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|E-commerce giants see accelerated cross-border e-commerce activities from Vietnam|
At the end of 2020, thousands of Vietnamese sellers were exporting products through Amazon online stores and the number of businesses reaching more than $1 million in sales tripled compared to 2019. Vietnamese sellers have also received a good deal of positive feedback from global customers, proving most popular in the categories of home, apparel, kitchen, tools, home improvement, and handicrafts, according to Amazon Global Selling Vietnam.
Indeed, the pandemic has accelerated customer behaviour of shopping online and the world is shifting to digital quickly. Many companies also feel the urgency to shift towards digital services and channels to mitigate the impact of the pandemic and enhance business resilience.
In this context, cross-border e-commerce represents a global opportunity which helps optimise processes and supports sellers reach global customers directly. Thus, Vietnamese sellers are looking for more opportunities through cross-border e-commerce to build a global business.
Commenting on this trend, Gijae Song, head of Amazon Global Selling Vietnam said, “With the fast-growing development of technology and competitive advantages that Vietnamese enterprises already own, we believe Vietnam’s cross-border e-commerce will continue to grow in the future, which will set a foundation for Vietnamese sellers to go beyond national borders and promote high-quality 'Made-in-Vietnam' products recognised by global customers.”
He added that Amazon hopes to become the most trusted cross-border e-commerce brand in Vietnam by supporting sellers to develop global businesses through Amazon online stores.
By selling on Amazon online stores, businesses of different types and sizes can directly reach more than 300 million worldwide active customer accounts – including more than 200 million Prime customers and more than five million business customers.
“Amazon Global Selling hopes to further contribute to the development of Vietnam's cross-border e-commerce and motivate more businesses to go global,” he said. “To fully understand their potential and the challenges sellers are facing, we also hope to work with local organisations with deep experience supporting small- and medium-sized enterprises (SMEs).”
This year, Amazon has taken a proactive approach by expanding cooperation with local organisations, especially Vietnam e-Commerce and Digital Economy Agency (iDEA). Through the joint efforts, Amazon provides support to sellers in Vietnam and equips them with the knowledge needed to succeed in cross-border e-commerce and the opportunities of digital transformation.
Last year, online transactions, online payment buyers, and the gross merchandise value actually increased by three digits on Alibaba.com. Roger Lou, country manager of AlibabaVietnam shared with VIR that, “Last year was indeed an unusual year, the COVID-19 actually has changed the world in many aspects, including unlocking the power of e-commerce and online trade.”
“During this period, e-commerce has also seen a lot of changes in the global landscape, for example, the Regional Comprehensive Economic Partnership (RCEP). 15 different nations joined RCEP to embrace more open markets and reduced tariffs between different countries and nations. We strongly believe that after the pandemic, we will see another strong growth spurt,” he noted.
Alibaba.com aims to provide a one-stop digital solution for Vietnamese suppliers and SMEs, including onboarding, digital marketing, and online trade assurance services, among others. The e-commerce giant will consistently develop and deepen its partnerships with local banks, associations, business partners, and local logistics services providers, which are essential for success in digital trade in Vietnam.
According to Lou, its dedicated local service team is providing Alibaba.com's customised services together with both online and offline seller training sessions to boost suppliers’ business. In 2021, Alibaba.com will double the investment to raise service quality in Vietnam.
Meanwhile, a Payoneer whitepaper says that in the first quarter of 2020, the well-established Vietnamese dropshipping industry suffered from a decrease in demand brought by the COVID-19 pandemic. However, as the year progressed, sales volumes spiked. In the second quarter of 2020, the industry saw a 90 per cent increase over the second quarter of 2019 while the third quarter saw 45 per cent growth on-year.
According to Lai Viet Anh, deputy director of iDEA, Vietnam's e-commerce market experienced fast-paced development with 18 per cent growth to reach $11.8 billion last year. Given that the global business-to-consumer (B2C) e-commerce is expected to generate $2.88 trillion in 2025, cross-border e-commerce remains an effective channel for Vietnamese companies to expand markets.
Despite the opportunities, Vietnamese online sellers also face challenges in the global e-commerce market, one being the long shipping time from Vietnam. Indeed, numerous online sellers have suffered delays in shipment due to the disruptions caused by the COVID-19 pandemic in the world.
In light of the boom in cross-border e-commerce, more companies set up e-commerce businesses and make online transactions. Facing large payment volumes, providing seamless digital payment experiences can be another daunting task, especially for consumers on overseas e-commerce sites. while screening for other risks like fraud, cancelled orders, and disputes, among others.