Developing and managing the livestream industry in Vietnam

DNHN - Livestreaming activities emerged years ago as a new online phenomenon and surged during the Covid-19 pandemic. How to manage the livestream industry effectively remains a crucial question.

With the widespread availability of the internet and increasing network speeds, the livestream industry has become a rapidly growing sector in Vietnam. Livestreaming allows users to share a variety of content, such as events, tutorials, conversations, and reach a large audience directly. This has created new opportunities for businesses and individuals to access markets and develop their ventures. However, managing and developing the livestream industry in Vietnam requires reasonable solutions and regulations.

One of the essential elements for managing the livestream industry is establishing a clear regulatory framework. Setting regulations on copyright, privacy, consumer protection, and advertising is necessary to ensure transparency and fairness in livestream activities. These regulations need to be updated and adjusted regularly to keep pace with the rapid development of technology and the market.

Creating a fair competitive environment is also vital. Developing mechanisms that provide equal opportunities for all individuals and businesses wanting to participate in the livestream industry is crucial. This could include creating a level playing field where newcomers can easily access audiences without facing unfair competition from larger competitors.

Investing in infrastructure and technology is another critical factor in developing the livestream industry. Ensuring a robust network system and infrastructure to meet the increasing demands of users is essential. Additionally, enhancing video and audio quality and developing new technologies such as 360-degree live streaming and virtual reality will improve user experience and attract audience interest.

Finally, raising user awareness and providing training also play crucial roles in managing the livestream industry. 

Recently, at the Vietnam E-commerce panorama forum, Ms. Le Minh Trang from NielsenIQ shared survey information indicating that 64% of livestream viewers are more likely to make impulse purchases, and 78% of customers learn about products through livestream sales.

AccessTrade Vietnam reported that the three most popular livestream sales platforms in Vietnam are Facebook (31.9%), Shopee (30.9%), and TikTok (17.2%). On average, about 2.5 million direct sales sessions are conducted each month, involving over 50,000 sellers.

A report by Coc Coc on New consumer trends in Vietnam also highlighted the significant impact of livestream sales. The report noted that 77% of people have watched livestream sales, with 71% having made purchases during the livestream. This trend is particularly prevalent among Millennials (67%) and Gen Z (51%), representing the main force behind this shopping trend.

Nielsen predicts that by 2025, the Gen Z population in Vietnam will reach nearly 15 million, accounting for 21% of the labor force and over 30% of the online audience. This demographic is the primary target for livestream platforms and entertainment commerce trends, with expected explosive growth in the near future. Businesses and major brands have recognized the significant role and potential of livestreaming in business and marketing.

Mr. Tran Le Nguyen, CEO of KIDO Group, stated that the company has significantly shifted from traditional sales to focusing on livestream and online sales channels. This shift has helped reduce intermediary costs and expenses related to logistics, marketing, and sales. The appeal of discounts and vouchers from online sales platforms has attracted consumer interest, making online shopping a preferred choice.

"Recently, we have made a strong shift towards online business, with online sales now accounting for nearly 70% of total sales. On Shopee, our business has risen to the top 3 positions. Despite global economic challenges, the e-commerce market continues to grow annually by about 20-30%. This is an undeniable trend, requiring businesses to adapt to avoid falling behind", Mr. Nguyen shared.

Dai Hai