Vietnam's retail e-commerce sales have grown at an average rate of about 20% over the past 10 years.
Cross-border e-commerce has created many opportunities for Vietnamese businesses to access international markets and increase import and export activities. This result is reflected in the number of products sold by Vietnamese sales partners and the revenue of partners has increased tenfold in the past 5 years.
A series of positive results mentioned above were analyzed at the Cross-border E-commerce Conference with the theme: "The quintessence of Vietnamese goods takes off globally," organized by Amazon Global Selling Vietnam Company in coordination with the Department of E-commerce and Digital Economy (Ministry of Industry and Trade) on May 22, in Hanoi.
Success from global trade connections
In recent years, the explosive growth of e-commerce has actively supported Vietnam's import and export activities. Statistics from the Ministry of Industry and Trade show that retail e-commerce sales have grown at an average rate of about 20% over the past 10 years, making Vietnam one of the countries with the fastest e-commerce growth rates in the region and the world.
In the context of Vietnam's increasingly deep integration with the world economy, along with opportunities from new-generation free trade agreements, the trend of shifting from traditional business to digital platforms is considered an effective solution to help businesses penetrate and expand export markets.
Mr. Ngo Sy Hoai, Vice President and General Secretary of the Vietnam Timber and Forest Products Association (VIFOREST), said that Vietnam's wood industry has had 20 years of continuous growth with an annual growth rate of over 10%. Vietnam is becoming one of the world's leading wood processing and trade centers.
Specifically, in the group of interior and exterior wood products, Vietnam ranks second in the world, after China. In the first 4 months of 2024 alone, export turnover reached nearly 5 billion USD, an increase of 23.7% over the same period last year. On the other hand, Vietnam spent 801 million USD importing wood materials for processing and creating added value, and imports increased by 26.4%," said Mr. Ngo Sy Hoai.
Speakers at the discussion session on cross-border e-commerce.
Despite such developments, the Vietnamese wood industry still reveals many weaknesses, difficulties and challenges in the coming time. Specifically, enterprises participating in wood commercial processing are mainly small and medium enterprises, the main form of production is processing according to designs and orders from external importers, so the added value is still limited...
“Promoting Digital Transformation and Green Transformation in the wood industry and other industries and taking advantage of the benefits of cross-border e-commerce, the wood industry is assessed by Amazon as one of the top industries using e-commerce effectively and has top sales revenue on this platform in Vietnam,” Mr. Ngo Sy Hoai shared.
For the textile industry, although e-commerce goes directly to consumers and output is often small, it is one of the fastest means to reach consumers as well as an effective solution for businesses to build their brands.
Mr. Truong Van Cam, Vice President and General Secretary of the Vietnam Textile and Apparel Association (Vitas) shared that textile and garment is also one of the five industries with quite good cross-border e-commerce results. Statistics over the first 4 months of 2024, the entire textile and garment industry exported 12.5 billion USD, an increase of about 7% over the same period last year.
“Through Amazon, textile products will reach customers directly and through this cross-border e-commerce channel, the position of Vietnamese textile products will also be affirmed through competitive prices, good quality, and fast delivery time. Therefore, the association hopes that Amazon will help businesses see their strengths, weaknesses, and stages that need to be changed in order to gradually improve the value chain, thereby achieving more success through e-commerce,” said Mr. Truong Van Cam.
Enhance your global online presence
In fact, not only large enterprises, but also small and medium enterprises with the "support" of cross-border e-commerce have opened the door for businesses to bring their brands to the world.
Mr. Phan Van Hieu, Chairman of the Board of Directors, General Director of CVI Pharma Company shared that in the past, small and medium enterprises had great difficulty in accessing the world market from trade promotion, finding partners and not having enough resources to do so. Now, enterprises have the opportunity to quickly and easily, at a low cost and have the opportunity to sell their products to foreign customers, while legal procedures... including human resources in the field of e-commerce serving sales on cross-border e-commerce platforms are all supported by Amazon.
“This is a great opportunity for businesses to convert to multi-channel sales and direct export to the world, so when participating in this playground, businesses can easily access the market…,” said Mr. Phan Van Hieu.
Assessing the effectiveness of cross-border e-commerce for Vietnamese businesses, Mr. Gijae Song, Managing Director, Amazon Global Selling Vietnam, informed that in just the last 5 years (from 2019-2023), the number of products sold by Vietnamese sales partners on Amazon has increased by more than 300%.
At the same time, the number of Vietnamese sales partners achieving revenue of 1 million USD/year on Amazon increased nearly 10 times and the number of Vietnamese sales partners using Fulfillment by Amazon (FBA) increased by more than 300%...
“If a business tries to learn about a market on its own, it will take several years. However, if it joins hands with cross-border e-commerce platforms, the path to international expansion will be significantly shortened,” said a representative of Amazon Global Selling Vietnam.
Mr. Gijae Song, Managing Director, Amazon Global Selling Vietnam, informed about the 5-year journey of Amazon Global Selling's cooperation with the Ministry of Industry and Trade in the field of cross-border e-commerce.
According to the report of the Department of E-commerce and Digital Economy, the global e-commerce market is forecast to have strong growth with expected revenue reaching 7.4 trillion USD by 2025. In the context of Vietnam's increasingly deep integration with the world economy, along with opportunities from new generation free trade agreements, the trend of converting from traditional business to digital platforms is considered an effective solution to help businesses penetrate and expand export markets.
However, in reality, accessing major e-commerce platforms in the world is still difficult, especially for many businesses in the Northern region, because human resources for cross-border e-commerce have not yet met the requirements; Lack of information on trends and related regulations of foreign markets; Skills and knowledge on building business strategies, building brands and protecting brands in cross-border e-commerce are still limited.
To resolve these shortcomings, Mr. Nguyen Van Thanh, Director of the Center for E-commerce Development (Department of E-commerce and Digital Economy) said that in addition to activities to promote exports and domestic consumption of local products through e-commerce, in recent times, the Department has coordinated with provinces and cities to implement a series of regional linkage activities in e-commerce development, training to improve the capacity of State management on e-commerce for localities, supporting localities and businesses in Digital Transformation; promoting local specialty products on San Viet and Digital platforms.
Enterprises wishing to participate in the E-commerce Development Training Program can register with the Department of Industry and Trade of provinces and cities nationwide to receive support and specialized skills training to participate in the cross-border e-commerce market in the most convenient way.
“The E-commerce Development Center is also assigned to coordinate with Amazon Global Selling to organize training courses for businesses in need to have the best preparation when participating in cross-border e-commerce on the Amazon platform, on that basis, businesses can grasp and approach opportunities and importers from trading partners to increase export turnover in the coming time,” Mr. Nguyen Van Thanh added.
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