TikTok Shop has become Vietnam's second-largest e-commerce site by revenue, with sales hitting VND16.3 trillion (US$689 million) in January-June.
TikTok Shop has surpassed Singapore-headquartered Lazada and now sits second behind Shopee, another Singaporean platform, despite just launching in Vietnam last year, according to a report by local e-commerce data analysis firm Metric.
The report showed that the local e-commerce sector’s total revenue reached VND92.75 trillion ($3.9 billion) in the first half of 2023, surging 46 percent year on year.
This total revenue included VND43 trillion ($1.8 billion) earned in the first quarter and about VND50 trillion ($2.1 billion) in the second quarter.
Notably, TikTok Shop grew impressively as it surpassed Lazada last quarter after reporting revenue 3.5 percent lower than that of Lazada in the first quarter.
In the last quarter of 2022, TikTok Shop posted revenue about 80 percent of Lazada’s although it had only been operating for four months.
In the first half of this year, 117 million products were sold via TikTok Shop.
Meanwhile, Lazada generated revenue of VND15.7 trillion ($661.2 million) with 117.5 million products sold during the same period.
Shopee’s respective figures were VND59 trillion ($2.5 billion) and 667 million products.
TikTok, owned by China's ByteDance, has over 325 million monthly users and over 15 million enterprises in Southeast Asia.
The entertainment value of TikTok has boosted the sale of products.
A study by Boston Consulting Group showed that 81 percent of TikTok users in the Asia-Pacific region said its video content affects their shopping decisions.