E49: Vietnam’s digital shake-up: Threads, Facebook's fightback and the banking app boom

Ho Thuy Tien and Thue Quist Thomassen from market research agency Decision Lab return to You Don’t Know Vietnam to break down their latest Connected Consumer Report — and what it means for brands. We dive into why Threads is exploding among Gen Z, how brands should approach audio platforms and live commerce, and why Vietnam’s ride-hailing and digital finance sectors are evolving fast. From the rise of Xanh SM to the blurring lines between e-wallets and banking apps, this episode is full of insights for anyone looking to stay ahead in Vietnam’s fast-moving digital landscape.

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This podcast is brought to you by We Create Content, the content marketing agency that builds audiences for global brands in Vietnam. You can follow our host, Ian Paynton, on LinkedIn, and follow the podcast on Instagram, TikTok and X.

A special thanks to DJ Jase at The Beats Saigon for the soundtrack, and to YOU for listening.

Transcript

Ian:
Welcome to You Don’t Know Vietnam, the show that demystifies Vietnam for global audiences by talking to the creatives, trendsetters, and business owners who are taking on the market. Forget what you thought you knew about Vietnam — it’s no longer that, as you’re about to find out.

I’m Ian Paynton, co-founder of We Create Content, a content agency that helps global brands connect with Vietnamese consumers. We make global brands relevant in Vietnam with always-on, hyperlocal content.

On this episode of You Don’t Know Vietnam, I’m talking to Tien and Tue from market research agency Decision Lab — back on the podcast this time to break down their latest installment of the Connected Consumer Report.

Today, Tien and Tue talk me through the opportunity that is Threads in Vietnam: why it’s growing so rapidly, which demographics are driving that growth, and how they’re using it.

We explore the growing importance of audio platforms in Vietnamese marketing, the rise of live commerce as a critical brand strategy, and how that’s reshaping e-commerce.

We also get into the shakeup happening in Vietnam’s ride-hailing scene — and how the lines are blurring between eWallets and traditional bank apps, with banks rapidly upping their digital game.

Ian:
Thanks for joining me again on You Don’t Know Vietnam. Decision Lab is in the house for the second time.

Thue:
We're super happy to be back — thank you for the opportunity. I’m very happy this time to be joined by Tien, who is really the brains behind our operations on the Connected Consumer report.

Tien:
Hi Ian, thank you for inviting us to join the You Don’t Know Vietnam podcast. I’m glad to be here today.

Ian:
You are very, very welcome. Well, you know me — I love your Connected Consumer Report, and I know that it comes out every quarter. It’s all about the digital landscape in Vietnam — how consumers are connecting. So tell me about the latest one — what’s going on?

Tien:
Maybe before diving into our findings from the latest one, I’ll just give a quick introduction. The Connected Consumer Report is a quarterly tracking study that we’ve been conducting since 2019. It aims to provide the latest updates about Vietnamese digital consumption to help brands and agencies in Vietnam stay connected with consumers.

The report focuses on online behaviour — including social media usage, digital activities, and digital utilities.

Thue
And the super cool thing is that it’s not just used by agencies or brands — it’s used by everyone. I was on the back of a motorbike for a food tour in Saigon, and the girl driving the bike, who was studying marketing, knew exactly what the Connected Consumer was.

Ian:
You know I love it. I always summarise it on LinkedIn. It’s such a good resource to have every quarter. So what are your findings from the most recent report — Q4 2024, I assume?

Tien:
Yes, that’s right. We’ve got three key findings, but let’s dive into the most exciting one — which is Threads. You know Threads, right? It’s the platform owned by Meta. It’s a text-based platform, similar to what X (formerly Twitter) used to be. In Vietnam, the current penetration rate based on our latest Q4 data is 15%. And Gen Z accounts for about 27% of that user base — so the growth of Threads is still mostly driven by the youngest generation.

Thue: 
Yeah — and it’s interesting because text-based social media has never really been a big thing in Vietnam. Twitter never took off here like it did in Indonesia or elsewhere. So Threads feels very audience-defined. It’s still discussion-based and text-driven, but the vibe is very different — it’s Gen Z talking about TV shows, music, or just complaining and being funny. Very unlike what we’re used to on other global platforms.

Ian:
I agree. Twitter (or X) never took off in Vietnam. Whenever a brand talks to us about using X here, I’m like — don’t even bother. But Threads is really making a strong case. I’m looking at the charts in the report and the growth is steep — especially among Gen Z. Why do you think that is, Tien? Why is Threads so popular with that audience?

