Vietnam is an export economy, with strengths in textiles, footwear, rice, agricultural products, etc., with huge potential for cross-border e-commerce.
Huge export potential through e-commerce
According to the Index Report E-commerce Vietnam (EBI 2024) of the Vietnam E-commerce Association, estimated that the growth rate of Vietnam's e-commerce in 2023 increased by over 25% compared to the previous year and reached 25 billion USD, of which the scale of online retail sales of goods reached 17.3 billion USD.
Statistics from Amazon Global Selling show that the number of products sold by Vietnamese businesses on Amazon has increased by more than 300% in the past 5 years. Thousands of Vietnamese small and medium-sized enterprises are currently export through Amazon, with the number of businesses with annual revenue of over 1 million USD skyrocketing nearly 10 times. Through Amazon's platform, Vietnamese goods have the opportunity to reach online more than 2 billion people each year in markets in North America, Europe and many other countries such as Australia, Japan, Singapore, India...
At the seminar "Developing e-commerce - Opportunities, motivations and challenges" recently organized by the Government Electronic Information Portal, Associate Professor, Dr. Tran Minh Tuan - Director of the Department of Digital Economy and Digital Society - Ministry of Information and Communications shared that cross-border e-commerce has great development opportunities, especially when Vietnam is close to a very large market such as China. Moreover, currently, Vietnamese digital technology enterprises have built B2B e-commerce platforms, connecting with the world's major e-commerce platforms such as Amazon, Alibaba, Timo... so that when goods are listed on Vietnamese e-commerce platforms, they also appear on the world's major e-commerce platforms, connecting buyers directly with sellers as well as manufacturers.
According to some market information reports, cross-border e-commerce accounts for about 20-22% of the value of global e-commerce, with an estimated growth rate of 2.3 times that of e-commerce.
Ms. Lai Viet Anh - Deputy Director of the Department of E-commerce and Digital Economy - Ministry of Industry and Trade said that Vietnam is an export economy, with strengths in textiles, footwear, rice, agricultural products... the potential for cross-border e-commerce is huge, there are some estimates of cross-border e-commerce exports, in 2022 it will reach about 3.3 billion USD, in 2027 it is expected to reach more than 11 billion USD if there are support mechanisms from both the e-commerce platform and the State.
Sharing about the potential of the products, Shopee Vietnam CEO Tran Tuan Anh said that in terms of manufacturing, Vietnam has a very strong domestic production characteristic. This is the potential for us to take advantage of human resources with certain skills and knowledge to develop further.
As one of the small businesses trading organic agricultural products, Organic Viet Food Company (OVF) has decided to put its cashew products on e-commerce platforms to seek export opportunities. Determined to be standard from the beginning, Binh Phuoc cashew products have been built by OVF under the Newbam brand with packaging, design, packaging... meeting export standards.
At the same time, OVF registered its business on the Amazon e-commerce platform, and persistently learned and met the criteria instructed by Amazon. Thanks to that, Newbam cashew products were quickly put on Amazon shelves. In November 2022, Newbam cashews exported the first batch to the US. Up to now, Newbam cashews have been exported quite regularly to the US and Canada.
Remove barriers
According to experts, currently, e-commerce of Vietnamese enterprises is still limited. Most enterprises are small in scale, do not have enough capacity to build a brand; have poor resilience to sudden and continuous fluctuations in the market.
Not to mention, human resources in cross-border e-commerce have not yet met the requirements; there is a lack of information on trends and related regulations of foreign markets; skills and knowledge in building business strategies, building brands and protecting brands in cross-border e-commerce are still limited...
Therefore, to sell successfully on international e-commerce platforms, businesses need to understand the consumer behavior of buyers through the brand of choice, the level of trust, convenience and appropriate service, as well as build a prominent brand in the online environment. Accordingly, products when sold on the market need to be packaged beautifully, improve product quality, and use environmentally friendly and sustainable materials. In particular, products must not violate the brand.
To support businesses, Ms. Lai Viet Anh said, the Ministry of Industry and Trade is consulting to submit to the Government a Master Plan for e-commerce for the next 5 years. Accordingly, e-commerce is aimed at exporting to bring "Made in Vietnam" products to the international market and be competitive in that market, especially supporting small and medium enterprises and manufacturers to be able to sell to the global market.
In addition, Ms. Lai Viet Anh shared that currently, green and sustainable consumption is a prominent trend worldwide. Therefore, in order for Vietnamese goods to reach the global market, businesses need to consider the sustainable development factor.
From this perspective, the application of digital technology and digital transformation in e-commerce will also play a certain role. For example, customers have requirements for traceability of goods, ensuring the growing area, not violating deforestation or ensuring environmental protection requirements, anti-waste... Enterprises need to solve all these problems by digitizing the value chain production process, applying to each stage of the production process... These are factors that e-commerce must apply to improve the competitiveness of Vietnamese goods in the international market.
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