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This is a phenomenon that no one has imagined before and yet, for sales without B2C boundaries (business-to-customer in English or customer business in French), B2B (business-to-business or business-to-business), it has long been necessary to have physical stores abroad. An international online sales site is enough to establish itself in foreign markets and serve customers there at lightning speed.
Customers tend to buy more and more products from outside
border of their country. Photo: VNA/CVN
You reach people just a click away from your products, and in fact the opportunities for growth are enormous in cross-border e-commerce. It is well known that merchants who offer suitable products value cross-border e-commerce. In the domestic market, potential is exhausted faster and new markets must be covered. It even often happens that a product is more successful abroad than in the domestic market. With the internet, distance is no longer a barrier. Today, a very small company can compete with a large one.
The competition is now global. Covering new customers around the world is just getting easier. With just one click, buyers can order directly from a producer. However, to develop cross-border online commerce, the dematerialization of administrative procedures and the digital transformation of companies is not enough.
Exports increased through Amazon and Alibaba
In accordance with the e-commerce development plan for the period 2021-2025 and the national digital transition program in 2025, the Ministry of Industry and Commerce created the ECVN platform. Its goal is to promote cross-border e-commerce by connecting Vietnamese exporters and foreign importers. These devices were approved in May 2021 by Prime Minister Pham Minh Chinh with the aim of making e-commerce the flagship sector of the national economy. All that shines is not gold in cross-border e-commerce. Euphoria may be at its peak, but this type of business is complicated and often underestimated. Because, unlike domestic e-commerce, it faces real borders and, therefore, import provisions, laws and risks that vary depending on the destination country.
Recently, the Ministry of Industry and Trade has launched several measures to promote exports through e-commerce. Through Amazon’s (USA) e-commerce platform, Vietnamese companies can access customers in large and demanding markets, such as North America, Japan or the European Union … Companies must understand this wants to increase their sales on Amazon. This is an urgent need.
After more than a year of presence in Amazon, the export turnover of Vietnamese companies has reached only one million USD, a relatively small number, especially in the context where Vietnam has a wide range of products. agriculture, food and furniture … According to GijaeSeong, country manager of Amazon Global Selling Vietnam, more and more products “made in Vietnam” on Amazon such as home appliances, fashion accessories, kitchen appliances and home accessories … which are highly praised by customers, thanks to their good quality and competitive price. In addition, medical masks, gloves, and protective clothing are three important product groups in which Amazon works with manufacturers.
Vast opportunities and potential
The Amazon seller community in Vietnam reaches over 100,000 members. This platform estimates that Vietnamese sellers are relatively successful and sales of items such as women’s and children’s clothing, home and office decoration products, wooden handbags, 3D cards and confetti continue to rise. “Vietnam is a country with vast opportunities and potential. This is why Amazon has invested heavily in it and has continued to grow in recent years. This country has strengths in the manufacturing industries and a large number of suppliers with professional business plans ”commented Eric Broussard, a manager of Amazon Global Selling.
|Cross-border e-commerce promotes the expansion of export markets for Vietnamese companies. Photo: VNA/CVN|
More and more Vietnamese companies are taking new export orders with the support of Amazon and Alibaba (China). To effectively operate the online export channel, since 2019, the Ministry of Industry and Trade has been collaborating with major e-commerce groups. So far, more than 1,000 businesses have registered for training, more than 300 have participated in export consulting activities and enhanced e-commerce capabilities.
The general manager ofalibaba.comZhang Kuo, hopes that by working with partners in Vietnam and around the world, by 2024, Alibaba will reach a total transaction value of more than 100 billion USD, support more than 10 million SMEs from around the world and more than 10,000 suppliers from Vietnam running commercially on its platform.
Global Market Trends
alibaba.com commented on global market trends and predicted potential export products for Vietnam’s small and medium enterprises in the report “Overview of Vietnam B2B Digital Transformation 2022“. The report identifies areas that saw strong growth during and after the COVID-19 pandemic. These are the energy, metals and mining, office equipment and pharmaceutical sectors. Through the survey, this platform highlighted two potential sectors where Vietnam’s small and medium enterprises should take advantage of the opportunities. The first is agriculture with three product groups: lard, nuts and seeds, seeds and tubers. The second is beauty and personal care.
alibaba.com also listed are three best -selling product groups: hair extensions and wigs, skin care products and tools, cosmetics. The third spot went to Home and Garden.
According to this platform, the best -selling products in this category are dining and kitchen utensils, pet products and garden utensils.