emarketer- vietnam online digital usage and behavior (2015-2020)

VIETNAM ONLINEDigital Usage and Behavior, 2015-2020NOVEMBER 2016

Rahul Chadha

Contributor: Dustin Sodano

Read this on eMarketer for iPad

https://itunes.apple.com/us/app/emarketer/id611556300



VIETNAM ONLINE: DIGITAL USAGE AND BEHAVIOR, 2015-2020 ©2016 EMARKETER INC. ALL RIGHTS RESERVED 2

VIETNAM ONLINE: DIGITAL USAGE AND BEHAVIOR, 2015-2020

Vietnam’s young population and low service costs help give the country a higher internet penetration rate than

most of its neighbors in Southeast Asia. Usage of smartphones and related activities, including use of social media

and messaging apps, are also fairly high.

■ In 2016, more than half of the country will access the internet at least once a month—a higher rate than in India, Indonesia and Thailand.

■ According to Nielsen, internet users in Vietnam spend nearly 25 hours per week online. This is high compared with elsewhere in Southeast Asia.

■ One poll found that mobile phones are the most common device used to access the web in Vietnam, employed by 85% of internet users ages 15 to 49. Nearly three-quarters (73%) used laptops.

■ More than one-third of Vietnam’s population are social network users. By 2020, that figure will approach half (46.7 million). Smartphones, used by 38.3% of adults at least monthly, are a main reason behind social networking’s growth.

■ Messaging apps are even more popular. One survey found that 74% of smartphone users used a messaging service more than once per week, while only 60% had used social media apps.

■ Retail ecommerce sales, excluding travel, will total $1.71 billion in 2016, accounting for just 1.1% of total retail sales in Vietnam. By 2020, that figure will expand to only 1.5%.

■ Purchasing online video is not yet very common. One poll found that only 13% of internet users in Vietnam had paid for an online video provider. By comparison, 78% had paid for cable TV and 40% had paid for satellite TV.

■ Online video viewers have one destination that stands out from the rest: YouTube.

WHAT’S IN THIS REPORT? This report looks at some of the most crucial aspects of Vietnam’s digital usage and behavior, including internet penetration, smartphones and social networks, messaging apps, ecommerce and video.

% of respondents

Average Daily Time Spent Online Among InternetUsers in Vietnam, 2015

<3 hours7%

3-5 hours26%

5-7 hours32%

7-9 hours15%

9+ hours20%

Note: n=967 ages 15-49Source: Vietnam Ecommerce and Information Technology Agency (VECITA),"2015 Vietnam Ecommerce Report," April 15, 2016210076 www.eMarketer.com

KEY STAT: Internet users in Vietnam tend to spend a great deal of time online. In 2015, 58% of users spent an average of 3 to 7 hours daily online, while 20% spent 9 or more hours on the web.

CONTENTS2 Vietnam Online: Digital Usage and Behavior, 2015-2020

3 Vietnam’s Internet Penetration Is Driven by Mobile Phones

4 Smartphone Users Gravitate to Social Networks

6 Messaging Apps Appeal to the Price Conscious

7 Local and Regional Players Rule Ecommerce

10 Paying Customers Still Prefer Cable and Satellite over Video-on-Demand

12 eMarketer Interviews

12 Related eMarketer Content

12 Related Links

12 Editorial and Production Contributors


VIETNAM’S INTERNET PENETRATION IS DRIVEN BY MOBILE PHONES

Vietnam has one of the higher internet penetration

rates in Southeast Asia thanks to a young population

and low access costs. eMarketer estimates that this

year, for the first time, more than half of the country’s

population (50.6%) will access the internet at least

once a month. That puts its penetration rate above

India, Indonesia and Thailand. The number of internet

users in the country is expected to grow from

48.2 million in 2016 to 61.7 million in 2020, when the

penetration rate will reach 62.5%.

Vietnam’s internet growth is complicated by the active role the government plays in regulation. While the economic reforms begun by the government in 1986—known collectively as Doi Moi—have liberalized the country’s economy, the government still monitors online content and suppresses anything deemed subversive. While the level of control over the internet in Vietnam does not approach that seen in China, the country’s two largest internet service providers, Viettel and Vietnam Post and Telecommunications (VNPT), are state-run entities.