Tien:
First, because of its integration with Instagram and Facebook. These are the top two social media platforms in Vietnam, already deeply embedded in daily digital habits. So Threads is easy to access — users just jump across from Instagram or Facebook. Second, because it’s within the Meta ecosystem, it benefits from shared algorithms. It “knows” what you like based on your behaviour on the other platforms — and it uses that to show you relevant content on Threads right away. That eases onboarding and personalisation.

Ian:
That makes a lot of sense — easy entry and the good ol’ algorithm on steroids, serving you what you like.

Tien:
Exactly.

Ian: 
How do you personally use Threads, Tien? Are you a user?

Tien:
Yes, I use Threads on a daily basis. It’s actually one of my most-used platforms now. I mostly use it to stay updated on shows, music, and entertainment.

Ian:
And are you more of a scroller or a content creator?

Tien:
Mainly a content consumer.

Ian:
If you had to describe how Vietnamese people are using Threads, how would you put it?

Tien:
Just from personal observation — and from talking with colleagues — Threads is being used to stay up to date on specific interests. For example, one of my colleagues is really into matcha and matcha cafés. Threads picks up on that and starts feeding her posts about hidden matcha spots or niche chains that specialise in it. It understands your interest and starts showing you very specific content. It’s really effective at that.

Ian:
Yeah. I go on Facebook now and scroll through the timeline — and there’s hardly anything I’m interested in.

Thue:
Facebook is still doing really well with what we call mindless browsing — like just following the Reels rabbit hole. Whereas with X or Threads, you’re a bit more in control of your feed. You follow people you’re genuinely interested in — not necessarily friends or family — and you build a more curated experience. It’s a bit more like a news feed than just your cousin’s holiday photos.

Ian:
Have you spotted many brands on Threads so far, Tien?

Tien:
It’s still new to the market, so most brands on Threads tend to be early adopters — usually the ones that want to appear innovative or trend-driven. They typically target Gen Z. I’ve seen a few F&B brands — small local chains or more familiar ones like The Pizza Company. Media brands are also present. But it’s still early days.

Thue:
Which means it’s the perfect time to experiment. Our data shows you can definitely reach a specific demographic on Threads, and we can see that it’s growing. So it’s worth it for brands to pick it up and start building a following now. And I think, in today’s social media landscape, where no single platform dominates everything anymore, it's no longer necessary to have everyone in one place. You can reach different people on different platforms.

Ian:
Right. It’s more about understanding the mindset people are in when they’re using each platform. The way someone browses Threads is very different from how they engage with Facebook, Instagram or TikTok. So content has to be tailored — you can’t just blast the same creative across all platforms anymore.

Thue: 
Exactly. You have to build natively for each platform. It takes effort — but it’s also an opportunity. Right now, Threads isn’t as commercialised as the bigger platforms. There’s less advertising. So it’s still a bit of a white space. And that means early adopters can really benefit.

Ian:
Yeah, I agree. So, just to ground us — in terms of preference order, are we still talking about Facebook on top, then Zalo, followed by YouTube and TikTok?

Tien:
Yes.

Ian:
And TikTok is still climbing?

Tien:
That’s right.

Ian:
What surprised me was how low Instagram appears in the Connected Consumer Report.

Thue: 
 Yeah, that’s something we’ve observed for a while. TikTok is leading in many areas — especially with Gen Z. And historically, Vietnam hasn’t been a strong market for Instagram. It never fully "owned" a social media niche here in the same way. Threads is trying to own that younger, interest-based conversation segment. But TikTok still wins in terms of engagement and reach with younger users.

Ian:
I’ll tell you what surprised me in this report — the popularity of YouTube for audio streaming. And also, I noticed that a lot of people in Vietnam have iPhones — yet Apple Music ranked quite low as a preferred music platform. What’s going on there?

Tien:
Let’s start with YouTube. The data includes general YouTube usage, not just YouTube Music. One reason YouTube is dominant in music and audio streaming — with a 75% usage rate — is its vast music library. It includes official tracks, user-generated remixes, and more. Also, YouTube is becoming a big podcast platform.

Now, for Apple Music — it’s worth noting that while many people appear to have iPhones, the data tells a different story. According to our latest data on profile, nearly 60% of Vietnamese users are on Android. Only about 30% use iOS — meaning they own an iPhone, iPad, or Apple product. That’s one reason why Apple Music usage remains relatively low.

