In the last years, low-cost internet and high-speed connections have led to an increase in internet adoption and penetration in Vietnam. Fixed-broadband internet as well as mobile-cellular internet in Vietnam is relatively affordable, charging one of the lowest monthly subscription rates for fixed-broadband internet and mobile-cellular internet. Furthermore, the average internet connection speed in Vietnam surpassed many of its neighboring countries. Vietnam was forecasted to have about 63.6 million internet users by 2020. With a population of over 95 million, internet penetration in Vietnam was projected to reach around 65 percent in the same year.
Mobile ad spend was predicted to grow rapidly. In 2019, mobile ad spending accounted for a 67.1 percent share of digital ad spending in 2019, showing an increase compared to 55.2 percent in 2018. In Vietnam, active mobile users mainly use social networking apps, chat apps and video apps. In the upcoming years, social networks will dominate the digital advertising market with over 50 million social media users by 2023. Leading social media platforms in Vietnam are Facebook, YouTube and Zalo. In particular, Facebook has the highest engagement for video posts. In a survey among Vietnamese internet users, 71 percent of respondents stated that they watched online videos every day. Online video penetration is especially high for Gen Z and Millennials. According to a survey among respondents aged between 20 and 49 years, 42 percent indicated that they spent two hours on video streaming services.
Businesses in Vietnam have already taken advantage of this. In a survey on main online advertising media used by enterprises in Vietnam, 49 percent of respondents indicated that they used social media advertising, followed by search engine advertising. Given these premises, there are great opportunities for marketers and advertisers in the digital landscape.