Paving the way for Vietnamese goods to reach the global market
VGP – Electronic commerce (e-commerce) has become an effective method to help businesses overcome difficulties and barriers posed by the COVID-19 pandemic, and is also expected to be the “key” opening the way for Vietnamese goods to further penetrate into the global market.
Cross-border sales
Viet Nam’s e-commerce has been increasingly expanded with a variety of models.
With the advantages from a young population and a large number of people conducting online transactions through smartphones, the e-commerce market in Viet Nam is currently growing quite rapidly with over 35 million users, generating revenue of more than US$11.8 billion in 2020, accounting for 5.5% of the country’s total retail sales of goods and consumer service revenue (only 4.9 % in 2019).
The reports on e-commerce in Southeast Asian countries by Google, Temasek and Brain&Company (the world's leading technology corporations) predict that Viet Nam’s e-commerce industry will grow by 29% on average in the period of 2015-2025. By 2025, the scale of Viet Nam’s e-commerce is expected to reach US$43 billion, ranking third in ASEAN.
In the context of the pandemic, the e-commerce market has become more and more vibrant, and the application of digital technology and the building of new distribution channels in the online environment are becoming a solution that helps Vietnamese enterprises sail through difficulties and brings new opportunities from the market’s demand on the basis of changing consumers’ shopping habits – from in-person shopping to online shopping.
Head of Amazon Global Selling in Viet Nam Gijae Seong hailed Viet Nam as one of the most dynamic emerging economies in the world that has shown a strong position in the midst of COVID-19.
He stated that Amazon wishes to contribute more to developing cross-border e-commerce in Viet Nam and driving Vietnamese companies to reach out to the global market.
This year, Amazon has been actively materializing that wish through expanding cooperation with organizations in Viet Nam in training domestic small and medium-sized enterprises on cross-border e-commerce skills, promoting future changes of Viet Nam's export industry, as well as enhancing the development of digital economy.
Strengthening management
The explosive growth of e-commerce in recent years has contributed to making Viet Nam one of the most potential markets in the ASEAN region.
According to the master plan for national e-commerce development in the period of 2021-2025, approved in the Prime Minister’s Decision No. 645/QD-TTg dated May 15, 2020, the Government has set some general goals until 2025, including supporting and promoting the wide application of e-commerce in businesses and the community, narrowing the gap between big cities and localities in terms of e-commerce development, building a healthy, competitive and sustainable e-commerce market, expanding the consumption market for Vietnamese goods at home and abroad through e-commerce applications, accelerating cross-border transactions and e-commerce, and becoming a country in the top three of Southeast Asia regarding e-commerce development.
Cross-border e-commerce has also become an effective way for Vietnamese enterprises to open their way into the global supply chain.
On the basis of the set goals in the master plan, the building of a safe and healthy e-commerce market is completely possible with the synchronous involvement of the Government, central ministries, localities and businesses that have been and will be participating in the online market.
