“E-commerce is overshadowing traditional promotion tools," said Mr Tran Huu Linh, Head of E-commerce and Information Technology Department under the Ministry of Industry and Trade at the seminar entitled “Promoting Export for Vietnamese Enterprises through E-commerce” hosted by the Ho Chi Minh City Branch of the Vietnam Chamber of Commerce and Industry (VCCI-HCM) in collaboration with the US-based MFG.com Group. This event aimed to support help businesses to promote e-commerce application to increase exports and expand business opportunities in the context that the economy is vulnerable to potential risks.
VCCI-HCM Director Vo Tan Thanh said Vietnam is an export-driven economy with an export turnover of US$96 billion in 2011, representing an increase of 34 percent. In the first five months of 2012, export growth was 24 percent. These impressive figures are the fruit born from dynamic and active endeavours of local enterprises. In addition to trade promotion in traditional methods, a majority of Vietnamese businesses have effectively utilised e-commerce applications to introduce their products. More than 45 percent of enterprises in Vietnam have their own websites to introduce their products and services as well as build up their images.
Currently, Vietnam is developing high-quality suppliers which are becoming an important part of the global material supply chain. Small and medium companies will be developing rapidly thanks to their direct connection with customers from North America, the European Union and Japan. As the largest online marketplace for manufacturing, textile and packaging industries, MFG.com is expected to serve as a useful bridge for Vietnamese enterprises to access and expand in US and EU markets.
Mr Tran Huu Linh said a recent survey showed that e-commerce is being utilised more often to in business operations by Vietnamese businesses and e-commerce tools are strongly dominating access to products and transactions on the market. Particularly, to place orders, 91 percent of companies use telephones, 82 percent use facsimiles, 64 percent use emails, and 10 percent use websites.
Meanwhile, to receive orders, 92 percent of companies use telephones, 82 percent use facsimiles, 66 percent use emails and 11 percent use websites. Besides, businesses open websites to popularise their brands, products and images. Vietnam currently has 35 e-commerce exchanges with over 3 million members. As many as 1.5 million deals were successfully reached with a total value of over VND4,000 billion. Unofficial e-commerce exchanges are even in greater number.
He stressed that while traditional trade promotion instruments like attending trade fairs, exhibitions and carrying out market surveys are less effectiveness, more time-consuming and more expensive, e-commerce solutions are more effective and beneficial to users. He highly appreciated the MFG.com e-commerce model which mainly focuses on the manufacturing and apparel industries.
From now to 2015, the Government will add more e-commerce development policies like building e-commerce infrastructure systems and encouraging businesses to deploy e-commerce in their production and business activities.
Mitch Free, founder and CEO of MFG.com, said: In general import and export business, when a company wants to find a partner, e-commerce will be the first means it uses. Vietnam is highly appreciated for its machine and equipment manufacturing, garment and textile. Many foreign partners want to do business with Vietnamese businesses but they find it hard to verify partner and customer information. Therefore, e-commerce is an important vehicle that Vietnamese businesses need to take advantage to have easy access to global economies and expand their effective business networks. At the seminar, he introduced an international marketing method for suppliers to connect with international buyers to reduce costs but while boosting efficiency. Specifically, buyers worldwide use MFG.com to locate appropriate suppliers to fabricate designed products. Buyers show orders and get quotes from suppliers and utilise MFG.com search and valuation vehicles to find the best contract manufacturers for their components.
My Chau
Vietnamese
