Rosy prospects for online exports
Rosy prospects for online exports
Increasing numbers of local firms have been joining global e-commerce platforms after overcoming the initial barriers, leading to expectations that the country’s online exports could soon break the $10 billion revenue mark.
For nearly three years now, An Phat Holdings – a leader in environmentally friendly plastic production – has been selling its bioproducts on Amazon to consumers in the US and EU markets.
Nguyen Le Thang Long, deputy CEO of An Phat Holdings said, “Online exports prove a smart move in the digital era. Doing business on Amazon helps the company to directly approach the end-users. Our sales revenue through this platform rose 21-fold last year compared to 2021.”
An Phat Holdings has leveraged the Amazon platform to reach US and EU consumers for several years
Similarly, in 2021 Long An Food Processing Export JSC (Lafooco) started selling its cashew nut products on Amazon.
To achieve this, the company has had to implement many procedures required by Amazon, such as acquiring a certificate from the US Food and Drug Administration, and compliance with US stamp and packing requirements.
As of now, the company’s diverse processed cashew nut products are selling well on Amazon. Having exported cashew nut products reach US consumers bearing the Vietnamese firm's brand was a big motivating for Lafooco to make strides selling products on Amazon.
According to Lai Viet Anh, deputy director general of the E-commerce and Digital Economy Agency under the Ministry of Industry and Trade, overseas e-commerce has helped Vietnamese companies to upscale their businesses, which in turn has significant spillover effects on many other firms.
The global business-to-consumer revenue through e-commerce platforms is estimated to reach $2.88 trillion in 2023.
The product sectors with bright export potential on the Amazon platform include consumer goods, fine handicrafts, wooden furniture, and processed agricultural items.
More businesses join training programmes offered by Amazon to facilitate their business on international e-commerce platforms and access more end users.
Figures by the UK-based public policy consultancy Access Partnership show that Vietnam’s business-to-consumer (B2C) online export revenue approximated $3.5 billion in 2022, and is expected to reach $5.5 billion by 2027.
In a more upbeat scenario, this firm even puts Vietnam’s online export revenue at $13 billion by 2027.
The global B2C revenue through e-commerce platforms is estimated to reach $2.88 trillion in 2023.
The constant development of e-commerce markets among Vietnam’s major training partners such as China, Japan, South Korea, and the EU ushers in multiple opportunities for firms with solid products and business acumen.
CEO of Amazon Global Selling Vietnam Gijae Seong reported that, in 2022, the export value of Vietnamese businesses selling on Amazon showed a 45 per cent jump on-year.
Vietnamese partners sold nearly 10 million items on Amazon’s online platform across the globe.
