Cross-border e-commerce expansion opportunities for Vietnamese businesses
Cross-border e-commerce expansion opportunities for Vietnamese businesses
For Vietnamese companies seeking to trade internationally, the dynamism of global e-commerce offers significant opportunities.
The steady growth of global e-commerce coupled with supportive government policies enable Vietnamese companies to expand their international footprint, Gijae Seong, CEO of Amazon Global Selling Vietnam, said at the Cross-border E-Commerce Conference 2024 in Hanoi on October 9.
An overview of the event. Photo: Binh Minh/The Hanoi Times |
Amazon Global Selling Vietnam has unveiled its 2025 strategy which aims to enhance cross-border e-commerce capabilities and provide essential resources for small and medium-sized enterprises (SMEs) to promote e-commerce exports in Vietnam.
Seong also noted that global retail e-commerce sales are projected to reach US$5.8 trillion in 2023 and are expected to grow by 39% in the coming years, potentially exceeding US$8 trillion by 2027. He stressed that the dynamism of global e-commerce opens up significant opportunities for Vietnamese businesses seeking to trade internationally.
A recent report from Access Partnership reveals that Vietnam's B2C (business to consumer) e-commerce exports reached VND86 trillion (US$3.4 billion) in 2023, with small and micro enterprises contributing 26%. As many as 93% of small and micro enterprises surveyed said they could not export without e-commerce.
These positive signals suggest that Vietnamese companies are well-positioned to seize e-commerce export opportunities and contribute to the growth of the national digital economy. This is in line with the government's National E-Commerce Development Master Plan for 2021-2025, which emphasizes support for the development of cross-border e-commerce in Vietnam.
The CEO added that over the past five years, thousands of Vietnamese businesses have started and expanded their global operations with Amazon by selling products and building brands while expanding their international presence.
Sales by Vietnamese merchants on Amazon have increased more than 300%, while participation in Amazon's Brand Registry program has increased 35-fold. The top five product categories experiencing the highest growth among Vietnamese sellers on Amazon include health and personal care, home and kitchen, apparel, and beauty products.
Gijae Seong highlighted some Vietnamese companies with impressive growth thanks to e-commerce. In the wood product category which has been one of Vietnam's strongest export items for years, companies like TIDITA – a Vietnamese wooden kitchenware company, and Beefurni – a home furniture firm, are successful examples of combining traditional craftsmanship with innovative e-commerce strategies.
In the health and personal care sector, brands such as CVI Pharma have made inroads into the global market. The apparel and fashion industry has also seen rapid growth, with SIXDO as an example.
The beauty industry has Abera which is delivering quality products to consumers around the world.
In addition, products such as herbs, cashews, dried fruits, herbal tea, and coffee become popular on Amazon's e-commerce platform. It's also the case of Trung Nguyen coffee and startups like NewBam and Lafooco.
"These brands demonstrate the potential and ability of Vietnamese businesses to excel in global e-commerce. They have leveraged Amazon's global resources and investments in cross-border selling programs," Seong said.
These figures underscore the Vietnamese business landscape in global e-commerce.
