Vietnamese firms earn big from Amazon
Vietnamese firms earn big from Amazon
Many Vietnamese enterprises achieved success in 2022 after shifting to exports through e-commerce platforms, especially Amazon.
The trend is expected to continue this year.
Vietnam was among the top five countries with the highest e-commerce retail sale growth rates in 2022, according to a report by the U.S.’s market research company eMarketer.
Impressive growth
A year after beginning to sell goods on Amazon to European and American markets, ChicnChill, a Vietnamese handicraft brand, reported a growth rate of up to 700 percent.
Tran Tuan Dung, CEO of ChicnChill, said he saw the start-up thrive when a majority of Vietnamese enterprises have scaled down their operations due to the impact of the COVID-19 pandemic.
He and his team spent months studying the lifestyle in European and American markets and home decoration trends there, thereby determining the company’s key products and penetrating into these markets.
After a year, ChicnChill’s home decoration products are preferred on Amazon.
“Our target is a 200-300 percent growth rate per year,” Dung added.
Meanwhile, AnEco, a producer of compostable and environmentally-friendly plastic products, achieved great success last year thanks to trading through e-commerce platforms.
After nearly a year, AnEco added tens of thousands of customers. Its sales in the January-July period of 2022 increased five times over the figure in 2021.
AnEco’s sales through e-commerce platforms in 2022 were forecast to surge 15-20 times.
During the COVID-19 pandemic, Sunhouse, a Vietnamese housewares manufacturer, began trading its products on cross-border e-commerce platforms in early 2022.
The act was considered risky as Sunhouse, despite being popular in the Vietnamese market, is new in the global market and housewares manufacturing is the strength of many developed countries.
However, Sunhouse’s growth has been higher than expected. In the Northern American market, the growth reaches 160-200 percent per month.
Another Vietnamese brand which has enjoyed success in trading on cross-border e-commerce platforms is LAFOOCO, which produces and deals in cashew nuts.
Two weeks after launching its products on Amazon, three out of its four kinds of cashew nuts were listed among 10 new cashew nut products on the e-commerce platform.
A gateway to the world
According to many experts, international e-commerce platforms, such as Alibaba and Amazon, help start-ups and small enterprises seek new markets and minimize costs to enter the global arena.
Online export helps enterprises save costs in building distribution networks and product introduction as all negotiations and transactions are conducted online.
“It will take a company several years if it studies a market itself. However, if it joins hands with prestigious cross-border e-commerce platforms, the way to integrate into the international market will be shortened significantly,” said Le Tung, director of marketing at Sunhouse Group.
Nevertheless, some enterprises which have successfully exported their products through large e-commerce platforms said they have to invest heavily in infrastructure and digital technology to connect with foreign platforms.
In addition, they have to continuously innovate their products and marketing, offer competitive prices, keep pace with consumption trends in the world, and learn about the characteristics of each market.
According to the 2022 report by Amazon Global Selling, nearly 10 million products of Vietnamese enterprises were sold to global customers through Amazon.
Gijae Seong, Vietnam country manager for Amazon Global Selling, said, “With advantages of export supporting policies, high manufacturing capacity and fast growing e-commerce, Vietnam is in a golden period to boost online export."
Entering Vietnam in 2019, Amazon Global Selling is a program supporting enterprises in developing business. It has accessed more than 300 million consumers on Amazon from over 200 countries worldwide.
A report on the program in 2020 showed that thousands of Vietnamese enterprises had traded on Amazon and achieved a three-fold increase in sales over 2019.
The 2022 report by Amazon Global Selling revealed that despite the impact of the pandemic and the economic recession, the number of Vietnamese trade partners on Amazon soared over 80 percent and the volume of sold goods rose some 35 percent year on year.
Moreover, Vietnamese traders obtained a 45 percent growth rate in export value. Furthermore, the number of Vietnamese traders earning revenue of over US$500,000 rocketed 60 percent.
Export and trade on Amazon have created a strong driving force for Vietnamese enterprises, according to the Amazon Global Selling report.
The five best-selling commodities of Vietnamese enterprises on Amazon in 2022 included housewares, household appliances, garment products, healthcare products, and family utensils.
