Value of cross-border business in e-commerce hits new highs

Alex Nguyen, 30, currently owns a store selling audio equipment and accessories in Hanoi. For many years, Alex has often imported goods from suppliers on Chinese e-commerce platforms such as Alibaba, Taobao, or Banggoo, although the average delivery time usually lasts 2-4 weeks.

Value of cross-border business in e-commerce hits new highs, illustration photo/ Source: freepik.com

“Those who often buy products from Taobao or Alibaba know that the prices of items there will be much cheaper than on Vietnamese e-commerce platforms, while the quality is equivalent,” Nguyen said.

However, China is currently promoting the construction of giant warehouses in Guangzhou, Dongxing, Pingxiang, Kunming, and Hekou, all of which are located close to the Vietnamese border.

Delivery times on Chinese e-commerce platforms will therefore continue to be shortened, Nguyen said, especially after the country has achieved its 24-hour delivery target nationwide and is aiming to reduce it to 12 hours.

“If shipping time is only one or two days and free shipping is available through many different linking methods, there will definitely be more Vietnamese customers choosing to buy products on these platforms,” Nguyen added.

According to China’s Ministry of Commerce, the nation’s cross-border e-commerce value has increased tenfold since 2018 through the expansion of bonded warehouses around the world and the development of supply chain logistics networks owned by e-commerce platforms.

Meanwhile, Amazon is trying to increase its influence in the Vietnamese market through e-commerce export programme Amazon Global Selling. Last year alone, it supported Vietnamese businesses selling 17 million products with on-year export value growth of over 50 per cent.

An Amazon report on empowerment of Vietnamese small- and medium-sized enterprises published in February said that Vietnamese selling partners recorded a 70 per cent growth in the number of items sold on Amazon. The most exported and sold categories from Vietnamese selling partners in Amazon store were home, kitchen, health and personal care, apparel, and beauty.

“With just one click of the mouse to place an order from a Vietnamese business the night before, even in the US, customers can enjoy peace of mind because the product will be delivered to their door the next morning,” said Eric Broussard, Amazon’s vice president of Worldwide Global Selling and International Seller Services, late last year in Hanoi.

According to the Ministry of Industry and Trade, in 2023, the scale of Vietnam’s retail e-commerce market is estimated to have hit $20.5 billion, up 25 per cent on-year.

Vietnam’s e-commerce growth rate is ranked among the top 10 countries in the world as of December, according to German online platform.

Mike Zhang, head of Vietnam Business Alibaba.com In 2024, Vietnam’s e-commerce market is demonstrating significant growth and potential. The sector is increasingly characterised by the use of mobile commerce, with a substantial portion of transactions conducted through apps. Its young, tech-savvy population, supportive government policies, and increasing investments bode well for the future. The business-to-business segment of Vietnam’s e-commerce market in 2024 is an integral part of the overall e-commerce landscape. It includes transactions and services that facilitate online trade between businesses. This segment encompasses a diverse range of industries, offering products and services that cater to various business needs. The market size and growth for this type of e-commerce in Vietnam are significant, indicating an increasing trend of businesses engaging in online transactions and leveraging digital platforms for their operations and growth. Our mission is to support small- and medium-sized enterprises (SMEs) in Vietnam in accessing export opportunities and engaging in global trade. To better assist local SMEs, we continuously develop and introduce innovative solutions that streamline their business operations. Furthermore, we provide an abundance of training and market insights, in addition to personalised one-on-one coaching and consulting services. Alibaba.com, the Ministry of Industry and Trade, and the Vietnam Trade Promotion Agency commenced the registration period for Alibaba.com’s Vietnam Pavilion in November 2023. This marks the initiation of the selection of 100 outstanding businesses to participate in the online pavilion. The objective is to spotlight the diverse range of Vietnamese-made goods, feature reputable brands, facilitate international trade, and foster a more profound understanding of Vietnamese products and SMEs among global buyers.

Competition rising for e-commerce postal services Vietnam’s postal market has grown strongly in recent years, from $1.2 billion in 2019 to nearly $2.5 billion in 2023. Of the sum, estimated revenue from package services and e-commerce services reached more than $1.6 billion, or 64 per cent of the total.

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