Cross-border e-commerce a key export opportunity

Amazon Global Selling and the Vietnam E-commerce and Digital Economy Agency (iDEA) at the Ministry of Industry and Trade kicked off their Cross-Border E-Commerce (CBEC) Conference in Vietnam on June 7, in response to growing demand among Vietnamese businesses and to empower them to capture the rising CBEC opportunity.

With the theme “Embrace Asian Experience, Vietnamese Brands Go Global”, the event brought together key stakeholders to drive progress in the e-commerce exporting landscape. The prestigious event welcomed 14 service providers in many service domains crucial for successful online exporting, including Account Management, Logistics, Trademark Registration, Payment, Advertising, Product Selection, and Training, from South Korea, Singapore, and Vietnam.

According to the latest research from Access Partnership, Vietnam could see its e-commerce export revenues rise to VND296.3 trillion ($13.1 billion) by 2027 if local businesses are fully enabled and accelerate the rate at which they adopt e-commerce to export their products and services.

The research’s survey conducted on around 300 domestic micro, small, and medium-sized enterprises (MSMEs) in Vietnam found that 86 per cent believe that without e-commerce, they would be unable to export at all as they lack capacity. Local MSMEs are also looking towards expanding their footprint in more markets such as the US, Japan, and European countries over the next five years.

Seeing the potential in the industry, Amazon Global Selling therefore joined hands with iDEA to organize the CBEC Conference 2023 in Vietnam, with the expectation of raising awareness about CBEC among local enterprises, bringing online export experience from other countries in the region and from industry experts and service providers to empower, encourage, and support businesses to accelerate their international growth while introducing more Vietnamese products and brands to customers around the world through CBEC.

Speaking at the opening of the conference, Ms. Lai Viet Anh, Deputy Director of the Vietnam E-commerce and Digital Economy Agency, said cross-border e-commerce is a booming trend in many countries around the world.

Retail e-commerce growth in Vietnam is 20 per cent a year. It is a relatively new industry that is recognized as having great potential and is in line with the government’s policy of developing the digital economy.

“Seizing the opportunity, iDEA has been diversifying programs to promote digital transformation, perfecting online export policies, understanding the barriers faced by MSMEs, and providing solutions,” Ms. Anh added. “In addition to learning to capture information from businesses, iDEA also provides educational resources and training programs to help Vietnamese businesses expand internationally and achieve success on a global scale.”

Mr. Gijae Seong, Head of Amazon Global Selling Vietnam, said the export value of Vietnamese businesses selling with Amazon increased by 45 per cent in 2022 and many Vietnamese businesses are ready to export online but are unsure of how to start or scale.

“We understand the challenges they face, and that is why we are making continuous efforts to work with government agencies and service providers to organize this event to motivate, support, and empower them,” he added. “Amazon Global Selling is committed to enhancing the growth of businesses in Vietnam and equipping them to embrace changes and reach new heights in this new global environment.”

According to the Access Partnership report, despite multiple efforts, Vietnam’s MSMEs still face barriers to exporting via e-commerce that are left unaddressed. These barriers encompass various aspects, such as knowledge, capability, regulations, and costs. Acknowledging the significance of addressing these areas of support, Amazon Global Selling Vietnam has proactively sought to establish connections between local businesses and service providers, thereby offering comprehensive solutions to these challenges.

“We understand that logistics plays an important role in the success of e-commerce exports,” said Nguyen Anh Minh, Founder of logistics service provider DPExpress. “In joining this industry event with Amazon Global Selling Vietnam, we have the chance to network with thousands of Vietnamese businesses and provide them with the necessary information and support to start, expand, and grow in the global market.”

“We hope that our story can inspire not only sellers on Amazon but also other MSMEs in Vietnam planning to step into CBEC,” said Mr. Crystal Ren, Founder of Phera & Abound Lifestyle. “Having begun as a startup, we comprehend the challenges of entering this business model as well as the journey of catering to market needs. Amazon is a reliable partner, as we are fully supported in every step of the process, increasing our ability to reach customers around the world.”

“Our journey from a traditional manufacturer to a thriving international business was made possible through the global reach of Amazon,” said Mr. Nguyen Le Thang Long, Deputy CEO of An Phat Holdings.

He added that with access to valuable resources, innovative tools, and a supportive Global Selling team locally, An Phat Holdings was able to effectively showcase eco-friendly products, branded AnEco, connect with customers worldwide, and grow exponentially. “We hope that our story proves the endless opportunities available to Vietnamese sellers on Amazon, encouraging them to embrace the trend and strive for their own remarkable achievements,” he said.