As China's live-streaming e-commerce sector reaches saturation, savvy entrepreneurs are turning their attention to Southeast Asia. Vietnam, often dubbed "the next world factory," has become the primary destination for live commerce expansion due to its developmental parallels with China and vast e-commerce growth potential. However, mere replication of Chinese models guarantees no success. The crucial challenge lies in effective localization.
The Rise of Vietnamese E-Commerce: Opportunities and Challenges
When Vietnam's first-quarter export volume surpassed Shenzhen's in April 2022, it sparked intense discussion in China. Combined with order transfers due to China's pandemic restrictions, Vietnam appears to be inheriting the "world factory" mantle. While this industrial shift presents China with both upgrading opportunities and lost advantages, Vietnam's developmental trajectory strikingly resembles China's early reform era.
If China's market represents maturity, Vietnam's is in its adolescence—brimming with potential. With China's entrepreneurial landscape becoming increasingly saturated, many are looking to Vietnam to replicate past domestic successes, particularly in live commerce.
China's live commerce sector has produced remarkable cases—"three minutes to sell two million units" or "single-stream sales exceeding billions." Yet after years of rapid growth, the market has slowed, with top influencers monopolizing profits. This stagnation has driven entrepreneurs to transplant China's mature live commerce model to Vietnam.
Why Vietnam?
Vietnam's appeal as an entrepreneurial frontier is no accident. Its developmental similarities with China allow for experience transfer, while its e-commerce market shows tremendous growth potential.
According to the 2021 Southeast Asia E-Commerce Report by Google, Temasek, and Bain & Company, Vietnam's internet economy is projected to reach $57 billion by 2025, making it Southeast Asia's second-largest market. Vietnam's Ministry of Industry and Trade reports that online shoppers grew by 4% in 2022, exceeding 57 million. Reputa data indicates that 58.5%-61.6% of Vietnam's population will shop online by 2022's end.
Vietnam's young demographic—half under 35—boasts high internet and social media penetration (73.7%). TikTok's Vietnamese presence has flourished, with 77.28% of local influencers active on the platform, the highest rate in Southeast Asia. This reflects strong consumer enthusiasm for social shopping. Cross-border e-commerce research by Ninja Van Group shows Vietnamese consumers average 104 annual cross-border purchases—far above Southeast Asia's 66.
TikTok Shop's February 2022 Vietnam launch introduced live commerce, revolutionizing the traditional e-commerce landscape.
Copy-Paste Failure: Lessons in Localization
New arrivals often approach Vietnam with grand ambitions, believing China's playbook guarantees success. Reality proves otherwise. As one MCN operator discovered, direct replication fails.
When "Uncle Li" learned of TikTok's planned shopping cart feature for Southeast Asia three years ago, he established an MCN agency in Ho Chi Minh City to cultivate influencers. His first challenge? Recruitment. Vietnamese hosts typically work just four weekly one-to-two-hour sessions—far below Chinese standards.
Product selection also proved problematic. A proposed diverse sock assortment was rejected because "Vietnamese don't wear socks." Content strategies successful in China—dorm life, matchmaking, car reviews—failed in Vietnam where these contexts don't resonate.
The Vietnam Model: Localization is Key
After repeated failures, entrepreneurs like Li realized complete China-model replication doesn't work. Success requires a hybrid "Vietnam Model": combining Chinese strategic direction with local execution teams.
This approach works. Another MCN operator found Vietnamese consumers prefer local hosts and straightforward presentations resembling early Chinese TV shopping. One basic dance-while-selling clothing stream achieved $3,000-$4,300 GMV per session—significant for Vietnam.
Southeast Asia: Live Commerce's New Blue Ocean
Vietnam's export growth, TikTok's entry, and high-profile investments signal economic momentum. Monthly live commerce sessions now reach 2.5 million as entrepreneurs refine localized models.
The phenomenon extends beyond Vietnam. Southeast Asia's live commerce GMV grows at 306% annually, with orders up 115%, per Omise data. The regional market may hit $19 billion by 2023.
Country-specific developments show Thailand's advanced platform infrastructure, Malaysia/Singapore's high consumer acceptance, and the Philippines' entertainment-driven engagement. TikTok Shop's Southeast Asian 11.11 sales saw 141% GMV growth and 158% new seller order increases, with some accounts achieving 10x growth in two months.
Chinese entrepreneurs dominate Southeast Asia's live commerce landscape. For cross-border sellers, live streaming effectively showcases affordable Chinese products, expanding market access.
Conclusion
Cultural similarities make Southeast Asia fertile ground for live commerce—unlike challenging Western markets. However, unadapted Chinese models inevitably fail, as Lazada learned when a Thailand ad campaign provoked royal offense and consumer boycotts.
Successful market entry requires balancing experience transfer with complete localization—avoiding both superiority complexes and over-assimilation. As China's e-commerce growth slows, Southeast Asia's live commerce sector presents compelling opportunities for discerning entrepreneurs.