However, these controls have not tempered residents’ interest in accessing the internet. According to November 2015 data from Nielsen, internet users in Vietnam spent an average of 24.7 hours per week online, tying them with internet users in the Philippines, and trailing only internet users in Singapore, a country with a much more robust internet infrastructure.

hours

Weekly Time Spent Online According to InternetUsers in Select Countries in Asia-Pacific, Nov 2015

Singapore 25.9

Philippines 24.7

Vietnam 24.7

Hong Kong 24.4

Malaysia 24.2

India 24.1

Taiwan 23.0

Indonesia 20.3

Thailand 19.5

Note: n=1,000 ages 16+ in each countrySource: Nielsen, "Cross-Platform Insights Report 2015" as cited in pressrelease, June 21, 2016212518 www.eMarketer.com

The amount of time internet users spend online daily was also substantial. According to the Vietnam Ecommerce and Information Technology Agency (VECITA), only 7% of internet users in Vietnam spent an average of 3 hours or less online each day in 2015, while 58% spent between 3 and 7 hours.

% of respondents

Average Daily Time Spent Online Among InternetUsers in Vietnam, 2015

<3 hours7%

3-5 hours26%

5-7 hours32%

7-9 hours15%

9+ hours20%


For consumers in Vietnam, the route to the internet will increasingly run through mobile devices. VECITA also reported that in 2015 mobile phones surpassed laptops as the device most commonly used to access the internet: 85% of internet users ages 15 to 49 said they relied on mobile phones to get online, while 73% of respondents used a laptop.


% of respondents

Devices Used to Access the Internet Among InternetUsers in Vietnam, 2014 & 2015

Laptop75%

73%

Mobile phone65%

85%

Desktop33%

38%

Tablet19%

19%

2014 2015


Internet access via mobile phones will continue to grow in part due to the continued adoption of smartphones in Vietnam. eMarketer estimates that the number of smartphone users in the country will increase from 36.5 million, or 38.3% of the population, this year to 58.4 million users in 2020, when they will account for 59.2% of residents.

Mobile Phone* and Smartphone** Users in Vietnam,2015-2020

Mobile phone users* (millions)

—% of population

—% change

Smartphone users** (millions)

—% of population

—% of mobile phone users

—% change

2015

57.1

60.5%

4.4%

27.2

28.8%

47.6%

40.4%

2016

59.2

62.1%

3.7%

36.5

38.3%

61.7%

34.4%

2017

61.0

63.5%

3.1%

43.7

45.5%

71.6%

19.8%

2018

62.9

64.8%

3.1%

49.5

51.0%

78.7%

13.3%

2019

64.5

65.9%

2.6%

54.5

55.6%

84.4%

10.1%

2020

65.9

66.8%

2.2%

58.4

59.2%

88.6%

7.3%

Note: *individuals of any age who own at least one mobile phone and usethe phone(s) at least once per month; **individuals of any age who own atleast one smartphone and use the smartphone(s) at least once per monthSource: eMarketer, Sep 2016215558 www.eMarketer.com

A May 2016 survey of smartphone users in Asia-Pacific from research firm GfK found that 81% of respondents in Vietnam used their devices to access the internet daily. That figure was higher than the one reported for Japan, India and Australia, underscoring just how fundamental smartphones have become to gaining internet access in Vietnam.

SMARTPHONE USERS GRAVITATE TO SOCIAL NETWORKS

Internet users, particularly those on advanced

handsets, have been quick to join social networks.

eMarketer estimates that 35.8 million people in

Vietnam will be social network users in 2016, or 37.6%

of the population. By 2020, those figures will climb to

46.7 million people and a penetration rate of 47.3%.

Social Network Users and Penetration in Vietnam,2015-2020

2015 2016 2017 2018 2019 2020

Social network users (millions) 32.3 35.8 39.1 42.1 45.1 46.7

—% change 13.8% 10.9% 9.2% 7.8% 6.9% 3.6%

—% of internet users 72.7% 74.2% 75.1% 75.5% 75.6% 75.7%

—% of population 34.2% 37.6% 40.7% 43.4% 46.0% 47.3%

Note: internet users who use a social network via any device at least onceper monthSource: eMarketer, Nov 2016218574 www.eMarketer.com

Kantar Media Vietnam (KMV) found that 80% of internet users ages 15 to 54 in urban areas in Vietnam polled in 2015 used social networks, making it the most popular internet activity in the survey, tied with visiting news websites.

