An analysis of the growing influence of live streaming platforms on Vietnam’s commercial landscape, along with practical recommendations for Italian companies.
In recent years, live streaming commerce has emerged as one of the most effective sales strategies in the global digital commerce landscape. Originating in China and rapidly spreading across Asia, this sales model combines the entertainment value of live video with the ability to purchase products in real time, creating an engaging and interactive experience for consumers.
Vietnam is one of the fastest-growing markets in this sector. With a young population, high internet penetration and widespread use of social media, the country provides fertile ground for the expansion of digital commerce. Leading e-commerce platforms such as Shopee Live, Lazada Live, Facebook Live and TikTok Shop are transforming the way consumers discover and purchase products, with an increasing number of companies using live streaming to reach new customers.
For Italian companies, live streaming commerce represents a strategic opportunity to enter the Vietnamese market and showcase the value of their products. Made in Italy enjoys a strong reputation in Vietnam for its quality, distinctive design and attention to detail, making sectors such as fashion, cosmetics, food & beverage, and furniture particularly well suited to this sales model.
In this article, we examine the development of live streaming commerce in Vietnam, identify opportunities for Italian brands and provide practical strategies for successfully implementing this sales approach.
The Live Streaming Commerce Market in Vietnam
In recent years, Vietnam has established itself as one of the world’s most dynamic markets for live streaming commerce, driven by a combination of factors including a young population, a highly digital culture and a growing base of increasingly demanding consumers.
Live streaming commerce is experiencing exponential growth in Vietnam, following a trend already well established in China and other Southeast Asian countries. According to a McKinsey report, purchases made through live streaming can generate conversion rates of up to 30%, as much as ten times higher than traditional e-commerce. In addition, data from Coresight Research estimate that the global live commerce market had already reached a value of USD 60 billion by 2019, highlighting the rapid development of this sales channel.
During the 2024 Double Day 9/9 campaign, one of Vietnam’s major promotional events, the LiveScope monitoring software analysed 115 live streams representing more than 540 hours of broadcasting, revealing impressive results:
- The most-watched live stream attracted 1.8 million unique viewers and generated millions of dollars in sales.
- Some retailers broadcast as many as nine live streams per day, with individual sessions lasting more than ten consecutive hours.
- The most active sectors in live commerce were cosmetics, apparel and accessories, baby products, and personal care products.
The adoption of live streaming commerce is not limited to major international brands; it has also gained significant traction among Vietnamese companies, which are using digital platforms to expand their customer base and increase sales. For example:
- Duy Tan Plastics, a long-established brand in the plastics industry, recorded 300% year-on-year growth on TikTok Shop thanks to a content strategy based on collaborations with influencers and daily live-streaming sessions.
- King Green, a rice brand, sold 500 five-kilogram packs of rice in just ten minutes during a live stream.
- Nocturnal, a youth fashion brand, generated 60% of its revenue through live-streaming sales, achieving growth of 251%.
Main Platforms
The Vietnamese market is dominated by several key platforms that host the majority of live commerce activity:
- TikTok Shop: an emerging market leader that has experienced exponential growth, with some retailers recording revenue increases of up to 72% in a single quarter thanks to live-streaming strategies.
- Shopee Live: one of the most widely used platforms for live commerce, particularly in the fashion and beauty sectors.
- Lazada Live: popular for promotional events and influencer collaborations.
- Facebook Live: used by both small entrepreneurs and major brands to reach a broad local audience.
A key role in this growth has been played by TikTok Shop’s ACE system (Assortment, Content and Empowerment), which helps sellers optimise their product assortment, create engaging content and leverage integrated advertising strategies to maximise sales.
Vietnamese Consumer Behaviour
The success of live commerce in Vietnam is largely driven by the high level of consumer trust in streamers, who act both as influencers and direct sales representatives. Key purchasing behaviours include:
- Active interaction: users participate actively in live streams by commenting and asking questions about products in real time.
- Impulse purchasing: limited-time offers and exclusive promotions encourage viewers to complete purchases immediately.
- Trust in streamers: consumers tend to place greater trust in people presenting products live than in static product descriptions on traditional e-commerce websites.
Real-world examples confirm the effectiveness of this strategy. L’Oréal, for instance, achieved a 152% increase in revenue through its live campaigns on TikTok Shop, while Vietnamese brand Bông Bạch Tuyết Corporation organised more than 4,000 live streams in just nine days, with 50% of the company’s revenue generated exclusively through live commerce.
At the same time, initiatives such as National E-commerce Week and Online Friday 2024 have encouraged greater integration of live streaming into digital commerce. The event involved more than 800 sellers, a 50% increase compared with the previous year, with 900 live streams broadcast and 4,750 promotional videos shared. This helped promote the message “Proud of Vietnamese Goods” and strengthen the competitiveness of local businesses.
These figures clearly demonstrate that live streaming commerce represents one of the most promising opportunities for Italian companies seeking to enter the Vietnamese market and capitalise on local consumers’ strong interest in this innovative sales format.
Opportunities for Italian Companies
The expansion of live streaming commerce in Vietnam offers significant opportunities for Italian companies, especially in sectors where Made in Italy is synonymous with quality and prestige. High levels of user engagement on live-selling platforms and growing demand for premium products make this a strategic channel for Italian brands seeking to enter the Vietnamese market or strengthen their existing presence.
High-Potential Sectors
According to market trends, the sectors in which Italian products could achieve the greatest success through live streaming commerce in Vietnam include:
- Fashion: Italy is a global benchmark for style and design. Italian brands can use live streaming to showcase collections in real time, highlight tailoring details and provide styling advice.
