TikTok to cushion Vietnamese SMEs with million dollar investment
TikTok has announced that it will allocate $1 million in ad credits to support small and medium-sized enterprises (SMEs) in Vietnam in a move to promote their businesses and expand their reach on the video-sharing platform.
As part of the company's $12.2 million investment in supporting SMEs across Southeast Asia, TikTok will collaborate with government agencies, the committee of the "Vietnamese Prioritise Using Vietnamese Goods" campaign and partners to provide support ranging from $100 to $200 in advertising credits for each promotional video produced by partner organisations.
This was announced at the 2024 SMB Summit organised by TikTok in Ho Chi Minh City where SMEs connect to share business experiences and develop e-commerce activities last week.
Hưng Huỳnh, country head of SMB at TikTok Vietnam at the summit shared that the short video platform's aid was important because "While the online commerce market remains wide open, the business development potential of the SMB community has not been fully utilised, primarily due to limitations in human resources, tools, and digital transformation skills within businesses."
According to a report by Kantar Group -an international market research company- 98% of shoppers discover new brands or products through TikTok, and 72% of users make purchase decisions after seeing products on the platform.
Another study by Nielsen found that TikTok's return on ad spend (ROAS) ratio is twice as high as other media channels. With this initiative, TikTok aims to support the growth of SMEs in Vietnam and contribute to the development of the country's digital economy.