% of respondents

Leading Internet Activities Among Internet Users inVietnam*, 2015

Access news websites 80%

Social network use 80%

Instant messaging 72%

Listen to music online 69%

Online newspaper 68%

Find information 62%

View video clip 47%

Send/receive emails 39%

Watch TV shows 34%

Academic/research 33%

Note: n=5,775 ages 15-54; *urban areasSource: Kantar Media Vietnam (KMV), "Vietnam Media Habit Survey," May 5,2016210817 www.eMarketer.com


Smartphones will play a key role in facilitating access to social networks among internet users. Research from W&S Group found that social media app use was already deeply entrenched in the behavior of smartphone users in Vietnam, a mobile-first market. According to a poll of smartphone app users in Vietnam conducted by W&S Group in March 2016, 84.1% of respondents opened a social networking app daily.

% of respondents

Frequency with Which Smartphone Social Media AppUsers in Indonesia, Thailand and Vietnam UseSmartphone Social Media Apps, March 2016

Indonesia Thailand Vietnam

Daily 80.9% 86.9% 84.1%

5-6 times per week 10.7% 7.7% 8.5%

3-4 times per week 3.9% 3.0% 3.0%

1-2 times per week 2.2% 1.5% 3.6%

Less than once per week 2.4% 0.9% 0.8%

Note: Indonesia n=460; Thailand n=465; Vietnam n=504; ages 17+;respondents referred to their most used social media apps in the past 30days; numbers may not add up to 100% due to roundingSource: W&S Group, "Tracking Study on Smartphone Applications," May 11,2016210840 www.eMarketer.com

In addition, W&S Group reported that 84.0% of smartphone users in Vietnam had opened a social networking app sometime in the 30 days preceding its March 2016 poll. That put social networking apps ahead of other app categories in the poll, including games, music, and photo and video apps.

Facebook has already established a strong presence in Vietnam, with an estimated 91.5% of all social network users in the country accessing the platform in 2016. eMarketer projects the number of Facebook users in Vietnam will increase from 32.7 million this year (34.4% of the population) to 43.5 million (44.1%) in 2020.

Facebook Users and Penetration in Vietnam,2015-2020

2015 2016 2017 2018 2019 2020

Facebook users (millions) 29.4 32.7 36.0 39.0 41.9 43.5

—% change 14.5% 11.5% 9.8% 8.4% 7.5% 3.8%

—% of social network users 91.0% 91.5% 92.0% 92.5% 93.0% 93.2%

—% of internet users 66.2% 67.9% 69.1% 69.8% 70.3% 70.5%

—% of population 31.1% 34.4% 37.4% 40.2% 42.8% 44.1%

Note: internet users who access their Facebook account via any device atleast once per monthSource: eMarketer, Nov 2016218786 www.eMarketer.com

Facebook’s dominance over competing social networks in Vietnam also extends to smartphones. According to We Are Social, Facebook’s social media app had a penetration rate of 29% among the overall population as of Q4 2015, putting it ahead of local chat app Zalo, Google+, Line, Twitter and Instagram, among other social media and messaging platforms.

% of population

Social Media/Messaging App User Penetration inVietnam, by Platform, Q4 2015

Facebook 29%

Zalo 25%

Facebook Messenger 25%

Google+ 20%

Skype 15%

Viber 11%

Line 10%

Twitter 9%

Instagram 9%

WhatsApp 6%

Source: We Are Social, "Digital in 2016," Jan 27, 2016204245 www.eMarketer.com

While Facebook has experienced success in capturing market share, its gains also face a potential threat. Vietnam’s government has shown a willingness to block the platform at moments of political unrest, as when protesters gathered for rallies in May 2016 following mass fish deaths attributed to pollution released into waters from a plastics manufacturing company.

While Facebook once faced competition from local upstart Zing Me, the latter was unable to keep pace with the innovations offered by Mark Zuckerberg’s company, and was eventually abandoned by users. Now Facebook is the clear leader in Vietnam, with a penetration rate that will be hard for competitors to reach or even approach.


MESSAGING APPS APPEAL TO THE PRICE CONSCIOUS

In Vietnam, messaging apps are broadly adopted by

smartphone users for a simple reason—they provide

users with over-the-top (OTT) services that allow

customers to avoid sometimes costly texting services

provided by mobile network operators.

