Ready to "enter the race" of cross-border e-commerce

With more than 182 km of border with Yunnan Province (China), Lao Cai Province is an important gateway for Vietnamese goods, ASEAN countries with the Southwest market (China) and vice versa. In recent years, especially after the Covid-19 pandemic, the shopping behavior of consumers in both countries has changed, leading to the strong development of e-commerce.

Statistics from the Lao Cai industry and trade sector show that in 2024, the total import-export turnover through the province's border gates will reach over 3.4 billion USD, of which the group of goods traded via e-commerce platforms accounts for about 12%. This figure is forecast to continue to increase sharply in the coming time. Not standing outside the trend of e-commerce development, Lao Cai province has shifted from a "traditional goods transit station" to a border e-commerce center. Local e-commerce platforms, bonded warehouses, quality inspection stations, modern and smart logistics infrastructure, etc. have gradually formed a solid foundation for Lao Cai to access the cross-border e-commerce ecosystem.

Not only that, Lao Cai is one of the few provinces in Vietnam that has a modern international border gate system, directly connecting to the Chinese market - the world's second largest economy and also a country with a leading e-commerce ecosystem. The fact that Vietnamese goods can "touch the door" of the Chinese market after a few hours of transportation from Hanoi to Lao Cai through a modern connecting transportation system is an advantage that not every locality has.

Assessing the potential of cross-border e-commerce in Lao Cai, Ms. Nguyen Thi Hoai An, Vice President of the Alliance for Cross-Border E-Commerce (ACBC) commented: In recent years, Lao Cai province (Vietnam) and Yunnan province (China) have reached many bilateral cooperation agreements. The two sides have strengthened cooperation in exhibitions and fairs, promoted promotion and exchange between businesses, supported businesses to develop and expand markets, and jointly promoted economic and trade...

“Lao Cai province (Vietnam) and localities in Yunnan province (China) have reached an agreement in promoting the development of cross-border e-commerce; early establishment of a customs clearance center at Kim Thanh border gate, active support in promoting and attracting investment from large corporations and enterprises in developing infrastructure and e-commerce support services (ZTO Express, Alibaba...) so they can participate in the cross-border e-commerce “race” very early” - Ms. An further assessed.

According to the analysis of Ms. Le Thi Hoang Oanh, Head of Export Consulting Department in the Northern region, OSD Group (Alibaba's official authorized agent in Vietnam): Lao Cai province has a lot of room to develop cross-border e-commerce with a number of potential agricultural products, OCOP products (cinnamon, tea, honey, medicinal herbs, salmon, sturgeon...), handicrafts such as brocade, embroidery and lace products and many minerals, precious metals, rare earths...

Although there are many advantages and it is developing, many experts also assess that Lao Cai's cross-border e-commerce sector is not yet commensurate with its potential because it has not yet accessed a variety of online export sales channels; high-quality human resources in e-commerce and investment from businesses in this content are still limited; international certificates to bring products are not diverse and there are not many products with systematic investment in brand building; business support lacks depth...

While grasping the potential and advantages, while facing the difficulties and barriers, Lao Cai province has gradually proposed solutions to promote the development of cross-border e-commerce. In particular, focusing on connecting local products, strengths of Lao Cai with the Yunnan market; connecting other domestic products of Vietnam and China through exhibitions and product introductions; promoting the establishment of an R&D center to support access to the Chinese market, connecting manufacturers - service providers - distributors on both sides; building a medicinal supply chain; developing a comprehensive logistics network from Vietnam to China, bringing goods from factories to customers; classifying export goods and choosing a suitable import model to China; Focus on promoting the development of online export infrastructure (O2O sales model; exhibition areas combined with livestream rooms; developing human resources for local KOLs, KOCs; building e-commerce platforms to support B2B, B2C online exports...).

In addition to the solutions that the province is implementing and the proposals of enterprises on developing cross-border e-commerce, so that Lao Cai province is ready to "join the race" of cross-border e-commerce, at the Lao Cai province's e-commerce development conference in 2025 held in mid-March, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said: Lao Cai province needs to promote the application of digital technology, digital transformation, and raise awareness of businesses and people about the benefits and opportunities of cross-border e-commerce. The Ministry of Industry and Trade will closely coordinate with Lao Cai province to implement training programs and support local businesses to improve their business skills on digital platforms.

Lao Cai province needs to pay attention to attracting investment, developing logistics infrastructure, warehouses, electronic payment systems and cross-border e-commerce to improve the efficiency of goods and services circulation. Coordinate with relevant units to support local enterprises in building brands, registering trademarks, tracing product origins and meeting international standards, thereby enhancing the value and competitiveness of products in the global market. Coordinate with relevant units and logistics enterprises to build a convenient e-commerce goods clearance mechanism, apply digital solutions to supply chain management and promote international cooperation...

“Lao Cai province needs to continue promoting good cooperative relations with Yunnan province (China), ASEAN and other potential markets to promote cross-border e-commerce development,” the Deputy Minister of Industry and Trade emphasized.

Source: https://baolaocai.vn/san-sang-nhap-cuoc-dua-thuong-mai-dien-tu-xuyen-bien-gioi-post400410.html