Amazon opens door to Vietnam exports in herald of market entrance

Mar 7th at 15:15
07-03-2018 15:15:49+07:00

Amazon opens door to Vietnam exports in herald of market entrance

Amazon, the world’s largest Internet retailer by revenue and market capitalization, is set to officially open up its platform to exports from Vietnamese businesses this month, an insider told Tuoi Tre (Youth) newspaper.

Amazon’s head of sales in Singapore would be in Vietnam later this month for an e-commerce forum held in Hanoi and Ho Chi Minh City, where the executive is expected to sign a deal with the Vietnam E-Commerce Association (VECOM), a VECOM representative said on Tuesday.

The 2018 Vietnam Online Business Forum (VOBF 2018) will open in Hanoi on March 14, before moving to Ho Chi Minh City on March 16.

The Amazon sales executive will take to the stage at both events to outline the company’s analysis of Vietnam’s fast-growing e-commerce market, as well as its strategies in the Southeast Asian nation.

The upcoming deal, which was discussed at a meeting late last year between Amazon and VECOM, would open the door for Vietnam’s small and medium-d enterprises to reach foreign markets through Amazon’s platform.

The move is seen as the company’s first step in wading into Vietnam’s ludicrous online retailing market, which reported a growth rate of 25 percent in 2017 and is showing no signs of slowing down, according to VECOM.

There are reportedly thousands of websites offering online shopping experience in the Southeast Asian country of 93 million people, which posted an average increase in revenue of 35 percent last year, VECOM said.

As online retailing blooms in Vietnam, delivery services also saw hiking growth rates of between 62 percent and 200 percent in 2017, the association added.

The entrance of Amazon into Vietnam is forecast to be warmly welcomed by local consumers, who have resorted to ordering via third parties or paid extra shipping fees to buy products sold on the platform.

Amazon’s Vietnam venture will not be entirely smooth sailing, economic experts predict, as the U.S. tech giant will face fierce competition from local powers and Chinese investors that have spearheaded the ‘foreign invasion’ into the market.

Chinese e-commerce giant JD.com recently poured US$44 million into Tiki, one of Vietnam’s first and largest Internet retailing platforms, to become a strategic shareholder at the company.

China’s Alibaba, the world’s top online retailer by total sales, has also spent nearly $1 billion taking over the control of the Southeast Asian business of German e-commerce company Lazada, including its operations in Vietnam.

Singapore’s Shopee and South Korea’s Lotte have announced their multimillion-dollar plans to remain in the race for a fair share of Vietnam’s e-commerce market as well.

Amazon’s chief executive and founder Jeff Bezos is the world’s first centi-billionaire, according to the latest Forbes rich list.

Bezos' net worth has now surpassed the $112 billion mark, making him the only person on the ultra-wealthy list worth more than $100 billion.

tuoitrenews



NEWS SAME CATEGORY

Two South Korean retailers to partner with VN

Two retail and distribution groups from South Korea - K-holdings and Coupang - will co-operate with Vietnamese partners during their trip to Ha Noi on March 22.

VN to up investments in Bangladesh

Viet Nam will promote its investment activities in Bangladesh, especially in the areas of mutual co-operation such as telecommunications, information technology...

Runaway investors show need for increased control over FDI firms

The prime minister has once again requested the Dong Nai People’s Committee to report on the latest movements in the case of the runaway investor at South...

Parkson’s demise and the rise of competitors

Parkson’s demise in Vietnam marks an important transition in the retail sector due to changing shopping behaviours and the rise of shopping malls invested by...

Vietnamese e-commerce market a tough nut to crack

Despite the fast growth of e-commerce, Vietnam is not an easy market to crack open, with many players running losses and some being forced to withdraw.

VN wants more investment in India

Viet Nam wants to boost investment with India in the fields of information-technology, biotechnology, renewable energy, building machinery, chemicals...

Revenue of retail good up by 10.1%

The total revenue from retail goods and services reached VND704 trillion (US$30.88 billion) in the first two months of this year, a year-on-year increase of 10.1...

Vietnam’s foreign retail giants see different tales

While numerous foreign retail giants are planning to increase investment and expand their businesses to exploit the market, Malaysian retail group Parkson has seen...

VN enjoys $1.08b trade surplus

Viet Nam recorded a trade surplus of approximately US$1.08 billion in the first two months of this year, mainly fuelled by foreign-invested businesses, which saw a...

In India, President Quang aims to boost bilateral trade ties

President Tran Dai Quang’s upcoming official visit to India is expected to yield a road map for strengthening bilateral cooperation in the future. The visit, which...


MOST READ


Back To Top