanding of the local regulatory environment, we are here to make business operations smoother and more efficient.
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