The GfK survey found that 74% of smartphone users in Vietnam used a messaging service more than once per week, a higher figure than those who used either social media (60%) or shopping apps (31%).

% of respondents

Smartphone Users in Asia-Pacific Who UseSmartphone Messaging, Social Media and ShoppingApps Regularly*, by Country, May 2016

Messaging Social media Shopping

Australia 70% 63% 21%

China 79% 70% 48%

India 82% 81% 54%

Indonesia 83% 86% 35%

Japan 39% 47% 15%

Singapore 82% 76% 37%

Thailand 55% 82% 32%

Vietnam 74% 60% 31%

Note: n=8,099 ages 18+; *more than once per weekSource: GfK, "The Connected Consumer: Insights into Digital ConsumerBehavior in APAC," June 22, 2016213791 www.eMarketer.com

Messaging app users in Vietnam have embraced local platform Zalo in a market that is now crowded with international competitors. According to DI Marketing, 80% of smartphone users polled in June 2016 had Zalo installed on their devices, more than the 73% who had installed Facebook Messenger. Global messaging giants WeChat and WhatsApp barely registered among smartphone users in Vietnam, with install rates of 5% and 4%, respectively.

% of respondents in each group

Messaging Apps that Smartphone Users in VietnamHave Installed on Their Smartphone, by Age, June 2016

18-25 26-30 30-35 35+ Total

Zalo 80% 83% 81% 71% 80%

Facebook Messenger 78% 72% 75% 55% 73%

Viber 33% 43% 51% 51% 40%

Skype 37% 40% 41% 23% 37%

Line 21% 18% 15% 11% 18%

Yahoo 9% 11% 16% 13% 11%

Tango 7% 10% 11% 13% 9%

WeChat 4% 7% 8% 2% 5%

WhatsApp 4% 4% 5% 3% 4%

KakaoTalk 3% 3% 4% 1% 3%

BeeTalk 3% 1% 3% 1% 2%

Snapchat 2% 1% 3% 2% 2%

Other 1% 3% 1% 1% 2%

Note: n=1,200Source: DI Marketing, "Chat Apps Usage in Vietnam," June 10, 2016212098 www.eMarketer.com

Zalo’s parent company, VNG, reported in April 2016 that its messaging app had 50 million registered users. Despite its near ubiquity among smartphone users in Vietnam, Zalo still faces a formidable opponent in Facebook Messenger, which had nearly the same install rate as Zalo among those ages 18 to 25, according to DI Marketing.

In addition, We Are Social data cited earlier found that Zalo and Facebook Messenger had the same install rate, 25%, among smartphone users in Vietnam as of Q4 2015.

Zalo has benefitted from a lack of strong competition from regional messaging platforms like Line and Kakao Talk. This is partly due to resistance among consumers to digital payment systems. In underbanked Vietnam, consumers still rely on cash to pay for most goods and services. While Facebook generates its revenues largely through advertising, platforms like Line and Kakao Talk are heavily reliant on in-app purchases made using digital payment systems, which are not yet widely adopted in Vietnam.

The use of messaging apps in Vietnam is not a zero-sum game, with a majority of end-users installing a number of apps that provide essentially the same service. According to DI Marketing, 89% of messaging app users in Vietnam used more than one messaging app.


% of respondents

Number of Messaging Apps Used by SmartphoneMessaging App Users in Vietnam, by Age, June 2016

18-2510% 15% 30% 34% 11%

26-307% 33% 25% 18% 16%

30-3512% 30% 21% 24% 14%

35+24% 35% 26% 9% 6%

Total12% 33% 27% 17% 12%

1 2 3 4 5+

Note: n=1,200; via smartphone; numbers may not add up to 100% due toroundingSource: DI Marketing, "Chat Apps Usage in Vietnam," June 10, 2016212097 www.eMarketer.com

The market for messaging apps was most fragmented at the younger end, with 45% of respondents ages 18 to 25 using four or more messaging apps. In fact, the research showed that those under 35 were using only one app in significantly smaller numbers than those who were 35 or older.

LOCAL AND REGIONAL PLAYERS RULE ECOMMERCE

Ecommerce has yet to take off in Vietnam. eMarketer

anticipates retail ecommerce sales, excluding travel,

will total $1.71 billion in 2016, accounting for only

1.1% of the $161.16 billion in total retail sales.

