TikTok deepens Vietnam commerce bet with US$980M logistics project in Ho Chi Minh City

TikTok's Tikgistic Pte. Ltd. has committed US$980 million to a new logistics project in Ho Chi Minh City. The venture, Swift Logistics, is set to begin operations in November and operate for 50 years. Tokgistic contributed US$196 million initially, with the remainder to be raised later. The logistics firm will initially focus on postal services, delivery, market research, and management consulting.

However, TikTok aims to leverage Swift Logistics to deepen its role in Vietnam's e-commerce infrastructure. By contracting with customers and passing on the delivery and logistics work to third-party providers, TikTok can maintain closer ties to merchants, shoppers, and transaction data. The investment aligns with a broader strategy discussed with Ho Chi Minh City authorities in November 2025, which includes establishing businesses in logistics, digital payments, and digital commerce.

For Vietnam, attracting a global technology platform into logistics, payments, and commerce, fits into its push to deepen the digital economy and draw higher-value foreign investment. For TikTok, the logistics project is essential due to Vietnam's significant consumer internet market and fast-growing online retail sector. The company's planned logistics operations in Vietnam could handle 1 billion to 2 billion orders annually, with a potential payments arm serving about 45 million users and supporting over US$10 billion in annual transaction value.