Implementing agencies

TikTok Pte. Ltd.

• Category

  PROJECT

• Date time

  FROM 2023 TO PRENSENT

• Field

  DECENT WORK AND ECONOMIC GROWTH

With the mission of bringing high-quality Vietnamese products to consumers, TikTok Vietnam proudly introduces the initiative "Proudly Made in Vietnam" (#BuyLocal), comprising two programs: "OCOP Marketplace" and "Proudly Made in Vietnam" (sharing the name of the overall project). These programs aim to address challenges in the distribution of Vietnamese agricultural products, enhance the appeal of local goods, and bridge the gap between urban and rural areas, as well as between foreign enterprises and MSMEs (micro, small, and medium enterprises) in Vietnam. The initiative also seeks to overcome geographical barriers between sellers and buyers often seen in traditional marketing and sales methods. Launched nationwide, the program has organized 70 events across 29 provinces within all six economic regions of Vietnam in 2024 alone.

Part 1

Starting background of the project

The challenge of finding markets for Vietnamese agricultural products has always been a major concern that needs to be addressed. Despite efforts to promote OCOP (One Commune One Product) products through the media, social networks, or partnerships with local large retail chains, these initiatives have not been enough to make a breakthrough in product awareness and consumption. By 2022, many domestic consumers were still unaware of or unfamiliar with OCOP products, and the OCOP brand had not yet fully realized its potential. In other words, although localities have done well in launching campaigns and somewhat strengthening the production and distribution chains for OCOP products, there remains a gap between consumers and these products, posing a challenge to innovate and expand distribution methods to ensure sustainable market access.

In this context, on February 28, 2023, TikTok Vietnam and the Vietnam Agricultural Trade Promotion Center signed a strategic cooperation agreement to enhance digital transformation capabilities for the national OCOP program, officially laying the foundation for the "OCOP Marketplace".

Similar to the challenges faced by OCOP agricultural products, many Vietnamese businesses, despite having strong production capabilities and quality products, struggle to compete with foreign competitors. According to a survey published in September 2022 by the Social Opinion Institute under the Central Propaganda Department, 94% of respondents felt that the "Vietnamese people prioritize using Vietnamese products" campaign had changed consumer awareness and behavior towards favoring locally made products. However, with limited capital, marketing expertise, and distribution channels, many high-quality Vietnamese products still face fierce competition in their own home market.

After over 15 years of the "Vietnamese people prioritize using Vietnamese products" campaign, local products have widely penetrated both traditional and modern distribution channels. However, as e-commerce becomes an increasingly important distribution channel, there is a pressing need for proactive actions, with effective coordination between government agencies, business associations, and e-commerce platforms to expand the reach of high-quality Vietnamese goods on this new platform. Additionally, it is crucial for local traders and traditional businesses to engage with and adopt e-commerce solutions to lay the foundation for the sustainable growth of businesses and regions in the digital economy.

In line with efforts to support local businesses in their digital transformation, TikTok introduces the "Proudly Made in Vietnam" program to connect the platform with local businesses and sellers, helping to promote trade in Vietnamese agricultural products and specialties.

Part 2

Project innovation/ invention

TikTok and TikTok Shop benefit from the collaboration of many partners, with the Ministry of Industry and Trade, the Ministry of Agriculture and Rural Development, and other relevant government agencies playing a crucial role in connecting the platform with local businesses and sellers. The support from MCNs (Multi-Channel Networks), TSPs (Third-Party Service Providers), and passionate content creators form the second pillar of this partnership, establishing a strong "three-legged" foundation. This ensures that TikTok and TikTok Shop are deeply involved in every small task, from creating promotional videos and hosting super livestream shopping events to offering training and support for sellers across all provinces in Vietnam as they start their businesses on TikTok Shop.

Understanding that the value of OCOP (One Commune One Product) items lies not only in their quality but also in the local cultural identity embedded in each product, the TikTok Shop team and content creators have visited production facilities and sources of raw materials in different regions to learn about the products and listen to local stories. This has inspired content creators to produce short videos that help spread the story of each region's land, people, and agricultural specialties, especially during super livestream events.

