Cross-border e-commerce surge propels coffee exports

Cross-border e-commerce surge propels coffee exports

As Vietnam advances its digital trade revolution, cross-border e-commerce is playing an increasingly vital role in economic expansion, especially for major export sectors like coffee.

Cross-border e-commerce surge propels coffee exports

At a mid-January conference to review 2024 and deploy tasks in 2025 from the government and local authorities, the Department of E-Commerce and Digital Economy (DEDE) under the Ministry of Industry and Trade revealed that Vietnam’s e-commerce market surpassed $25 billion last year, marking a 20 per cent increase on-year. This sector constitutes 9 per cent of total retail sales and consumer service revenue and accounts for two-thirds of the country’s digital economy.

“The robust double-digit growth of Vietnam’s e-commerce and digital economy places the country among the world’s top 10 fastest-growing e-commerce markets, serving as a critical engine for digital transformation and economic expansion,” stated the department.

A month prior, at a seminar on developing online exports organised by the Vietnam E-commerce Association and Access Partnership, experts projected that Vietnam’s e-commerce export value would reach $5.8 billion by 2028.

Tran Van Trong, the association’s general secretary, stressed the necessity of tailored policies and strategic solutions to unlock the full potential of cross-border e-commerce. “In recent years, Vietnam’s e-commerce sector has witnessed remarkable growth, particularly in cross-border trade,” said Trong. “Online exports have become a standout opportunity and, with the right policies and strategic solutions, they have the potential to drive substantial contributions to the national economy.”

Megan Lim, manager for economics strategy at Access Partnership, indicated that micro, small, and medium-sized enterprises are leveraging e-commerce to expand their exports globally. In 2023, Vietnam’s business-to-consumer e-commerce export value reached approximately $3.5 billion. This figure is expected to increase 1.7 times by 2028, reaching around $5.8 billion.

According to a report published by Amazon Global Selling Vietnam in November 2024, over 17 million products from Vietnamese enterprises were exported via this platform in 2024, with export value growing by 50 per cent and the number of sellers increasing by 40 per cent. The cross-border e-commerce growth rate hit 28.5 per cent compared to the previous year, demonstrating the vast potential of this market and Vietnamese businesses’ ability to harness digital platforms.

In parallel, a report by DEDE presented at a conference held the same month indicated that 60 per cent of participating businesses stated that e-commerce exports accounted for 10-30 per cent of their total revenue. The key markets targeted by Vietnamese enterprises through this channel include South Korea, Japan, and China.

The rapid expansion of e-commerce is creating unprecedented opportunities for Vietnamese businesses, including coffee producers.

According to the latest data from the Ministry of Agriculture and Rural Development, despite a 40 per cent decline in export volume in January, Vietnam’s coffee sector saw a 9 per cent rise in export revenue, reaching $763 million, thanks to soaring global prices. Processed coffee accounted for just over 17,000 tonnes, generating $104.55 million – 11 per cent of total volume and 13.1 per cent of total coffee export revenue.

For 2024, Vietnam exported 1.32 million tonnes of coffee, generating $5.48 billion, marking an 18.8 per cent drop in volume but a 29.1 per cent surge in value compared to 2023. The milestone underscores Vietnam’s growing value-added approach, shifting away from raw exports towards premium, higher-margin products.

Capitalising on these opportunities, Vietnamese businesses are increasingly integrating into global markets through cross-border e-commerce platforms such as Amazon or Alibaba.

Nguyen Nguyen, deputy CEO of Trung Nguyen Legend, told VIR that e-commerce has allowed the company to showcase Vietnamese coffee culture on a global scale. Since launching its official store on Amazon in 2020, Trung Nguyen has marketed four flagship products: Gourmet Roasted Coffee, Premium Roasted Coffee, G7 Instant Coffee, and Creative Roasted Coffee priced between $8 and $25. The company has also established a presence on Alibaba, further broadening its international reach.

“For a brand like Trung Nguyen Legend, cross-border e-commerce is not merely a sales channel - it is an essential vehicle for brand storytelling and cultural dissemination. With a presence in nearly 100 international markets, e-commerce has been instrumental in conveying our creative philosophy and core values to an international audience,” said Nguyen.

VIR