Sales on TikTok Shop hit VND18.36 trillion (US$722.7 million) last quarter, some three times the VND6 trillion ($236 million) turnover generated by Lazada in Vietnam, according to a report on the Q1 revenues of e-commerce platforms in Vietnam published by Ho Chi Minh City-based e-commerce data analysis firm YouNet ECI.

TikTok Shop’s revenue increased 15.5 percent over the final quarter of 2023 and accounted for 23.2 percent of the e-commerce market share in Vietnam, while Lazada commanded a market share of 7.6 percent.

Shoppe remained the largest e-commerce platform in Vietnam in the first quarter of this year with revenue reaching VND54 trillion ($2.1 billion) or 67.9 percent of the total market share.

Meanwhile, Tiki came in fourth with VND997.06 billion ($39 million).

In total, the four platforms fetched VND79 trillion ($3.1 billion) in the first three months of the year, falling 16 percent over the previous quarter, with some 768 million products sold.

YouNet ECI’s report also revealed that the number of traders on TikTok Shop was higher than those on Lazada, at 121,000 and 115,000, respectively.

More than 13,000 new traders joined TikTok Shop Malls between December last year and March this year.

According to YouNet ECI, most commodities saw their transaction values fall in the period. The most vulnerable were electric appliances, household appliances, and tech products, with respective declines of 28.4, 16.3, and 15.8 percent.

On the other hand, fashion accessories and beauty care products reported the highest revenues, at VND23.4 trillion ($921 million) and VND12.7 trillion ($500 million), respectively.

At the TikTok Shop Summit 2024 in Ho Chi Minh City on April 11, YouNet ECI forecast Vietnam’s e-commerce to grow an average 25 percent per year to hit $16.8 billion by 2025.

Nguyen Phuong Lam, head of the market research unit at YouNet ECI, said TikTok Shop’s growth given the Shoppertainment model would be the main driving force of Vietnam’s e-commerce development by 2025.

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