Facebook, Instagram, and TikTok are popular among Vietnamese young people, creating superior business value.

By Metanet Institute

Overview

In January 2021, there were approximately 64 million social media users in Vietnam, and the majority of them were between 18-34 years old. Facebook, Instagram, and TikTok are popular platforms among Vietnamese young people (Table 1-1). Facebook is the most popular platform for online communication, news consumption, and entertainment with over 63 million active users. In 2020, 96% of Vietnamese young people have a Facebook account, and they spend an average of 2 hours per day on the platform. Instagram has over 15 million active users. 68% of Vietnamese young people have an Instagram account, and they spend an average of 1.5 hours per day, it is used for sharing photos and videos, and it is also widely used for online shopping. TikTok is a relatively new social media platform in Vietnam, but it has gained popularity among young people. In 2020, TikTok was the most downloaded app in Vietnam, with over 39 million downloads. 33% of Vietnamese young people have a TikTok account, and they spend an average of 1 hour per day on the platform. TikTok is the most popular for short-form videos and entertainment.

Table 1-1 Social Media Platforms Usage

Usage across Gender

As of January 2021, the percentage of social media users included 50.7% female and 49.3% male. This suggests that social media usage is relatively evenly split between males and females in Vietnam. However, it is worth noting that social media usage may differ between specific platforms, with some platforms being more popular among certain genders or age groups. For example, Instagram is often seen as more popular among female users, while YouTube and Facebook may be more popular among male users in Vietnam. In addition, female consumers in Vietnam are more likely to use social media platforms for online shopping than male consumers, with 28% of female respondents saying that they had purchased through a social media platform, compared to 18% of male respondents. Women in Vietnam are also more likely to follow influencers and celebrities on social media, which can influence their purchasing decisions. Men in Vietnam are more likely to use online marketplaces, such as Lazada and Shopee, for their online shopping needs.

Reflections

These social platforms have significant reflections on the interests, behaviors, and values of the Vietnamese young generation. Here are key reflections:

1. Strong social connections: Vietnamese young people value strong social connections, and this is reflected in their use of social media platforms such as Facebook. These platforms enable them to stay connected with friends and family, share their thoughts and experiences, and build new relationships.
2. Visual storytelling: Vietnamese young people are creative and expressive, and this is reflected in their use of Instagram, which is primarily focused on visual content. They use the platform to share photos and videos that tell their stories and express their emotions and perspectives.
3. Entertainment and humor: Vietnamese young people enjoy entertainment and humor, and this is reflected in their use of platforms such as TikTok. They create and share short-form videos that are funny, engaging, and entertaining.
4. Digital commerce: Vietnamese young people are tech-savvy and increasingly interested in digital commerce, and this is reflected in their use of social media platforms such as Instagram. They use the platform to discover and purchase products, as well as to promote their own businesses and products.

Change of Culture

These platforms have had a significant impact on the culture of the Vietnamese young generation, shaping their language, communication, self-expression, leisure time, and consumer behavior in various ways. While these changes are not necessarily negative, they do represent a shift in traditional cultural values and practices, and it is important to consider their long-term effects on the culture of Vietnamese society.

1. Language and communication: Social media platforms have created new ways of communicating among the Vietnamese young generation, with many using informal language and abbreviations in their online communication. This has led to changes in the way Vietnamese is used, with many young people adopting new phrases and expressions that are popular on social media.
2. Self-expression: Social media platforms have given Vietnamese young people a platform to express themselves creatively and share their ideas and experiences with a wider audience. This has led to a greater emphasis on individualism and self-expression, as well as a greater openness to new and diverse perspectives.
3. Entertainment and leisure: Social media platforms have also changed the way Vietnamese young people spend their leisure time, with many spending more time on these platforms than on traditional forms of entertainment such as television or movies. This has led to a greater emphasis on online entertainment, with many young people creating and sharing their own content for others to enjoy.
4. Consumer culture: Social media platforms have also contributed to the growth of consumer culture among the Vietnamese young generation, with many using these platforms to discover and purchase products online. This has led to a greater emphasis on materialism and consumption, as well as a greater focus on personal branding and self-promotion.