Ian:
Ah, so the iPhone presence might be a bit misleading when it comes to actual market share?

Tien:
Exactly. Another key point is that Apple Music is fully subscription-based. If you don’t pay, you can’t use it. Platforms like Spotify, YouTube, and even local ones like Zing MP3 or SoundCloud offer freemium models. That lets users try the platform before committing to a subscription — and that’s a big deal for Vietnamese consumers.

Thue: 
Spotify is an interesting case, too. They’ve done very well in recent years entering the market and building their user base. It’s impressive considering how much free content is available through other platforms. Apple Music, on the other hand, seems much less aggressive in trying to gain market share here.

Ian:
So Spotify’s freemium model is what gave it traction — and Apple Music missed that opportunity?

Thue: 
Exactly. And what’s also interesting is how this rise in audio streaming opens up a new opportunity for brands. Many advertisers in Vietnam are used to telling their stories through video — but audio ads are underutilised. And when you think about how people listen — whether it’s at the gym, while studying, working, putting the kids to bed — audio becomes really intimate and context-sensitive. And that creates opportunities for creative, situational advertising. For example, we saw one campaign from IKEA. They ran ads during bedtime routines, but the ads were really quiet — so they didn’t wake the kids. Later, they’d promote pillows or sleep-related products. It was clever and respectful of context.

Ian:
That’s such a unique challenge — finding new creative ways to connect via audio.

Thue: 
Totally. Big campaign budgets have long gone to video, but this is a new frontier. And in Vietnam, you get what we call the ketchup bottle effect. It takes a while to come out — but once it does, there’s a sudden surge of adoption. So with audio, we’re still waiting for that big moment where brands go all in. But it’ll happen — especially for those who think creatively and build campaigns around sound, not just visuals.

Ian:
That’s a perfect segue to an ad break.

Thue: 
Exactly! Have you got any advertisers yet?

Ian:
Not yet — but Mr or Mrs Advertiser, if you’re listening, this is your slot!

Ian:
One thing that particularly caught my attention in the latest Connected Consumer Report was the rise of live commerce. Do you remember that crazy $3 million TikTok livestream last year that made headlines everywhere? It feels like live commerce has been brewing for a while. What does the latest report say about it?

Tien:
We’ve been observing the rise of live commerce since mid-2024. And we believe it has now moved beyond the experimental phase — it’s become an essential online shopping method for Vietnamese consumers. For context, live commerce is the combination of online shopping and livestreaming. According to our data, TikTok had really strong performance in this space last quarter — it was the most preferred platform for live streaming. But in the most recent quarter, Facebook has made a comeback and is now the leading platform.

Ian:
That’s interesting. I feel like I’ve seen people doing live shopping on Facebook for the last six or seven years. What’s different now?

Tien:
The difference lies in new platform features. Facebook recently introduced updates like a dedicated shopping cart button, where streamers can showcase all the products they’re selling in a clear, direct format. It’s now integrated with Messenger, too — so shoppers automatically receive delivery updates and order confirmations via chat. These upgrades have made Facebook Live feel more like a proper retail channel — not just a casual livestream.

Ian:
That makes sense. Are any big brands using Facebook’s new live shopping features effectively yet? Or is it mainly small businesses and individual sellers?

Tien:
Before I answer that, I want to share a broader observation. I recently read a Forbes article that pointed to fandom culture as a major driver behind live commerce in Asia. In Vietnam, most brands tapping into live commerce are doing so by collaborating with streamers, influencers, or well-known personalities. These mega live sales generate excitement, create a more dynamic experience, and — most importantly — build trust. When a trusted KOL promotes a product in real time, it has real impact. It’s especially beneficial for local or low-awareness brands.

Ian:
And what about global players?

Tien:
On my own TikTok “For You” page, I often see L’Oréal doing livestreams — sometimes daily. During key events like “double days” or salary bonus periods, they bring in celebrities to boost visibility even more.

Thue: 
L’Oréal is a really interesting case to follow. A lot of what they’ve built in live streaming globally actually originated in Vietnam. Years ago, they were one of the first big brands here to turn a large portion of their e-commerce strategy toward live commerce. And it worked. From a research and consulting perspective, what makes L’Oréal’s success interesting is that they did it at scale — not just as a small test.

Ian:
So they weren’t just first movers — they were early scalers?

