Vietnam’s retail landscape is undergoing a rapid transformation, with TikTok playing a central role.

Vietnam’s e-commerce market is expanding at roughly 26% year-on-year - nearly three times faster than offline retail, and according to Redfern Digital CEO Ryan Molloy, this is only the beginning.

In a recent episode of You Don't Know Vietnam, Ryan explains how TikTok Shop has reshaped consumer behaviour, accelerated the shift towards discovery-led commerce, and fundamentally changed what it takes for brands to compete.

TikTok is reshaping consumer behaviour

Just a few years ago, TikTok Shop barely existed in Vietnam.

Today, it has overtaken Shopee and Lazada to become the country’s leading e-commerce platform.

Platforms like Shopee and Lazada are primarily search-based. Consumers know what they want, search for it, compare prices and reviews, and then purchase.

TikTok Shop flips that model entirely.

Consumers discover products while scrolling through content. In many cases, consumers buy products they were never actively searching for in the first place.

This shift is creating major opportunities for challenger brands and new market entrants.

Why discovery-led commerce is good news for new brands

Historically, entering Vietnam’s retail market required significant distribution power, shelf space and offline relationships.

TikTok Shop allows brands to completely bypass these barriers.

Rather than competing for visibility in physical retail, brands can now:

• Use creators/influencers to reach niche audiences
• Drive awareness and sales simultaneously
• Test and refine messaging + positioning through content

“New brand entrants within Vietnam are going to TikTok because it is marketing and sales all within one 360-degree ecosystem.” says Ryan.

Live Streaming is no longer optional in Vietnam

One of the biggest shifts happening right now is the rise of live commerce.

While live selling existed previously through Facebook Live, it has now become a core growth engine for e-commerce brands.

The act of live streaming has gone from being a nice-to-have marketing tactic to a non-negotiable sales channel.

Brands are now expected to run regular live streams, work with KOLs and affiliates, and consistently produce short-form video to stay visible within platform algorithms.

Ryan explains that brands “could be live streaming four or five hours a day.”

Vietnam’s e-commerce boom has only just begun

Despite rapid growth in major cities, e-commerce penetration in Vietnam remains relatively low compared to more mature markets.

According to Ryan, e-commerce accounts for roughly 12-15% of total retail in Vietnam. 

In China, it’s 40%.

This shows that Vietnam’s e-commerce market still has significant room to grow.

“If you can take 15% of your market share online right now and hold that for the next five years through growth, you’re going to be in a very good position,” Ryan explains.

Whilst still in its early stages, Vietnam’s retail rulebook is being rewritten in real time - and brands that fail to keep up will quickly become irrelevant.