Introduction
SNS marketing has become an indispensable part of selling goods in the Vietnamese market.
Vietnam’s recent economic growth and rising incomes have attracted attention to the expansion of the consumer market. Vietnam is also undergoing urbanization, and 4G signals are available throughout the country. The country also has one of the world’s top 10 smartphone penetration rates, as will be discussed in more detail later in this report.
In such recent years, social network marketing has become very active in Vietnam, coupled with the characteristics of the country’s young generation.
This report introduces SNS marketing in Vietnam. It comprehensively deals with Vietnam’s telecommunication environment, statistics and actual conditions of SNS users, and characteristics of Vietnamese people in SNS use.
Telecommunications Environment in Vietnam
In Vietnam, 4G signals are available in all 63 provinces and cities. The 4G coverage rate in urban areas reaches 99%.
This chapter presents the Internet and smartphone penetration in Vietnam.
Internet Penetration in Vietnam
Internet penetration in Vietnam is 68.7%. (as of 2019)
This is above the global average of 51.4%. It is also lower than the developed G7 countries (86.7%), but considerably higher than developing countries (44.4%) and Asia-Pacific countries (44.5%).
According to Vietnam’s Ministry of Information and Communication, Vietnam’s Internet penetration rate is among the top 20 countries in the world.
Smartphone Penetration Rate in Vietnam
The smartphone penetration rate in Vietnam is 64%.
More than 61.37 million people in Vietnam own smartphones as of 2020, placing Vietnam among the top 10 countries in the world with the highest smartphone penetration rate. Vietnam’s population will be approximately 97.34 million as of 2020.
In addition, overall cell phone penetration in Vietnam has reached 90%.
SNS Trends in Vietnam
In this chapter, we will introduce reports and survey results published by various organizations and companies on SNS in Vietnam. Based on them, we will analyze the characteristics of SNS use by Vietnamese.
Statistics on SNS Users
67% of the Vietnamese population uses SNS (also social media). Compared to the Internet penetration rate in Vietnam, this means that most Vietnamese citizens who use the Internet also use SNS or social media. These statistics are presented within We are social’s “Digital 2021 Vietnam” (data for 2020) report.
On average, Vietnamese spend about 6 hours and 30 minutes per day on the Internet. Of that time, they spend 2 hours and 22 minutes on SNS and 2 hours and 09 minutes watching videos. In other words, social networking and watching videos account for 70% of the time Vietnamese spend on the Internet.
The report also surveyed the most frequently used social networking functions by Vietnamese, and 97.6% said they “watch videos online,” with 61.2% saying they “watch Vlogs (Vlogs)*1 ” in particular.
1 “Vlog” is a coined word that is a contraction of “Video Blog,” and refers to videos that resemble blogs or diaries. Specifically, it refers to videos in which the filmmakers themselves are the main characters, and which are not overly elaborate in planning or editing, but rather capture the natural state of the filmmaker.
Facebook Dominates in Vietnam
Facebook has a dominant share of the Vietnamese SNS market (not including Zalo, which is similar to LINE in Japan). (Not including “Zalo”, which is similar to “LINE” in Japan)
Facebook is followed by YouTube, Twitter, Pinterest, and Instagram, which are also major social networking sites in Vietnam.
Mainstream SNS for Marketing in Vietnam
In this chapter, we will introduce the most popular social networking platforms in Vietnam. It will also analyze the strengths and weaknesses of each platform from a general Vietnamese perspective.
However, although platforms such as “Twitter” and “Pinterest” have a large number of users, they are less effective for marketing in Vietnam than other SNS. For this reason, we will only introduce the three most popular SNSs used for SNS marketing in Vietnam.
Facebook is the most popular social networking platform in Vietnam. In Vietnam, users of all ages and genders use Facebook (FB). One point that differs from Japan is that many Vietnamese use Facebook as an e-commerce platform.
Facebook Strengths in Vietnam
Facebook is recognized by most Vietnamese. It was the first social networking service that penetrated Vietnam, and most Vietnamese had formed the habit of using FB before.