Retail ecommerce sales in Vietnam will total $3.26 billion by 2020, constituting 1.5% of all retail sales, eMarketer estimates.

billions, % change and % of total retail sales

Total Retail and Retail Ecommerce* Sales in Vietnam,2015-2020

Total retailsales

—% change

Retailecommerce* sales

—% change

—% of totalretail sales

2015

$147.99

9.9%

$1.37

43.5%

0.9%

2016

$161.16

8.9%

$1.71

24.3%

1.1%

2017

$174.37

8.2%

$2.08

22.0%

1.2%

2018

$187.45

7.5%

$2.47

18.5%

1.3%

2019

$200.57

7.0%

$2.88

16.8%

1.4%

2020

$213.61

6.5%

$3.26

13.2%

1.5%

Note: converted at the exchange rate of US$1=VND21,913.7; excludestravel and event tickets; *includes products or services ordered using theinternet via any device, regardless of the method of payment or fulfillmentSource: eMarketer, Aug 2016213220 www.eMarketer.com

VECITA reported that ecommerce revenue in 2015 had totaled $4.07 billion, an increase of 37% from the previous year.

The country’s ecommerce landscape is dominated by local and regional players. Lazada Vietnam, which is majority-owned by China’s Alibaba Group and carries its own inventory and serves as a marketplace, ranks among the top players in the country. According to SimilarWeb, Lazada Vietnam recorded the highest number of monthly page views in Vietnam in August 2016 at 24.5 million. That put it ahead of consumer electronics retailer The Gioi Di Dong, business-to-consumer (B2C) platform Tiki.vn, online retailer Sendo.vn and several others.


millions

Leading B2C Ecommerce Sites in Vietnam, Ranked byMonthly Page Views, Aug 2016

Lazada Vietnam 24.5

The Gioi Di Dong 17.1

Tiki.vn 11.7

Sendo.vn 10.7

Vatgia.com 10.4

Fptshop 7.7

Hotdeal3.2

Nguyenkim.com3.2

Lozi 2.4

Phongvu1.5

Note: represents activity tracked by SimilarWeb, broader industry metricsmay varySource: SimilarWeb as cited by ecommerceIQ, Sep 27, 2016217789 www.eMarketer.com

According to data from DI Marketing, advanced handsets have still not yet displaced desktops and laptops. Its August 2016 survey of digital buyers in Vietnam found that 75% of respondents used a PC to make a purchase, while 51% used a smartphone and 21% used a tablet.

% of respondents

Devices Used for Digital Purchases by Digital Buyersin Vietnam, Aug 2016

Desktop/laptop 75%

Smartphone 51%

Tablet 21%

Note: n=565Source: DI Marketing, "Study About Online Shopping Behavior in Vietnam,"Sep 12, 2016216713 www.eMarketer.com

However, there are signs that advanced handsets are making inroads among digital buyers in Vietnam. Tran Hai Linh, CEO of Sendo.vn, said in June 2016 that 75% of its customers accessed the site by smartphone.

The growth of mcommerce in Vietnam is also in line with wider regional trends. Online marketing services provider Criteo found that mobile transactions made up 54% of all digital ecommerce transactions in Southeast Asia in Q2 2016, an increase from 39% in Q4 2015.

VECITA found that 64% of digital buyers in Vietnam had purchased soft goods and cosmetics digitally in 2015, making them the most popular product category for ecommerce. Consumer electronics ranked second (56%), followed by kitchen and other home appliances (49%).

% of respondents

Product/Service Categories Purchased Digitally byDigital Buyers in Vietnam, 2015

Clothing, shoes, cosmetics64%

Tech/electronics56%

Kitchen and home appliances49%

Books, stationery, gifts, flowers42%

Travel (airfare, train ticket)34%

Food33%

Movie or concert tickets22%

Hotel bookings, tours19%

Education/business services7%

Music/videos/DVDs/games7%

Spa and beauty services6%

Other2%

Note: ages 15-49Source: Vietnam Ecommerce and Information Technology Agency (VECITA),"2015 Vietnam Ecommerce Report," April 15, 2016210032 www.eMarketer.com

DIGITAL BUYERS ATTACHED TO CASH ON DELIVERY In Vietnam, cash on delivery (COD) remains a favored payment method among consumers, especially in urban areas.