To support OCOP sales during live shopping events, TikTok Shop provides discount vouchers, free shipping vouchers, and allocates advertising budgets for direct promotional campaigns to increase reach and encourage purchases on the platform. Additionally, TikTok Shop's team and MCN partners provide dedicated guidance and support for OCOP producers on how to register products and list them with OCOP tags on TikTok Shop. This effort has led to the creation of an OCOP product directory on TikTok Shop, making it easier for consumers to search for and explore OCOP-certified products.

To further enhance visibility and increase organic traffic to these stores, TikTok Shop prioritizes displaying the OCOP logo on the main Shop Tab page. With a single click, consumers can immediately view a catalog of OCOP-certified products. TikTok Shop also regularly offers discount and free shipping vouchers for OCOP products sold on the platform, encouraging consumers to choose these products whenever they have a need, rather than waiting for a live event.

After more than six months of successful implementation, in 2024, TikTok Shop is taking the "OCOP Marketplace" program to a new level with the launch of a training and community-building program called "OCOP Incubator". TikTok Shop is collaborating with local authorities to organize short training sessions for OCOP producers who wish to leverage the platform's power to expand their reach in the domestic market.

Part 3

Goals and vision of the project

Goals

- Address challenges faced by domestic production and business activities, strengthen the production and consumption linkages, expand regional connections, and boost the growth of domestic high-quality Vietnamese products.

- Expand the promotion, branding, and appeal of Vietnamese agricultural specialties and high-quality Vietnamese products. This contributes to the national campaign "Vietnamese People Prioritize Using Vietnamese Goods" and stimulates domestic consumption.

- Enhance the adaptability and digital skills of local traders and traditional businesses in the digital economy. This will provide new growth opportunities to complement traditional distribution channels, alongside the growing e-commerce sector.

Vision

- Narrow the development gap between regions in Vietnam, between urban and rural areas, create sustainable livelihoods, and generate employment opportunities for the rural workforce. This indirectly helps reduce the pressure of migration from rural areas to large urban centers.

- Contribute to closing the competitive gap between foreign enterprises and micro, small, and medium-sized enterprises (MSMEs) in Vietnam, offering more equitable access to the market, protecting local businesses and traders, and promoting inclusive economic growth.

- Break down geographical barriers between sellers and buyers in traditional marketing and sales methods, offering consumers a wide variety of affordable, high-quality domestic products that suit Vietnamese buyers.

Part 4

Implementation - Scope - Cost of the project 

The program has a nationwide scale and has implemented regional linkage activities in e-commerce, including Trade Promotion Conferences at the regional level in all 6 economic regions and 38 provinces and cities across Vietnam. In 2024 alone, the program organized 70 events, covering 29 provinces across all 6 key economic regions of Vietnam.

Based on the actual development roadmap of the project, the #BuyLocal initiative can be roughly divided into two stages:

- Stage 1 is associated with the "OCOP Market" program, a collaboration between TikTok Vietnam and the Agricultural Trade Promotion Center under the Ministry of Agriculture and Rural Development, which began in May 2023.

- Stage 2 of "Proud of Vietnamese Goods" officially launched in March 2024, with support from various government agencies and business associations. This stage marks a new phase in the development of the "OCOP Market," with significant expansion in both scale (increased number of benefiting businesses and products available on the platform) and depth (ensuring sustainability and effectiveness of the program's activities).

The "OCOP Market" program focuses on hosting major events such as OCOP super livestreams and online markets, which are regularly held every week on TikTok Shop. With the support of the Agricultural Trade Promotion Center, TikTok Shop's team, along with MCN partners and content creators, have gone to various regions to directly work with OCOP producers to organize and run these super livestream selling events.

The success of the "OCOP Market" laid the foundation for TikTok Shop to expand the program, officially launching Stage 2 of the #BuyLocal initiative at the beginning of 2024 under the name "Proud of Vietnamese Goods." This program is considered an upgraded version of "OCOP Market," expanding in both scale and depth. Carrying forward all the key activities of the "OCOP Market," the "Proud of Vietnamese Goods" program focuses on supporting millions of Vietnamese SMEs to reach Vietnamese consumers with high-quality local products through TikTok Shop.