FB includes features that Vietnamese people like. For example, group video calls, live-streaming, and matching functions are very useful for Vietnamese people’s daily life and work. And FB is almost the only social networking service that can provide these functions in the Vietnamese market.
FB also has e-commerce-like functions, and many Vietnamese are using FB’s marketplace and live-streaming to sell goods and services. In particular, Vietnamese self-employed people often use FB live-streaming to try out their products and attract customers.
Weaknesses of Facebook in Vietnam
In Vietnam, the image of Facebook has deteriorated in recent years. Globally, many FB users are paying attention to issues related to the handling of personal information, and Vietnam is no exception. In Vietnam, awareness of the need to protect personal information is gradually increasing, and many people have stopped using FB, which is based on the use of real names.
Approximately 11% of the Vietnamese population uses Instagram. For Vietnamese people, Instagram is commonly perceived as a social networking platform with “high-quality content and images”. In addition, many people use Instagram for the purpose of checking out photos and videos posted by celebrities.
Strengths of Instagram in Vietnam
- Young women are especially prevalent; NapoleonCat found that women users of Instagram account for 63% of all users, and that the 18-24 age group is the most prevalent.
- It is the social network where influencer marketing is most effective. Instagram’s agmented reality technology and enhanced filters are very useful features for influencer marketing.
- Hashtag function is highly effective for marketing. The hashtag function allows users to maintain sufficient contact with each other and with influencers and brands, which is considered highly effective for marketing.
- Currently, Instagram can link accounts with Facebook. Therefore, the number of cases where FB users also flow into Instagram is expected to increase in the future.
Weaknesses of Instagram in Vietnam
- It is difficult to post high-quality videos. The quality of photos posted on Instagram is relatively higher than other social networking sites, while the quality of videos posted by the general public is low. High-performance devices are needed to upload high-quality videos. In this respect, there is a concern about the case of lack of growth in marketing effectiveness.
- It is difficult to reach users. Instagram users often follow hundreds to thousands of accounts, and unless the account appears high in searches and recommendations within Instagram, it will not gain user recognition. Therefore, the risk exists that it will take time for marketing efforts to begin to be effective.
TikTok
TikTok, one of the most popular video posting platforms in the world today, is also very popular in Vietnam. Users can create short videos on the TikTok application and post them on the platform. Many companies and businesses in Vietnam are also using TikTok to attract online customers and conduct digital marketing.
Strengths of TikTok
A platform dedicated to short videos. Unlike YouTube, most videos posted on TikTok are short and have concise content. Therefore, the number of videos posted daily is much higher than on other platforms.
The number of users of TikTok (TikTok) in Vietnam is about 13 million in 2021, which is more than 10% of the population. The majority of these users are young people, making it suitable for reaching this demographic.
TikTokの弱み
- Few users are over 30 years old; most TikTok users are young people under 30 years old. There is a certain number of middle-aged Vietnamese who are uncomfortable with TikTok because they believe that all of its content is a youth trend. In addition, there is a tendency to not want to use TikTok, and companies marketing on social networking sites need to be very careful about this.
- The cost of operation is high because only video can be posted. Basically, it is easier to create images and text. It is very difficult for foreign companies seeking to enter Vietnam, for example, to continue to create videos that resonate with young Vietnamese.
- There is very little hard content. The fact that most people use TikTok for relaxation purposes is true not only in Japan but also in Vietnam. Therefore, there are only a limited number of commercial products that can be effectively marketed on TikTok. This is the opposite characteristic of Facebook, where there is a lot of knowledge-sharing content.
SNS Marketing Success Stories
This chapter introduces two successful examples of SNS marketing in Vietnam. However, these successful cases were not achieved simply by SNS marketing alone, but by combining the new means of SNS marketing with traditional means such as TV commercials, and by making good use of the advantages of each means.
Dien May Xanh” brand by The Gioi Di Dong Co.
The social network marketing conducted by The Gioi Di Dong in 2016 is recognized as the most successful social network marketing in Vietnam in recent years.
Dien May Xanh is an electronics retail chain operated by Vietnamese retail giant The Gioi Di Dong.
