4 barriers of business
According to the Department of E-commerce and Digital Economy (Ministry of Industry and Trade), in Vietnam, the potential and room for businesses to export via e-commerce is still very large. In 2022, Vietnam's export value via e-commerce reached more than 80 trillion VND. It is expected that Vietnam's export turnover via e-commerce could reach nearly 300 trillion VND by 2027 if domestic businesses are supported to accelerate export through e-commerce.
Vietnamese businesses, especially small and medium-sized enterprises, will have the opportunity to succeed in this market if they approach it systematically and build a long-term strategy. However, in reality, accessing giant e-commerce platforms that have developed internationally such as Amazon, Walmart, Alibaba, etc. is still difficult for businesses that want to enter the market.
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| In Vietnam, the potential and room for businesses to export via e-commerce is still very large. |
Ms. Lai Viet Anh - Deputy Director of the Department of E-commerce and Digital Economy once pointed out some barriers such as:
Firstly, there are strict regulatory barriers in the export market. Enterprises must understand the regulations of each market and the regulations for different types of goods. At the same time, they must comply with the legal framework when doing business in the international environment.
Second, there are barriers in the capacity of businesses, especially small businesses. Businesses have difficulty in researching the market to meet the preferences and psychology of foreign consumers; lack of skills and knowledge about marketing in cross-border e-commerce; and lack of a professional team to build long-term business orientation and strategy.
Third, there are cost barriers to participating in import and export activities. In addition to the usual production and distribution costs, there are also marketing costs, transportation costs, warehousing costs, etc.
“However, for businesses with strong resources and experience in cross-border e-commerce, these costs can be optimized. For businesses without experience, they should seek advice from industry experts or a professional consulting firm,” said Ms. Lai Viet Anh.
Fourth, there are logistics barriers. Businesses need to understand the logistics operation process in cross-border e-commerce, effective storage plans for goods, and calculate optimal logistics plans at low costs so that goods have the most competitive selling prices.
Efforts to support businesses
According to the leader of the Department of E-commerce and Digital Economy, to support businesses in applying e-commerce and reaching out to international markets, the Government has issued many policies, regulations, decrees and documents.
We can mention Decision No. 645/QD-TTg of the Prime Minister on the National E-commerce Development Program for the period 2021 - 2025, with many solutions such as improving capacity, training for businesses to apply e-commerce for businesses to support solutions for businesses to digital transformation, open websites, participate in e-commerce platforms or annual e-commerce programs to stimulate market demand, to expand the cross-border sales market through e-commerce.
Along with that, Decree 80/2020/ND-CP guides the law on supporting small and medium enterprises, providing very specific levels of support for businesses in the process of applying digital transformation solutions; or when participating in sales on major e-commerce platforms. Specifically, support 50% of the cost of opening and maintaining booths on domestic and international e-commerce platforms.
In addition, there is Decision No. 1415/QD-TTg of the Prime Minister on the project to promote enterprises to directly participate in global distribution networks, in which supporting enterprises to participate in cross-border e-commerce sales is considered a core solution.
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| Go Export's 8 comprehensive solution groups support businesses exporting via e-commerce |
In order to help businesses remove the barriers they are facing, aiming at the goal of Vietnamese businesses accessing and successfully exporting through e-commerce platforms, the Center for Information Technology and Digital Technology (Department of E-commerce and Digital Economy) has also conducted a number of research activities and cooperated with major e-commerce platforms and partners with resources, technical solutions as well as operating processes and a team of experienced professionals to implement the Program to support businesses exporting through cross-border e-commerce - Go Export.
The difference of the Program is the long-term support of a team of experts, helping businesses optimize costs and bring the highest efficiency to the business.
Specifically, Go Export supports businesses with 8 comprehensive solution groups to help businesses solve all stages from product research, business plan development, legal procedures, logistics, marketing... to selling products and further optimizing sales on international e-commerce platforms.
The leader of the Department of E-commerce and Digital Economy said that in the coming time, the Go Export Program will continue to expand its support for Vietnamese businesses to access and export through international e-commerce platforms, especially through large e-commerce platforms such as Amazon with a huge customer base worldwide.
At the same time, organize direct exchanges between experts and business leaders, help assess the potential of the export market and conduct preliminary research on products, and provide general advice to businesses. Then, for suitable businesses participating in the program, the team of experts and specialists will build a long-term strategy and accompany the business throughout the export process via the e-commerce platform.
“Businesses interested in and needing consulting support on the Go Export program can contact the Department of E-commerce and Digital Economy through the Center for Information Technology and Digital Technology,” said Ms. Lai Viet Anh.
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