- Cosmetics: Vietnam’s beauty sector is growing rapidly, with increasing demand for premium products. Italian skincare and make-up brands can use live streaming for live demonstrations, tutorials and product testing.
- Food & Beverage: products such as Italian wine, extra virgin olive oil and other high-quality food specialities are becoming increasingly popular in Vietnam. Live streaming can be an effective tool for educating local audiences about the distinctive qualities of Italian products and creating engagement through live tastings.
- Furniture and design: Vietnam is experiencing a real estate boom and growing interest in interior design. Live streaming can be used to showcase luxury furniture and provide personalised consultations in real time.
Strengths of Made in Italy
Made in Italy enjoys an excellent reputation in Vietnam thanks to several key factors:
- Quality and craftsmanship: Italian products are recognised for their attention to detail and use of high-quality materials.
- Design and innovation: in sectors such as fashion, furniture and cosmetics, Italian design represents a significant competitive advantage.
- Brand reputation: Vietnamese consumers associate Italian brands with status and prestige and are willing to pay a premium for authentic, high-end products.
Successful Case Studies
Some Italian brands have already begun experimenting with live streaming commerce in Vietnam, with promising results. Examples include:
- Gucci Beauty launched “Gucci Live”, a video shopping service connecting sales staff with customers via mobile devices and computers. The initiative aims to replicate the personalised in-store experience, enhance engagement and potentially increase online sales.
- Illy Caffè participated in Black Friday 2024, offering significant discounts on its products through its online store. During the promotion, Illy recorded an increase in sales, highlighting the effectiveness of online campaigns in the Vietnamese market.
- Furla, the well-known leather goods brand, has implemented live-streaming strategies on e-commerce platforms, working with local influencers to showcase its products. Although specific figures are not available, such initiatives have generally contributed to increased online sales and greater brand visibility.
Strategies for Success
Italian companies seeking to capitalise on the potential of live streaming commerce in Vietnam should adopt a targeted approach:
- Collaborate with Vietnamese influencers and Key Opinion Leaders (KOLs) to build trust and increase brand visibility.
- Invest in engaging and interactive content, including live demonstrations, tutorials and Q&A sessions.
- Use local e-commerce platforms such as TikTok Shop, Shopee Live and Lazada Live to reach a wider audience.
- Leverage special events and promotional campaigns to maximise sales during live-streaming sessions.
With a rapidly expanding digital market and an audience increasingly interested in premium products, live streaming represents a strategic growth driver for Made in Italy in Vietnam, opening up new opportunities for Italian companies to expand and consolidate their presence in Southeast Asia.
Logistics and Regulatory Considerations
The adoption of live streaming commerce in Vietnam is taking place within a regulatory framework that is still evolving. The Vietnamese government has introduced various regulations aimed at distinguishing traditional e-commerce from social commerce, with the objective of protecting both sellers and consumers. However, the existing regulatory framework still contains gaps when it comes to commercial activities conducted through social media.
Regulation of E-commerce and Social Commerce
At present, the regulation of commercial activity on social networks depends on the functionalities offered by individual platforms:
- Social networks without e-commerce functions: commercial information published on platforms such as Facebook or Instagram that do not support direct sales is regulated under Decree 72/2013/ND-CP governing the management of social networks.
- Platforms with e-commerce functions but no integrated checkout: marketplaces such as Facebook Marketplace or Zalo Shop fall under regulations governing commercial social networks.
- Platforms with full e-commerce functionality: at present, there are no social networks in Vietnam offering a fully integrated purchasing and payment system. Should such platforms emerge in the future, they would be regulated under e-commerce legislation in a similar way to traditional marketplaces such as Shopee or Lazada.
The lack of clear regulations governing social commerce creates uncertainty for sellers and may lead to future legislative updates aimed at establishing a more consistent regulatory framework for the sector.
Taxation
The main taxes applicable to social commerce and e-commerce activities in Vietnam include:
- Value Added Tax (VAT): applied to the sale of goods and services.
- Personal Income Tax (PIT) and Corporate Income Tax (CIT): payable by sellers operating through social platforms.
- Withholding tax obligations: applicable to international social media platforms operating in Vietnam to ensure that taxes are paid on revenue generated within the country.
More stringent tax regulations are likely to be introduced in the coming years, in line with the government’s increasing focus on the digital sector.
Customs Management for E-commerce
Recent regulatory changes have simplified import and export procedures for e-commerce. A new decree now allows buyers and marketplaces to manage customs procedures directly without intermediaries, thanks to the integration of e-commerce platforms with the customs system.
This automated system makes it possible to:
- Transmit order information directly to the customs system.
- Automatically generate customs declarations for buyers.
- Classify products and determine applicable taxes without manual intervention.
However, these simplified procedures are currently limited to e-commerce platforms with integrated purchasing and payment functions. Social commerce does not yet benefit from the same advantages, which could represent an obstacle to its international expansion.
Final Considerations
The rise of social commerce in Vietnam reflects a broader transformation in the way consumers discover and purchase products. The integration of interactive content, influencer marketing and real-time sales has made live streaming a powerful tool for both local and international companies.
For Italian companies interested in entering the Vietnamese market, the opportunities are significant, but understanding the logistical and regulatory challenges is essential. Adopting a flexible strategy that combines traditional e-commerce and social commerce may be the key to reaching the right audience and maximising sales. In addition, building an efficient distribution network, adapting to local regulations and making strategic use of digital platforms will be critical factors for success in the Vietnamese market.
Finally, the social commerce sector continues to evolve rapidly, and companies that are able to adapt to emerging trends will gain a competitive advantage. Investing in high-quality content, partnerships with local KOLs and innovative sales strategies will be essential to fully capitalise on the potential of this digital revolution.