It is a rare and unusual thing to wear a costume and dance incessantly with a song. The lyrics of the song repeat a very simple message: “If you want to buy an appliance, come to Dien May Xanh.
The ads gained popularity on social networking sites such as Youtube ads, Facebook ads, etc., but the contribution of traditional TV commercials was also analyzed as essential.
ABA Laundry Powder Detergent (ABA)
ABA is the most popular brand of powdered laundry detergent in Vietnam.
ABA is marketing itself with so-called contrived promotional videos, several of which have been uploaded on its YouTube channel, the latest of which was posted on July 13, 2020. This video has been viewed more than 10 million times.
The video features two sisters arguing in a house, but this is a confusing conversation, a so-called “passing contrivance. At the end of the conversation, ABA detergent appears and the sisters reconcile. 1 minute and 3 seconds of the video is the contrived part, which has nothing to do with the product itself, and the remaining 3 seconds is the product introduction part.
This advertisement spread rapidly on social networking sites. Many comments were seen on the content of the ad, ranging from positive evaluations that it was funny to critical evaluations, creating a so-called “buzz” situation.
A video posted on ABA’s YouTube channel was quoted a lot on Facebook and Instagram, resulting in a very high number of views. In addition to this video, ABA has posted many other funny promotional videos.
Characteristics of Vietnamese SNS users
This chapter introduces the characteristics of Vietnamese SNS users.
Easily Influenced by Influencers
Vietnamese social networking users are very easily influenced by influencers. Marketing using influencers can be very effective. Many Vietnamese are in the habit of following the daily lives and activities of celebrities. Vietnamese consumers also have a preference to use the same products as celebrities.
This chapter also includes influencers who are particularly popular in Vietnam.
Son Tung MTP（Singer）
Son Tung MTP is one of the most popular entertainers in Vietnam.
His fan club has about 10,120,000 registered members. Not only good looking but also musical, Son Tung MTP won a European music award as the best singer in Southeast Asia; he is very young, born in 1994, and is especially popular among the majority in Vietnam. His YouTube channel has 9.75 million subscribers as of March 22, 2022.
Ho Ngoc Ha（Model and Singer）
Ms. Ho Ngoc Ha is a singer, actress, and fashion model, and has served on the evaluation committee for many music and fashion modeling contests. He is a very strong communicator on social networking sites. Most recently, on March 17, he posted a promotion for baby diapers on Facebook, which received approximately 3,000 likes. The post received approximately 3,000 “Likes”.
Ninh Duong Lan Ngoc
Ninh Duong Lan Ngoc is the most famous actor in Vietnam in recent years.
He is known for his beautiful appearance and outstanding acting. Meanwhile, Mr. Ngoc is also actively involved in popular Vietnamese variety shows such as “Chay Di Cho Chi” and “7 Nu Cuoi Xuan.
Ninh Duong Lan Ngoc is currently an ambassador for major brands such as Samsung and Heineken in Vietnam.
Vietnam National Soccer Team
The Vietnamese national soccer team has recently become a very popular influencer. Although soccer is also popular in Japan, it is divided into factions with baseball, with baseball receiving slightly more TV coverage.
The image of the national team is very positive in Vietnam, as the Vietnamese national under-20 soccer team reached the second place in the Asian Games.
For this reason, in recent years, major companies such as Shopee and Vinamilk have actively used the Vietnamese national soccer team in their marketing.
Using “ZALO” for Business Interactions
ZALO is the Vietnamese version of LINE. Many Vietnamese people believe that “ZALO is a Vietnamese company’s application, so it is safe from the viewpoint of information protection. Vietnamese people often use “ZALO” and “Facebook Messenger” for business communication, and the Vietnamese version of ZALO is more popular than the U.S.-based Messenger.
In recent years in Vietnam, when exchanging contact information with someone you have just met, “ZALO please” is becoming more common, rather than exchanging phone numbers as in the past. Because of this custom, it is already not uncommon for foreign companies to use ZALO in conjunction with Vietnamese companies when communicating with local Vietnamese companies.
Many Vietnamese SMEs had been using ZALO as a means of internal communication before Corona, as it is basically free of charge and includes necessary functions such as file storage and sharing.
