Vietnamese SMEs achieve breakthrough growth with cross-border e-commerce
Vietnamese SMEs achieve breakthrough growth with cross-border e-commerce
Despite the economic impact of the COVID-19 pandemic, Vietnamese small- and medium-sized enterprises (SMEs) reached significant achievements last year by stepping up e-commerce business on Amazon.
On December 9, Amazon Global Selling (AGS) has released its second annual Small and Medium Enterprise Empowerment Report in Vietnam with insights into the potential of Vietnam's exports and cross-border e-commerce. Over the past 12 months from September 1, 2020 to August 31, 2021, Vietnamese SMEs sold nearly 7.2 million products to Amazon customers globally, up 34 per cent on-year.
Accordingly, the number of Vietnamese SMEs that surpassed $100,000, $500,000, and $1 million in sales on Amazon stores grew more than 18, 53, and 40 per cent, respectively, just after one year. Exports of Vietnamese SMEs selling with Amazon have increased 48 per cent on-year.
Amazonand Vietnamese businesses have brought "Made in Vietnam" products to the global market
Beside the impressive growth in the number of SMEs and export products via Amazon, the report also reveals that Vietnamese vendors have boldly experimented and chosen a more modern and professional approach to operations, logistics, and customer service.
Specifically, hundreds of Vietnamese sales partners have taken advantage of the Fulfillment by Amazon (FBA) service last year. Through this service, businesses do not need to invest their own resources to set up and operate supply, shipping, warehousing, and customer service. With FBA, Amazon takes care of all shipping and logistics from their global fulfilment centres.
Several Vietnamese brands which only do business in the domesctic market have boosted exports via e-commerce. They have successfully brought Vietnamese brands to the global market such as Minh Long Ceramics, Royal Helmet, Lafooco cashew, and Truong Tho sea grapes.
Ly Huy Sang, deputy director of Minh Long I Co. Ltd., said that, "As a traditional ceramics manufacturing and trade company, Minh Long Ceramics recognises the importance and challenges of brand positioning when entering the global market. Amazon has helped us fulfil our goal of reaching out to the international retail industry and bringing the quintessence of Vietnamese ceramics to clients around the world last year.”
Sang highly appreciates the FBA model in which Amazon assists businesses in logistics and customer support on a worldwide scale. This model helps the company bring "Made in Vietnam" ceramic products to customers worldwide with many postive feedbacks.
Amazon Global Selling supports Vietnamese businesses reach out to global market
Global e-commerce giant Amazon Global Selling officially entered to Vietnam in 2019. After only two years, Amazon Global Selling has built a dedicated team of employees to directly support and accompany Vietnamese sales partners in Ho Chi Minh City in 2019 and Hanoi in 2021.
Amazon has invested $18 billion to support its seller partners worldwide such as logistics, teams, services, programmes, and tools. The investments enable sales partners to connect their brands with millions of customers worldwide. In 2021, Amazon Global Selling publishes more than 50 “Seller University” courses in Vietnamese and organises more than 70 events, seminars, and live training programmes to provide sales partners with information and knowledge of Amazon policies, products, inventory, pricing, and brands, among others.
In addition, Amazon Global Selling also strengthens cooperation with the Vietnam E-commerce and Digital Economy Agency (IDEA) and industry associations, thereby contributing to raising awareness about exports through e-commerce and promoting the development of the "Made in Vietnam" brand in the international market.
Vietnam boasts strong manufacturing resources and a generation of sensitive, adaptable digital citizens. Thanks to the advantages, more and more "Made in Vietnam" products have been accepted by the international market. Over the past years, Vietnam is welcoming a large wave of e-commerce, improving the chance for Vietnamese enterprises and brands to join the global commercial trend with Amazon.
Amazon Global Selling is a programme that aims to assist businesses from all over the world in growing their businesses on a global scale, connecting with Amazon customers worldwide, and establishing multinational brands. By selling on Amazon, sales partners of all shapes and sizes can access more than 300 million Amazon consumer accounts worldwide, including more than 200 million members of Amazon Prime and more than five million corporate customers.