With its expanded scope and impact, Stage 2, "Proud of Vietnamese Goods," has received support from various government agencies and partners. Specifically, TikTok Shop has been honored to collaborate with the Ministry of Industry and Trade, the Trade Promotion Department, the E-Commerce and Digital Economy Department, provincial Departments of Industry and Trade, the E-Commerce Association, the Institute for Economic Research, and domestic business associations to implement national projects related to socio-economic development, especially the domestic trade development program linked with the "Vietnamese People Prioritize Using Vietnamese Goods" campaign.

Part 5

Achievements 

- Stage 1: OCOP Market

From May 2023 to September 2024, with the collaborative support of various partners, the OCOP Market program reached 29 provinces and cities across Vietnam, engaging more than 3,500 sellers. The program successfully hosted over 1,000 livestream sales events, supported by over 500 content creators and partners. Videos with the hashtag #OCOP on TikTok garnered an impressive 1.96 billion views.

- Stage 2: Proud of Vietnamese Goods

From March to September 2024, the Proud of Vietnamese Goods program continued its journey across 29 provinces, organizing over 100 training sessions for more than 5,000 businesses and sellers. The "Proud of Vietnamese Goods" storefront on TikTok Shop now features over 68,000 products across diverse categories. The program recorded more than 3,000 livestream sales events, while videos with the hashtag #TuHaoHangViet on TikTok attracted 360 million views.

Dedicated efforts for traditional market vendors included visits to five major traditional markets nationwide, delivering 10 training sessions to 500 participants.

Success Stories from Prominent Enterprises

Chân Phương SME from An Giang Province: Chân Phương, an SME specializing in palm nectar and palm nectar bird's nest products, experienced remarkable growth through TikTok Shop. With relatable content, the brand's TikTok channel rapidly gained over 5,000 followers and 50,000 interactions. Its first livestream during the An Giang OCOP Market event recorded 736 orders.

APG EGO – Vietnamese Rice Brand: As a newcomer in the highly competitive rice market dominated by established players, APG EGO found growth opportunities through TikTok Shop. By effectively utilizing TikTok Shop's solutions and collaborating with content creators, the brand amassed over 33,000 followers. At its peak, APG EGO achieved 18,000 orders in a single month. Recently, in partnership with content creator Hằng Du Mục, APG EGO sold over 125 tons of ST25 rice in just two livestream events on TikTok Shop.

Bông Bạch Tuyết – A 60-Year-Old Vietnamese Brand: Despite excelling in manufacturing, marketing and branding were challenges for Bông Bạch Tuyết, a 60-year-old brand specializing in medical cotton and personal care products. This changed with its participation in TikTok Shop. During the Mega Sale 9/9, the brand conducted over 4,000 livestreams in collaboration with Affiliate Creators, contributing nearly 50% of its total revenue during the campaign (from September 1 to September 9). Earlier, during the December 2023 shopping festival, Bông Bạch Tuyết sold over 10,000 cotton pad products, achieving 10x revenue growth compared to the previous year. From February to August 2024, it secured the #2 spot in the cotton pads category on TikTok Shop.

Part 6

Model expansion potential

TikTok will continue to develop and expand the #BuyLocal initiative in the long term, aiming for deeper collaboration with government agencies, organizations, associations, and various social forces to support more small traders and local businesses. This will contribute to the development of the domestic market and achieve the goals and vision outlined.

In addition to its horizontal approach, targeting businesses across different geographic locations, TikTok Shop plans to expand the program vertically by industry. This approach will offer specialized support tailored to various sectors, particularly those where Vietnam has strong potential, such as textiles, food, home goods, and more. This will also guide the content of training programs to help businesses deepen their expertise and enhance their sales.

Additionally, TikTok Shop is launching new initiatives such as GreenUp, which plays an active role in promoting green consumption. This aims to encourage Vietnamese consumers to trust and choose products from domestic businesses and sellers who have been certified both domestically and internationally for environmentally-friendly production processes and eco-green products. This is a key step in supporting sustainable development.

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