“Cross-border E-commerce: The Breakthrough Era” is an initiative launched by Amazon and acknowledged by the MoIT. (Photo: VietnamPlus)Hanoi (VNA) – The Vietnam E-commerce and Digital Economy Agency (iDEA), under the Ministry of Industry and Trade (MoIT), and Amazon Global Selling signed a Memorandum of Understanding (MoU) on July 7 to collaborate in supporting the manpower development for enterprises to unlock opportunities with e-commerce exports.
The “Cross-border E-commerce: The Breakthrough Era” initiative, launched by Amazon and acknowledged by the MoIT, is a five-year programme with online and offline training camps across Vietnam. It aims to support cross-border e-commerce talents for 10,000 businesses in the next five years, from 2022 to 2026.
Driven by the impacts of new-generation free trade agreements and the shift in business models from traditional to digital platforms, the e-commerce market provides an opportunity for Vietnamese companies to penetrate and expand more foreign markets, on the back of Vietnam's deep integration into the world economy, said Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan in his remarks.
In 2021, e-commerce sales increased 16% to reach 13.7 billion USD, of which B2C (business-to-customers) accounted for 6.5% of total retail sales and service revenue. Vietnam’s e-commerce is forecast to grow by an average of 25% per year during 2022–2025, reaching 35 billion USD by 2025 and occupying 10% of total retail sales and service revenue.
Tan said the ministry has applied information technology to reform administrative procedures in the export sector, alleviating costs for export businesses and boosting Vietnam’s imports and exports.
However, he did point out there are some limitations in Vietnamese e-commerce businesses, such as a lack of market information, knowledge of regulations and consumer tastes in foreign markets, and weak marketing campaigns and manpower resources.
“We believe with the efforts of many sides, the programme will be a premise for us to develop more programmes to support businesses in digital transformation and bring Vietnamese goods brands out to the world through cross-border e-commerce,” Tan said.
Gijae Seong, head of Amazon Global Selling Vietnam, added: “With MoU, iDEA and Amazon Global Selling Vietnam share the same vision and strategy of supporting local SMEs exports through e-commerce. Some 10,000 Vietnamese businesses are expected to join our initiative, in which small and medium enterprises can arm themselves with knowledge, information, resources and connections to sustainably expand their business globally.”
Seong revealed about 7.2 million made-in-Vietnam products were sold globally through Amazon in 2021, a rise of 48% in value compared to the previous year. Some local brands become more popular with buyers overseas, such as Minh Long porcelain, Royal helmets, Truong Thọ seaweed, and 3D Vietnamese handmade cards.
In 2022, it is planned that this programme will roll out in Hanoi, HCM City, Da Nang, and other cities across Vietnam.
At the event, Amazon also released its “Local Sellers, Global Consumers: Capturing Vietnam’s e-commerce export opportunity” report, which surveyed more than 300 micro-, small- and medium-sized enterprises (MSMEs) from Vietnam.
According to the report, the annual value of B2C e-commerce exports in Vietnam is expected to grow by over 20% to reach 256.1 trillion VND (11.1 billion USD) in 2026, from 75.4 trillion VND in 2021.
About 88% of surveyed firms feel e-commerce is critical to their export ability. Vietnamese MSMEs also anticipate a greater sales growth forecast overseas (42%) than at home (11%).
However, amid opportunities for global expansion, the report also revealed key challenges for enterprises to overcome, including barriers in costs, regulations, information and capabilities.
More than 80% of surveyed firms admit they lack information on relevant regulations overseas, while 85% believe they lack the ability to compete with other sellers around the world.
The report is expected to give an insight for authorities, policymakers and industry players to come up with comprehensive recommendations and solutions for supporting e-commerce exporters./.
