Expanding online exports for Vietnamese enterprises

Several cross-border e-commerce platforms, including Alibaba, Amazon, Tiki, Shopee, Lazada, and others, have worked with regulatory agencies to create a Made in Vietnam space in order to promote and introduce respectable Vietnamese brands and products to international customers and partners, thereby expanding the export channels for Vietnamese goods and products.

The global digital economy and e-commerce have grown rapidly in 2023 and beyond because to the fast advancement of technology and consumer behavior. According to Access Partnership, cross-border e-commerce exports from Vietnam generated 3.5 billion USD in revenue in 2022, or around 1% of the country's overall export revenue. By 2027, this amount is predicted to have grown to 5.5 billion USD at a growth rate of almost 9% annually.

Data from international e-commerce platforms indicates that Vietnamese businesses have increased their exports over time. Vietnamese businesses are paying greater attention to, and investing more in, the design and quality of their products in addition to closely adhering to buyer laws.

The average daily number of purchasers of Vietnamese items at Alibaba.com has considerably grown. The number of consumers enquiring about "Made in Vietnam" items climbed by 47% at the end of Q3 2023. On the marketplace, over half of Vietnam's exporters receive good star ratings.

In a similar vein, between August 2022 and September 2023, there were more than 40% more Vietnamese selling partners on Amazon. When compared to the same period last year, the export value of Vietnamese selling partners jumped by more than 50%, and the number of Vietnamese selling partners with Amazon earnings over $100,000 USD increased by 70%.

Ms. Nguyen Thi Phuong Uyen, Marketing Director of Alibaba.com Vietnam LLC, made the following comments about Vietnamese goods and products on Alibaba.com: "Made in Vietnam" goods are reasonably priced, constantly improving in quality, and on par with goods from nations that have been selling on the platform for more than 20 years. Businesses that access and learn about emerging trends in product design are better able to compete.

Vietnamese commodities and products have a distinct edge over those of other nations due to their participation in 16 free trade agreements (FTAs) with several nations and areas. These agreements include low or no import and export duties. In order to boost market share and export value, businesses must thus continue to take use of this advantage.

Apart from the aforementioned benefits, Vietnamese export businesses have several constraints that hinder their ability to take advantage of chances. Enterprises face strict barriers from export markets, export regulations, and quality standards of each market, according to Mr. Nguyen Thanh Duong, Deputy Director of the Center for Information Technology Application and Digital Transformation in Trade Promotion, Ministry of Industry and Trade. Small businesses also lack knowledge about consumer preferences and psychology in target markets.

Cost barriers for imports and exports are another issue. Marketing, warehousing, and freight charges are additional expenses in addition to manufacturing and transportation costs. Large, seasoned businesses may minimize these expenses, but many tiny, startup businesses in the industry require consulting to save costs. Lastly, firms facing logistics-related obstacles must possess a solid understanding of cross-border e-commerce logistics operations, efficient methods for preserving products, and aggressive pricing tactics.

Language limit ations continue to be a problem for Vietnamese businesses, according to a representative of Alibaba.com Vietnam LLC, the platform provider, particularly when negotiating with clients outside the platform. Second, there are restrictions on how you can use the platform's marketing capabilities, so you can't take full use of the digital resources it offers to expand your consumer base. Thirdly, transactions are impacted by limit ations connected to logistics, wherein certain items fail to satisfy delivery time and schedule.

Experts assert that, given the fact that consumer demands and preferences vary by market and year, Vietnamese businesses must comprehend their target markets and clientele, arm themselves with support resources and expertise in digital platform marketing, and engage in proactive customer outreach.