TikTok has invested $125 million in Ho Chi Minh City, the southern economic hub of Vietnam, the municipal Department of Finance said on Thursday.

The investment was made by TikTok Pte. Ltd (Singapore), the department clarified at the city’s quarterly socio-economic performance review. The investment is a key project in the city in the first quarter of this year, the department highlighted. Overall, in the first three months of 2026, Ho Chi Minh City attracted foreign direct investment of $2.9 billion, up 220% year-on-year.

Prior to the investment, at a meeting in November 2025 with leaders of the city, Chanida Klyphun, Director of Public Policy at ByteDance, noted that TikTok plans to operate as an on-shore supplier in Vietnam, instead of an off-shore supplier.

TikTok also said it would establish three companies in Ho Chi Minh-based Vietnam International Financial Center (VIFC), in sectors of logistics with about two billion transactions a year, digital payment for 45 million customers, and e-commerce with gross merchandise value at $10 billion annually.

So far, TikTok has set up two major entities in Vietnam, including TikTok Technologies Vietnam Co., Ltd. with a charter capital of $6.1 million and TikTok Shop Vietnam LLC with $100 million. The CEO of both entities is Nguyen Lam Thanh, Head of Public Policy cum authorized Head of Representative Office, Vietnam.

TikTok shop is now the second-biggest e-commerce platform in Vietnam, with a market share of 41% as of end-2025, up from 29% in end-2024. The top one is Shopee with 56% as of end-2025, down from 64% in 2024, according to local e-commerce data analyzer Metric.vn.

TikTok’s Southeast Asia doubles GMV year-on-year to $45.6B in 2025