9:31:29 AM | 6/20/2023
Vietnam is ranked as one of the top five fastest-growing e-commerce markets in the world with an annual growth rate of 20%. Many Vietnamese companies are ready for online export to bring Vietnamese products to the world. However, they still face numerous challenges such as lack of knowledge, capacity, regulations and costs.
The opening ceremony of the conference on cross-border e-commerce
Much room for growth
According to the latest study by Access Partnership, Vietnam's e-commerce export value may reach VND296.3 trillion (US$13 billion) by 2027 if domestic firms are fully supported and speed up e-commerce applications to export their products and services.
The research into 300 micro, small and medium enterprises (MSMEs) in Vietnam showed that 86% of respondents think that they will not be able to export without e-commerce. Besides, local MSMEs are aiming to expand the market to other countries such as the United States, Japan and Europe in the next five years.
Speaking at the Cross-border E-commerce Conference in Vietnam, themed "Asia's Elite - Global Breakthrough” organized by Amazon Global Selling in collaboration with the Vietnam E-commerce and Digital Economy Agency (iDEA) under the Ministry of Industry and Trade on June 7, iDEA Deputy Director Lai Viet Anh said: “Cross-border e-commerce is a booming trend in many countries around the world. In Vietnam, with retail e-commerce growth of over 20% a year, this new potential industry is assessed to have great room for growth and matches the Government's policy on digital economic development.”
Mr. Gijae Seong, Head of Amazon Global Selling Vietnam, believes that cross-border e-commerce has many benefits for businesses. Firstly, it helps businesses quickly capture customer information and improve their products to meet investors’ demands faster. Secondly, the synergy of digital transformation and globalization helps globalize not only products but also product brands.
In 2022, Vietnam's cross-border e-commerce export value exceeded VND80 trillion (US$3.5 billion). If Vietnamese companies are better supported and apply e-commerce to export, this figure may reach VND300 trillion (US$13 billion) in the next five years.
In 2022, Amazon sales of Vietnamese companies soared 80% year on year and the value climbed 45%. Best performing Vietnamese products on Amazon included home decorations, fashion products, beauty accessories, and processed agricultural products.
"Amazon encourages businesses to change their thinking, not only outsourcing but also building their brands to enhance product value and make business more sustainable in the world market,” he said.
Strengthening connectivity, promoting cross-border exports
Despite having much room for development, according to a report by Access Partnership, Vietnam's MSMEs still face numerous challenges in e-commerce export, including four main issues: Knowledge, capacity, regulations and cost.
Sharing the same view, iDEA Deputy Director Lai Viet Anh said that Vietnamese companies are still facing many barriers like strict regulations in import markets; human resources for product development and product competitiveness; cost; and information. These barriers are common to import and export activities, not only to exports via e-commerce platforms.
iDEA has diversified its programs to accelerate digital transformation, perfected online export policies, understood barriers faced by MSMEs, and introduced solutions, she added. Besides, iDEA has provided training programs to help Vietnamese companies expand their international business and achieve success globally.
In 2022, as many as 1,300 program-participating companies shared information and knowledge through nine training courses organized by Amazon Global Selling and iDEA in collaboration with local partners. From 2022 to 2026, iDEA pledged to support training 10,000 companies to develop their human resources for cross-border e-commerce.
“In the coming years, there will be a series of events with topics revolving on potential industries to share success stories and networking. These activities promise to bring specific knowledge and information about cross-border e-commerce to Vietnamese businesses,” she emphasized.
Many Vietnamese businesses are ready to export online but do not know where to start and how to expand, said Gijae Seong.
In support of Vietnamese companies, Amazon strives to realize five goals to help Vietnamese companies to accelerate cross-border e-commerce applications: Increasing awareness of cross-border e-commerce; training companies to join cross-border e-commerce; building global brands for Vietnam; encouraging Vietnamese businesses to use Amazon's logistics services; and connecting the seller community in Vietnam.
However, Vietnam is transitioning from traditional export to online export, so there are still many policy gaps that need to be filled, he added.
Amazon is also actively referencing the business environment of countries with developed cross-border e-commerce, listening to sellers’ opinions in Vietnam and transmitting to Vietnamese government agencies for research and development of appropriate and complete e-commerce policies, thereby facilitating and promoting cross-border e-commerce development.
By Thu Ha, Vietnam Business Forum
Vietnamese
