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This is a phenomenon that no one would have imagined a while ago and yet, for B2C borderless sales (client company in English or business to customer in French), B2B (from company to company or business-to-business), it has been a long time since it was necessary to have physical stores abroad. An international online sales site is enough to establish yourself in foreign markets and serve customers there at lightning speed.
Customers tend to buy more and more products from abroad
borders of your country. Photo: VNA/CVN
You reach people who are just a click away from your products, and indeed, the opportunities for growth are immense in cross-border e-commerce. It is consciously that merchants offering niche products are betting on cross-border e-commerce. In the domestic market, the potential is exhausted more quickly and new markets must be conquered. It even happens that a product is more successful abroad than in the domestic market. With the internet, distance is no longer a constraint. Today, a very small company can compete with a large one.
The competition is now global. Winning new customers around the world just got easier. With just one click, consumers can place an order directly with a producer. However, to develop cross-border online commerce, the dematerialization of administrative procedures and the digital transformation of companies are not enough.
Increase in exports via Amazon and Alibaba
In accordance with the e-commerce development plan for the period 2021-2025 and the national digital transition program until 2025, the Ministry of Industry and Commerce created the ECVN platform. Its aim is to promote cross-border e-commerce, connecting Vietnamese exporters and foreign importers. These devices were approved in May 2021 by Prime Minister Pham Minh Chinh with a view to making e-commerce an emblematic sector of the national economy. All that glitters is not gold in cross-border e-commerce. Euphoria may be at its height, but this type of business is complex and often underestimated. Because, unlike domestic e-commerce, it faces very real borders and therefore imports provisions, laws and risks that vary by destination country.
Recently, the Ministry of Industry and Commerce has launched many measures to promote exports through e-commerce. Through the e-commerce platform Amazon (US), Vietnamese companies can access customers in large and demanding markets such as North America, Japan or the European Union… Companies that want to increase their sales on Amazon need to understand. This is an urgent requirement.
After more than a year of presence on Amazon, the export turnover of Vietnamese companies reached only one million dollars, a relatively modest figure, especially in the context where Vietnam has a wide range of agricultural, food and furniture products. .. GijaeSeong, national manager of Amazon Global Selling Vietnam, there are more and more products “Made in Vietnam” on Amazon such as home appliances, fashion accessories, kitchenware and home accessories… which are highly praised by customers thanks to their good quality and competitive prices. Additionally, medical masks, gloves, and protective clothing are also three important product groups that Amazon works with manufacturers on.
Great opportunities and potential
The Amazon seller community in Vietnam has over 100,000 members. This platform assessed that Vietnamese sellers have been very successful and have consistently increased sales of items such as women’s and children’s clothing, home and office decor products, wooden bag, 3D card and confetti. “Vietnam is a country with vast opportunities and potential. That’s why Amazon has invested heavily in it and has grown steadily in recent years. This country has strengths in the manufacturing industries and a large number of suppliers with professional business plans“commented Eric Broussard, manager of Amazon Global Selling.
|Cross-border e-commerce promotes the expansion of export markets for Vietnamese companies. Photo: VNA/CVN|
There are more and more Vietnamese companies securing 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 Commerce has been cooperating with major e-commerce groups. So far, more than 1,000 companies have signed up for training, more than 300 have participated in export consulting activities and improved e-commerce capabilities.
the general manager ofalibaba. withZhang Kuo, hoped that through cooperation with partners in Vietnam and around the world, by 2024, Alibaba could reach a total transaction value of more than 100 billion USD, support more than 10 million SMEs around the world. and more than 10,000 suppliers from Vietnam operating commercially on its platform.
Global market trends
alibaba. with comments on global market trends and forecasts potential export products for Vietnamese small and medium enterprises in the report “Vietnam 2022 B2B Digital Transformation Overview“. The report identifies areas that have seen strong growth during and after the COVID-19 pandemic. These are the energy, metals and mining, office equipment and pharmaceutical sectors. Through research, this platform highlighted two potential sectors where Vietnamese small and medium-sized businesses should seize opportunities. The first is agriculture with three groups of products: cooking oil, nuts and seeds, seeds and tubers. The second is beauty and personal care.
alibaba. with also lists the three best-selling product groups: hair extensions and wigs, skin care and makeup products and tools. Third place went to Casa e Jardim.
According to this platform, the top selling products in this category are kitchen and dining utensils, pet products and garden tools.