Speaking at an e-commerce conference in Ho Chi Minh City, Mr. Truong Gia Bao, Vice President of VAA, emphasized that advertising spending in the Vietnamese advertising market is expected to reach 2.76 billion USD by 2024. Of which, the largest domestic market is advertising on TV and video with a market value of 1.25 billion USD.
Citing data from market research firm Statista, VAA said that 61% of total advertising spending in Vietnam will come from digital sources by 2030.
On top of that, the Vietnamese advertising market is shifting towards digital platforms, with demand for online advertising space and data-driven targeting strategies skyrocketing.
VAA's market research shows that foreign businesses do not hesitate to spend large amounts of money on advertising, proactively approach customers and put a lot of pressure on domestic businesses.
This is clearly shown in e-commerce platforms flooded with foreign products.
“Foreign businesses continue to dominate the advertising market, leveraging their financial strength and advertising strategies to lead the online space, including TikTok Ads, Unilever, Samsung, Nestle…”, Mr. Bao shared.
With large advertising budgets, foreign businesses can implement strategies to optimize content to suit Vietnamese tastes, use data and analysis to target accurately...
On the contrary, for many Vietnamese companies, limited advertising budgets directly affect access to major platforms.
VAA also pointed out the importance of controlling and sanctioning illegal advertising on online platforms.
According to a report by the Ministry of Information and Communications, the number of illegal advertisements on online platforms is increasing.
Common violations include: false advertising; fraudulent advertising: advertising products of unknown origin, or products without quality certificates; copyright infringement advertising: using images, videos, music without the permission of the copyright owner; fraudulent advertising, such as fake promotions, lucky games, "bargain" sales that are actually fraudulent.
“Controlling and punishing illegal advertising on online platforms not only protects consumers but also helps maintain a fair and sustainable business environment. The government and relevant agencies need to continue to make efforts to improve the legal system and cooperate with advertising platforms to build effective monitoring tools,” VAA recommended.