Change in Consumer Behavior

These platforms provide new opportunities for businesses to engage with consumers and change the way that consumers discover and purchase products. Here are some ways in which social media platforms have affected Vietnamese consumer behavior:

• Discovery and research: Social media platforms have become a key source of product discovery and research for Vietnamese consumers, particularly for younger generations. Many Vietnamese consumers use social media platforms to discover new products, read reviews and recommendations, and compare prices before making purchasing decisions.
• Influencer marketing: Social media platforms have also created new opportunities for businesses to engage with consumers through influencer marketing. Vietnamese consumers follow influencers and celebrities on social media and are often influenced by their recommendations and endorsements when making purchasing decisions.
• E-commerce: Social media platforms have contributed to the growth of e-commerce in Vietnam, with many businesses using these platforms to sell products directly to consumers. Instagram, for example, has become a popular platform for e-commerce in Vietnam, with many businesses using the platform to showcase their products and connect with potential customers.
• Online payment: Social media platforms have also contributed to the growth of online payment systems in Vietnam, making it easier for consumers to purchase products online. Many social media platforms in Vietnam have integrated online payment systems, allowing consumers to make purchases directly through the platform. For online Payment, the most popular e-wallets in Vietnam are MoMo, ZaloPay, and ViettelPay, which are used by 61%, 20%, and 14% of respondents respectively (Fig. 1-1).

Fig. 1-1 Use of E-wallets for online payment in Vietnam

Value Creation

Social media platforms create value for firms by providing a way to increase brand awareness, engage with customers, market products and services cost-effectively, drive website traffic, and gain insights into customer behavior and preferences.

1. Increased brand awareness: Social media platforms provide firms with a way to reach a large audience and increase their brand awareness. By creating engaging content and running targeted advertising campaigns, firms can attract new customers and build a loyal following.
2. Customer engagement: Social media platforms enable firms to engage with their customers in real time. By responding to comments and messages, firms can build relationships with their customers and show that they value their opinions.
3. Cost-effective marketing: Social media platforms provide firms with a cost-effective way to market their products and services. Compared to traditional advertising methods, such as television or radio ads, social media advertising is relatively inexpensive and can be targeted to specific demographics and interests.
4. Increased website traffic: Social media platforms provide firms with a way to drive traffic to their websites. By sharing links to their website and creating content that encourages users to click through, firms can increase their website traffic and potentially generate more sales.
5. Customer insights: Social media platforms provide firms with access to real-time data on customer behavior and preferences. This information can be used to develop more effective marketing strategies, tailor products and services to customer needs, and make informed business decisions.

Social media platforms provide firms with a range of opportunities to reach and engage with their target audience, drive sales, and achieve their business objectives. Firms that leverage social media effectively can gain a competitive advantage and succeed in the Vietnamese market

• Create and share engaging content: Firms can use social media platforms to create and share content that is relevant and interesting to their target audience. This can include text, images, and videos that highlight their products or services, share industry news or trends, or provide helpful tips and advice.
• Run targeted advertising campaigns: Firms can use social media platforms to run targeted advertising campaigns to reach their ideal customers. By using demographic and interest-based targeting, firms can ensure that their ads are seen by the right people, increasing the chances of generating leads and sales.
• Use influencer marketing: Firms can partner with influencers on social media platforms to promote their products or services to their followers. Influencers have a loyal following and their recommendations can be very influential in driving sales for firms.
• Provide customer support: Firms can use social media platforms to provide customer support and answer questions in real-time. This can help build trust and loyalty with customers, as they feel that their concerns are being heard and addressed.
• Integrate e-commerce features: Firms can use social media platforms to sell their products or services directly to customers. Platforms like Facebook and Instagram have integrated e-commerce features that allow firms to showcase their products and enable customers to make purchases without leaving the platform.
• Conduct market research: Firms can use social media platforms to gather data and insights on their target audience. By analyzing user behavior and engagement with their content, firms can better understand their customers and create more effective marketing strategies.