2023-05-20 02:14:00
Cross-border e-commerce is on everyone’s lips. Business without borders, endless growth… There’s no denying it: this type of business, more topical than ever, offers almost unlimited possibilities. Vietnamese companies must not miss the train.
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International trade is far from new. History shows that more than 5,000 years ago, historical civilizations were already active in the trade of goods across continents. These included the prominent trade in spices, those high-value, luxury ingredients that were appreciated and coveted by many cultures. In recent years, e-commerce has fundamentally changed the way of doing business: every day, millions of purchases are made online and as many deliveries made to consumers’ homes. This trend is already undergoing a new revolution: consumers are more and more inclined to make a purchase from manufacturers abroad. Today, one in seven e-commerce purchases comes from cross-border e-commerce.
| E-commerce has seen spectacular growth in Vietnam. |
| Photo : VNA/CVN |
A representative from Amazon, the American e-commerce giant, said Vietnamese consumers are the fastest growing online community in Southeast Asia and Vietnam has many advantages for Amazon. Previously, the average cost to open a physical store in the United States was one million USD, but now everything has changed thanks to the emergence of online sales platforms, led by Amazon. This not only brings benefits to sellers in the United States, but also to many other countries, including Vietnam.
A Breakthrough Era
In Vietnam, the Agency for E-commerce and Digital Economy, under the Ministry of Industry and Trade, and Amazon Global Selling Vietnam have implemented the initiative “Cross-Border E-commerce: An Era of of breakthrough”. Initiated by Amazon and sponsored by the Ministry of Industry and Trade, this initiative is being rolled out over five years, with face-to-face and online training programs across the country. The initiative aims to support the development of human resources for cross-border e-commerce, thereby opening up export opportunities for local businesses through e-commerce.
According to Gijae Seong, national director of Amazon Global Selling Vietnam, this initiative is expected to involve more than 10,000 companies in the country during the period 2022-2026. Through it, companies will be equipped with specialized knowledge on exports, obtain better market information and improve the skills of their personnel. The initiative will also bring Vietnamese companies closer to their counterparts around the world, promoting the development of Vietnamese brands in the global market.
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| According to Amazon, Vietnamese consumers are the fastest growing online community in Southeast Asia. |
| Photo: AFP/VNA/CVN |
Although the global economy has not yet fully recovered from the COVID-19 pandemic, cross-border e-commerce, in Vietnam in particular, has seen growth. From September 1, 2021 to August 31, 2022, nearly 10 million “made in Vietnam” products were sold to customers around the world on Amazon. Moreover, the number of Vietnamese business partners on Amazon has also increased by 80% compared to the same period the previous year. With a very positive outlook, Gijae Seong announced the company’s 2023 strategy for the Vietnamese market, emphasizing continued awareness and readiness for cross-border e-commerce.
“Cross-border e-commerce is a next level of innovation. It lets you sell to countries you’ve never been to without having to open a physical store,” Gijae Seong said. According to him, manufacturers are focusing on Vietnam, making it a manufacturing hub for Southeast Asia and is an important manufacturing country in the world. During the pandemic, the Amazon leader highly appreciated the stable development of the economy, as well as the government’s efforts to support exports, creating good conditions for the participation of a growing number of Vietnamese sellers.
According to data from Amazon Global Selling, Vietnamese sellers are doing business efficiently, especially in the segments of household appliances, kitchen products, clothing, health care products, as well as household tools and small gadgets. ”Vietnamese products are environmentally friendly, have unique designs and are different from those of other countries.,” remarked Gijae Seong. And to add:I hope that in the future there will be more Vietnamese who can successfully launch on Amazon.com”.
Challenges to overcome
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| About 88% of companies surveyed believe that e-commerce is essential to their export capacity. |
| Photo : CTV/CVN |
In 12 months (from 1is September 2020 to August 31, 2021), nearly 7.2 million Vietnamese SME products were sold to Amazon customers globally, up 34% year-on-year. This platform estimates that Vietnam’s cross-border e-commerce revenue will reach USD 11 billion by 2026.
The process of digital transformation or “electronization” in foreign trade has helped to lighten the administrative workload, increase the quality of public services and speed up the processing times for documents related to administrative procedures. Digital transformation in the import-export field promotes companies’ participation in international trade activities, while saving time, cost and effort, said Gijae Seong. About 88% of companies surveyed believe that e-commerce is essential to their export capacity.
However, alongside opportunities for developing and expanding markets through cross-border e-commerce, Vietnamese enterprises still face challenges such as lack of information, understanding of foreign consumers, insufficient preparation of personnel, lack of commercial strategy, brand protection measures.
The Linh/CVN
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