Check News on SNS
Vietnamese have a habit of checking news through social networking sites such as Facebook. Therefore, many Vietnamese do not check electronic newspapers or news sites every day, but they definitely check Facebook every day. Therefore, there is a lot of information that Vietnamese people get from Facebook.
Taking advantage of this Vietnamese habit, advertising and marketing companies are nowadays often using SNS platforms to advertise and conduct other marketing activities in order to reach as many people as possible with the information they wish to advertise. On the other hand, because anyone can transmit information on SNS, information posted on SNS is generally viewed as less credible.
Live Commerce on Social Networking Sites Is Thriving.
In Vietnam, “live commerce” using the live distribution function of SNS is very active. Live commerce refers to the communication between the distributor (seller) and viewers (consumers) on live broadcasts, where the distributor introduces and tries out products, and the products are bought and sold. The image is similar to TV shopping, but differs in that it enables real-time communication through chat functions and other means. For example, if a viewer asks a question in the chat box, the distributor can respond on the spot.
Since many Vietnamese use social networking services, many individual stores and companies are implementing sales promotions through live broadcasts on social networking services. In Vietnam, there are many cases in which individual stores in particular have succeeded in increasing sales through live commerce.
This is because live-streaming on Facebook and other social networking sites requires no special preparation and allows a single person to effectively promote a product.
In Vietnam, many companies, from large to small, as well as individual stores, have recently begun to engage in live commerce.
Marketing through social networking sites has a lot of competition and is very difficult in itself, which is why some companies do not see results.
Particularly common failure factors may be that the posts do not generate brand-customer contact or that a specific and attractive marketing plan is not designed in the first place. Inappropriate social networking advertising often leads to a situation where consumers are “attacked”.
Expansion of Japanese Companies
For Japanese companies conducting SNS marketing in Vietnam, the most important thing is to understand the local market.
It is common for social networking sites, or even borderless Internet spaces, to develop a culture unique to that country, and Vietnam is no exception. Careful preliminary research should be conducted to understand the attitudes of Vietnamese consumers.
One of the advantages of Japanese companies is that the Japanese brand is already established in Vietnam. In Vietnam, “made in Japan” or “Japanese companies” are seen as trustworthy targets. Therefore, when Japanese companies conduct SNS marketing in Vietnam, it is essential to ensure that “reliability” and “safety” are not compromised.
Risks of SNS Marketing
In SNS marketing, internal changes in SNS specifications are a major risk, as most SNS marketing activities are heavily influenced by internal specifications, such as the policies of the SNS service provider and the display algorithms within the SNS. This is not limited to Vietnam.
For example, on Facebook, you must pay for advertising to reach potential customers, and you must also adhere to Facebook’s strict “community standards” for content management. s policies, and may be forcibly removed by Facebook. These rules required of users tend to be generally stricter in many social networking sites.
In addition, there are many basic aspects of the display algorithm for the “Recommendation column” and “Search Results” of each social networking service that are not known. Therefore, it is possible that a site that used to appear at the top of the list may no longer appear at the top after an update on a certain date.
Therefore, companies that implement SNS marketing always face the risk of frequent changes in policies and algorithms by SNS platform providers. Therefore, SNS marketing should be recognized as an effective marketing channel with a high degree of uncertainty.
Summary
The use of SNS is almost essential for marketing in Vietnam, and companies that understand how to use and know how to use SNS marketing can effectively achieve their marketing goals at a low cost.
Vietnam already has sufficient Internet and smartphone penetration, and about 70% of Vietnamese citizens use social networking services.
The most popular SNS in Vietnam is Facebook, which has a wide range of users, both young and old. Instagram and TikTok are also popular in Vietnam, as they are in Japan. ZALO” is the first SNS in Vietnam and is familiar with the same position as “LINE” in Japan.
Four characteristics of Vietnamese use of SNS were cited: “Influencers have a large influence,” “ZALO is also used for business communication,” “News is checked on SNS,” and “Live commerce is popular. Japanese companies entering Vietnam need to be fully aware of this. On the other hand, SNS marketing is always fraught with risk, so care must also be taken not to become dependent on it.
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