E-commerce is driving Vietnamese businesses and brands around the world

Participants of the 2024 Cross-Border E-Commerce Summit on May 22 – VNS Photo Mai Hương

HÀ NỘI – Cross-Border E-Commerce Summit 2024, which started in Hà Nội yesterday, emphasized on the forward-looking approach of leveraging cross-border e-commerce as a suitable way to elevate Vietnamese enterprises and brands to the global stage, thereby strengthening import-export activities.

The event titled “Quintessential Global Growth of Vietnamese Goods” was organized by Amazon Global Selling Vietnam (AGSV) in cooperation with the Vietnam E-Commerce and Digital Economy Agency (VEDEA) under the Ministry of Industry and Trade.

The forum also highlighted a number of promising results, showing that the recent explosion in e-commerce has significantly supported Vietnam’s import-export activities.

Nguyễn Thị Minh Huyền, deputy director of VEDEA, said retail e-commerce turnover has grown at an average rate of about 20 percent over the past decade, positioning Vietnam among the fastest-growing e-commerce markets in the region and the world.

The global e-commerce market is expected to grow rapidly, with estimated revenues reaching USD 7.4 trillion by 2025. In the context of Vietnam’s deepening integration into the global economy, coupled with opportunities arising from next-generation free trade agreements, the trend to shift from traditional businesses to digital platforms is seen as an effective way for companies to penetrate and expand into export markets, Huyền said.

The authorities are implementing the National Master Plan for the Development of E-Commerce (2021-2025) to strengthen the e-commerce market and consumer confidence, she added. The priorities are both promoting exports and increasing domestic consumption of local products through e-commerce. The agency is currently working with provincial governments to improve e-commerce management, support digital transformation and promote local products on platforms such as Sàn Việt.

Gijae Song, general manager of Amazon Global Selling Vietnam, said that in just the last five years, the number of products sold by Vietnamese partners on Amazon has increased by more than 300 percent, while the number of Vietnamese partner companies are achieving revenue of $1 million per year on Amazon increased almost tenfold.

During the same period, 35 times more Vietnamese companies also participated in Amazon’s Brand Registry program.

Gijae pointed to some benefits for Vietnamese sellers, such as vibrant online seller communities and significant production advantages from lower labor costs and high-quality products. However, he said Vietnamese manufacturers are mainly focused on fulfilling large-scale, pre-planned orders, making it difficult to adapt to the rapidly changing demands of online retailing. Additionally, while Vietnamese sellers are quick to capitalize on short-term opportunities, many of them lack the experience and strategy to build a long-term, sustainable business.

The AGSV leader advised local businesses to focus on speed and customer needs. Successful e-commerce sellers must quickly incorporate customer feedback into their products and bring them to market quickly. A balanced approach that combines rapid response with strategic planning is key to thriving in the competitive e-commerce landscape, he said.

Delegates inaugurate the second stage of the “Cross-border e-commerce: era of breakthrough” program in cooperation with the Department of Electronic Commerce and Digital Economy. Photo courtesy of AGSV

Cooperation with industry associations

ABSG has unveiled the second phase of its ‘Cross-Border E-Commerce: An Era of Disruption’ program in collaboration with the Department of E-Commerce and Digital Economy as part of its ‘Industry Linkages – Growing through Cross-Border E-Commerce’ initiative. This program will help collaborate across key associations and industries to collectively increase and strengthen cross-border e-commerce opportunities for leading export sectors. It aims to raise awareness, provide additional training resources and help member companies succeed in the field of global e-commerce.

Ngô Sỹ Hoài, vice president and secretary general of the Vietnam Timber and Forest Products Association (VIFOREST), noted that Vietnam’s timber industry has experienced continuous growth for 20 years, with an annual growth rate of over 10 percent. The industry is positioned as one of the largest beneficiaries of e-commerce, and revenues on the Amazon platform are among the leading categories. Despite progress, Vietnam’s timber industry still faces various weaknesses and challenges. First of all, most wood processing companies are small and medium-sized enterprises (SMEs) focused on processing orders from external importers, limiting value addition.

For the textile and clothing industry, e-commerce provides a direct route to end consumers, making it easier to build a brand despite lower volumes.

Trương Văn Cẩm, vice president of the Vietnam Textile and Apparel Association (VITAS), highlighted Amazon’s role in enabling customers to directly access textile products, reaffirming Vietnam’s position in terms of competitive prices, quality and fast delivery. Cẩm expressed hope that Amazon will help enterprises identify strengths, weaknesses and improve value chain processes to ensure continued success in e-commerce.

In practice, access to the most important e-commerce platforms in the world still poses many challenges, such as insufficient supply of e-commerce labor, lack of information about trends and regulations related to foreign markets, limited skills and knowledge in building business strategies, branding and brand protection in cross-border e-commerce.

To address these issues, Nguyễn Văn Thành, director of VEDEA’s E-Commerce Development Center, said that in addition to initiatives to promote exports and consumption of local products, they are working with provinces and cities to organize regional linkage activities and capacity-building training in in the field of e-commerce. trade management.

Local companies interested in participating in e-commerce development training can register with the relevant provincial departments of industry and commerce to receive specialized support and training. This is intended to enable smoother participation in the cross-border e-commerce market, Thành said. —VNS