Thue: 
Exactly. And that’s inspirational for the Vietnam market. Because before live commerce, we had social commerce — which is still a defining feature of how Vietnamese people shop and engage with products. L’Oréal tapped into that and combined it with Vietnam’s high online penetration and rapid tech adoption to build their strategy around live commerce. Now, what worked in Vietnam is influencing how they do e-commerce in other markets around the world. So in that sense, Vietnam is becoming a kind of test market — one with the right mix of connectivity, innovation, and user behaviour to lead the way.

Ian:
That’s amazing. I think global audiences — especially older generations, maybe in places like the UK — might still be surprised by this. Because when you really think about it, live commerce is like a modern version of shopping TV, right?

Thue: 
Exactly. My hypothesis is that e-commerce has long struggled to recreate the feeling of shopping — the physical, in-store experience where you browse, ask questions, feel products. Live commerce brings that experience back. It’s dynamic. It’s human. It’s interactive. And in a market like Vietnam — where people adapt quickly and are open to new formats — it’s thriving.

Ian:
Another thing that really caught my eye in the latest Connected Consumer Report was the rise of XanhSM. Is this the shake-up Vietnam’s ride-hailing industry needed? What’s going on there, Tien?

Tien:
We think so. According to our latest data, Xanh SM has experienced significant growth throughout the year. As of this quarter, they’ve reached 50% usage — that’s closing the gap with Grab, which currently sits at 63%. What’s even more interesting is that when we break it down by preference rate, Xanh SM saw the biggest increase among users — especially in the car ride-hailing category. And that growth is being driven by Gen Z.

Ian:
So younger people are switching to Xanh SM. Do you think they’re buying into the electric vehicle narrative?

Tien:
Yes — that’s definitely one factor. Gen Z seems to be drawn to the value-added experience, especially when it resonates with their personal values. We’ve also conducted another piece of research called the Index of Consumer Confidence, which showed that price is no longer the main driver behind Gen Z’s brand choices. They’re more likely to choose something if it aligns with their beliefs or reflects something they care about. So for Xanh SM, the green positioning and value-driven messaging are really resonating.

Thue: 
Historically, ride-hailing has been a race to the bottom — it’s been all about who can offer the lowest price. But Xanh SM is doing something different. What Vingroup has always done well is define a new standard for living in Vietnam — and they’re bringing that mindset into the ride-hailing space. They’re raising the bar — better cars, higher service quality, and a green mission. They’re not just competing on cost; they’re shifting the conversation.

Ian:
And it seems like Grab is also responding — adding new features, more premium options...

Thue: 
Exactly. It’s becoming a real competition. We’ll see more feature innovation across the board.

Tien:
I just want to add something. Xanh SM has also launched campaigns that speak directly to Gen Z values. For example, they had one where if you referred a friend to download the app, Xanh SM would donate to charity on your behalf. And when you take a ride, the app shows you how much CO₂ you’ve saved. So it's not just about comfort or cost — it’s about showing users that their choices contribute to something bigger.

Ian:
That’s fascinating. People often describe Vietnam as an extremely price-sensitive market, but this really challenges that. It sounds like people are willing to pay a bit more if the experience or the mission feels meaningful.

Thue:
Yes — and honestly, it highlights a gap in how some brands use market research. Too often, we see companies looking too much at what their competitors are doing, and not enough at what their customers want. That leads to generic products — and when everything feels the same, price becomes the only differentiator. What brands really need to do is invest in innovation driven by real insight. Ask: Do people want greener rides? Do they want better customer service? More reliable vehicles? Then build around that.

Ian:
I agree 100%. Differentiation through insight is the only way forward — otherwise everything just becomes commoditised. We’ve seen that in content too — content became a commodity for a while. Everyone was getting undercut. That’s why offering something distinct — and grounded in real audience understanding — is so important. Also, I’ll tell you what would make me switch to Xanh SM: if they included those little yellow electric jeeps. I love those things. I wouldn’t mind rolling up to work in one.

Thue: 
I’m going for a test drive soon! My wife’s really into them. But yeah, I think you’d need to drive it yourself — I’m not sure how roomy the back seat is.

Ian:
Might be a tight squeeze. For anyone listening and wondering what we’re talking about — the car is called the VF3. And if you Google it, make sure you check out the customisations people are doing. They’re amazing.

Ian:
Now, I know we talked about this the last time you were on the podcast, Tue, and I know it’s something close to your heart — what's going on with banking apps and eWallets in Vietnam? What does the latest report say?