According to a July 2016 survey of digital buyers living in urban Vietnam conducted by Q&Me, 85% of respondents used COD as their main payment method for digital purchases. Bank transfers were the primary payment method for 8% of those polled, while only 6% said they relied on debit or credit cards, a reflection of the low penetration rate of payment cards in the country.


% of respondents

Primary Payment Method Used for Digital PurchasesAccording to Digital Buyers in Urban Vietnam*, July 2016

Cash on delivery85%

Banktransfer 8%

Credit card/debit card6%

Note: numbers may not add up to 100% due to rounding; *Hanoi and HoChi Minh CitySource: Q&Me, "Vietnam Ecommerce Market Survey," July 19, 2016214693 www.eMarketer.com

Similarly, VECITA reported that 91% of digital buyers in Vietnam had used COD to complete an ecommerce transaction in 2015, an increase from 64% in 2014. Digital buyers’ use of ewallets actually declined from 37% to 11% over the same time period, while bank transfers were used by 48% of buyers in 2015, up from 14% the year before.

% of respondents

Payment Methods Used for Ecommerce TransactionsAccording to Digital Buyers in Vietnam, 2014 & 2015

Cash on delivery64%

91%

Ewallet37%

11%

Bank transfer14%

48%

Scratch cards11%

6%

Payment card (credit, debit, gift, etc.)7%

20%

Other1%

1%

2014 2015

Note: ages 15-49Source: Vietnam Ecommerce and Information Technology Agency (VECITA),"2015 Vietnam Ecommerce Report," April 15, 2016210079 www.eMarketer.com

Vietnam is similar to India in its adherence to COD as a preferred payment method. As in India, consumers have little incentive to switch over to other payment methods, with many services accepting cash as a matter of course. “Even if I want to pay my electricity bill, someone comes around and collects cash,” said Richard Burrage, managing partner at Vietnam-based market research firm Cimigo. Furthermore, COD also makes it easier to refuse an order once it arrives. “If I do some shopping online, I’ll pay them in cash. All of the fears of online shopping are dispersed; if I don’t like it, I can turn it away,” said Burrage.

The ability of consumers to inspect goods purchased online before paying has alleviated some of the trust issues related to the nascent ecommerce market in Vietnam, but it has also provided an incentive for vendors and third-party logistics providers to keep the cost of COD free or low. And when costs related to COD purchases are incurred, they are usually shouldered by the merchant. In addition, merchants and consumers prefer cash payments because it’s easier for such transactions to remain off the books, thus avoiding taxes.

Bank cards are rarely used to buy goods or services thanks to the combination of an underbanked populace and a dearth of point-of-sale (POS) terminals for offline purchases. The government in Vietnam has moved in recent years to encourage consumers to move toward payment methods other than cash by establishing new regulations for digital payments.

Still, much work remains to be done if vendors are going to start accepting more payment methods. According to a November 2015 survey of businesses in Vietnam by the Vietnam Ecommerce Association (VECOM), nearly all (97%) respondents accepted bank transfers, while only 16% accepted payment cards, a category that included credit and debit cards. Only 4% accepted digital wallets.

% of respondents

Noncash Payment Methods Accepted by Businessesin Vietnam, Nov 2015

Bank transfer 97%

Payment card*16%

Digital wallet4%

Scratch card**2%

Note: n=4,735; *includes all types of payment cards (credit, debit, gift, etc.);**type of preloaded payment cardSource: Vietnam Ecommerce Association (VECOM), "Viet Nam E-BusinessIndex 2015," Feb 1, 2016205474 www.eMarketer.com


The digital wallet sector in Vietnam remains fractured. Online newspaper VietnamNet reported in August 2016 that there were 16 digital wallets in operation in the country as of May 2016, but many of them had been developed by ecommerce platforms and worked solely on those websites. In order for digital payment methods like mobile wallets to catch on in Vietnam, they will have to provide a greater range of service options for consumers.

PAYING CUSTOMERS STILL PREFER CABLE AND SATELLITE OVER VIDEO-ON-DEMAND

Despite the emergence of various video-on-demand

(VOD) platforms in Vietnam, paying for online video

services has not yet become a widespread behavior

among consumers there.

A September 2015 poll of internet users in the country conducted by Nielsen found that only 13% of respondents paid for an online video service provider. Cable TV remained the dominant mode of pay TV, used by 78%, while 40% paid for satellite TV.

% of respondents

Internet Users in Vietnam Who Currently Pay forSelect TV/Video Services, Sep 2015

Cable provider 78%

Satellite provider 40%

Online service provider13%

Other7%

None of these4%

Source: Nielsen, "Global Video-on-Demand Survey" as cited in pressrelease, March 18, 2016210113 www.eMarketer.com

Despite the uphill battle online video services face from traditional TV platforms, digitally savvy consumers are turning to online resources in search of more and different programming, as well as the freedom offered by on-demand services, according to data from Nielsen’s November 2015 study.

“Consumers are exercising their choice of how, when and where they can obtain their content and are more active in their media habits than ever before,” said Doan Duy Khoa, director of consumer insights for Nielsen Vietnam.


YOUTUBE ECLIPSES THE COMPETITION Among those who have embraced online video, YouTube has emerged as a favorite destination. The adoption of YouTube by video viewers in Vietnam makes sense given the platform’s ad-supported model, which gives consumers resistant to paying for videos access to free content.

According to data from comScore Video Metrix, Google sites (a category that mainly refers to YouTube) had the most unique viewers of any online video property in Vietnam in March 2016, with 15.4 million.

millions

Top 10 Online Video Properties Among Internet Usersin Vietnam, Ranked by Unique Viewers, March 2016

1. Google sites* 15.4

2. BroadbandTV 12.5

3. QuizGroup 10.0

4. BlueSeed Digital 7.2

5. Facebook 6.8

6. Maker Studios 6.1

7. Fullscreen 6.0

8. Coc Coc 5.9

9. Videology 5.8

10. Warner Music 4.8

Note: home and work locations; includes ad and content video streaming;*mainly refers to YouTubeSource: comScore Video Metrix, May 19, 2016211295 www.eMarketer.com

comScore’s data included a litany of online video content studios that largely publish their work on YouTube, such as BroadbandTV, Maker Studios and Fullscreen. But it also included Facebook, which garnered 6.8 million views in the month, as well as Vietnam-based web browser Coc Coc (5.9 million).

Similarly, the November 2015 Nielsen data found that YouTube was the most popular platform among VOD viewers in Vietnam. In fact, 97% of respondents used YouTube, while 81% used Facebook. Local platform NhacCuaTui.com was also a favorite, used by 56% of those polled.

% of respondents

Top 3 Video-on-Demand (VOD) Platforms According toVOD Viewers in Vietnam, Nov 2015

1. YouTube 97%

2. Facebook 81%

3. NhacCuaTui.com 56%

Note: ages 16+Source: Nielsen, "Cross-Platform Insights Report 2015" as cited in pressrelease, June 21, 2016212515 www.eMarketer.com

Although it did not register on either Nielsen or comScore’s list of top online video properties, Netflix has been available in Vietnam since January 2016. However, the subscription-based service suffers from a lack of localized content and the absence of Vietnamese subtitles for much of its nonlocal content.


EMARKETER INTERVIEWS

Marketing in Asia-Pacific: Millennials in Vietnam Are Social, Skeptical and Seeking Role Models

Richard Burrage Managing Partner

Cimigo Interview conducted on April 20, 2016

RELATED EMARKETER CONTENT

Digital Usage in Southeast Asia: Vietnam

Global Millennials 2016: Gauging the Digital Behavior of Young Adults Around the World

Mobile Commerce in Vietnam: An Early Picture

Retail Ecommerce Sales in Southeast Asia: Opportunities and Challenges for Six Key Markets

Social Network Users: Vietnam

RELATED LINKS

comScore Inc.

Criteo

DI Marketing

GfK

Kantar Media Vietnam (KMV)

Nielsen

Q&Me

SimilarWeb

Vietnam Ecommerce Association (VECOM)

Vietnam Ecommerce and Information Technology Agency (VECITA)

W&S Group

We Are Social

EDITORIAL AND PRODUCTION CONTRIBUTORS

Cliff Annicelli Managing Editor, ReportsMichael Balletti Copy EditorJoanne DiCamillo Senior Production ArtistDana Hill Director of ProductionEden Kelley Chart EditorStephanie Meyer Senior Production ArtistKris Oser Deputy Editorial DirectorHeather Price Senior Copy EditorJohn Rambow Executive Editor, ReportsAllie Smith Director of Charts

http://totalaccess.emarketer.com/Interview.aspx?R=6001998

http://totalaccess.emarketer.com/Interview.aspx?R=6001998

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