Tien:
At the top of the category, MoMo still leads, with 60% usage — but that number has stagnated across the year. In fact, when we look across the eWallet ecosystem, most players are hitting a penetration plateau. The one area still showing clear growth is banking apps, particularly bank-owned apps, which are now at 26% penetration — and steadily rising.

Ian:
Right. And what’s behind that shift?

Thue: 
A few things. First, the rise of QR codes has been massive. You can now pay everywhere with a QR code — and people are generating and scanning those codes directly from their banking apps. It’s simple. It’s immediate. And it gives traditional banks direct access to vendors all over the country. That changes the game.

Ian:
So you’re saying the convenience of QR payments is now helping banks compete with eWallets?

Thue: 
Exactly. It’s also a sign that eWallets are approaching market saturation. They’re no longer fighting for new users — they’re fighting to retain and monetise the ones they already have. So we’re seeing a wave of partnerships forming across the financial services sector. MoMo is collaborating with investment apps. ZaloPay is working with insurers. Everyone’s trying to build out value-added ecosystems — not just handle payments, but offer budgeting tools, loans, savings, even insurance.

Ian:
So we’re talking about the super app race, then?

Thue: 
Yes — and it’s heating up. Some platforms, like Shopee, have been able to leverage their user base to build financial services into their apps. But now it’s all about services, not just scale.

Ian:
So if I’m hearing you right — the lines between banks and eWallets are starting to blur?

Thue: 
Yes. And here’s where it gets even more interesting. Think about our experience growing up in Europe — you only become valuable to your bank when you’re older: when you’re buying property, getting a mortgage, investing. Banks wait until you reach that stage before they engage you seriously. But in Vietnam, Gen Z might never walk into a bank. Say you’re a student who drives Grab part-time. You get paid straight into MoMo. You manage your expenses there. You send money, receive money, maybe even buy insurance or invest via the app. Suddenly, your primary financial experience is through MoMo — not a traditional bank. And the challenge for traditional banks is that platforms like MoMo understand their users deeply. They help users with the things that banks don’t usually do — like budgeting, splitting bills, saving for the end of the month. These “non-core” financial services are building trust — and that’s what makes them a threat to traditional players.

Ian:
But Vietnamese banks aren’t exactly sleeping on this either, are they?

Thue: 
No — and that’s the exciting part. Vietnamese banks aren’t like the slow-moving legacy banks you might know from Europe. They’re responding quickly. They’re releasing seriously impressive apps with features that rival — or even beat — the eWallets. And don’t forget: they also have the trust factor. So if they can match the user experience, they could absolutely reclaim dominance.

Ian:
Now, I usually end the episodes by asking: What are you most excited about for Vietnam’s future? But I’m going to switch things up. What should we be watching out for in the rest of this year? What are the trends to track?

Tien:
From my perspective — and from what we’ve observed throughout the year — Threads is a big one. Right now, it’s dominated by Gen Z, but Gen Z is known for being trendsetters. What starts with them often expands to older generations. We’ve seen that play out with TikTok and YouTube already. So I think Threads has the potential to become a top social media platform in Vietnam, not just among Gen Z but across demographics.

Thue:
For me, I’m really hoping to convince Tien to add more data about AI tools being used in Vietnam in the next Connected Consumer Report. We hear a lot about how AI will change everything, but I’d love to see actual data: which tools are really being used, what the use cases are, and how they’re being monetised. Also — I’m closely watching QR code innovation. It’s so simple, almost too good to be true. But there must be more coming. New players. New features. It’s going to evolve quickly.

Tien:
We also have to watch live shopping. Facebook is clearly taking the concept more seriously now — meaning the competition is just getting started. I think in 2025 and beyond, live commerce is going to become much bigger, more sophisticated, and even more critical for e-commerce success. And one last point — I think we’ll see the rise of value-driven consumerism. Similar to what Xanh SM offers today, brands that deliver a value-added experience and align with consumer beliefs will stand out. Gen Z is entering the workforce, earning money, and gaining independence in how they spend. They’re going to reshape the consumer landscape.

Thue: 
What are you excited about, Ian?

Ian:
Well, I’ve spent a bit of time in Singapore recently, and I’ve been hearing a lot more conversations about Vietnam being taken seriously as a growth market in this region.

So I’m keen to spend more time in Singapore — knocking on doors and, as I said on LinkedIn, banging the Vietnam drum.

Helping more global brands get to know Vietnam, enter Vietnam, and connect with Vietnamese consumers on a daily basis — through content.