Brian Jeffrey
Shifting Perspectives on Vietnamese Goods
In the past, many believed Vietnamese products were less competitive than Chinese goods in terms of pricing.
However, at a recent seminar titled “Cross-Border E-Commerce – Era of Breakthrough” in Hanoi, Wu Quanxin from a Chinese cross-border e-commerce platform shared unexpected insights. He noted that Vietnamese goods, showcased in Ningbo, were of high quality and competitively priced, unlike many Chinese offerings.
Innovating for Success
Wu Quanxin emphasized the importance of continuous innovation for Vietnamese businesses in the e-commerce space. He highlighted the necessity for ongoing investment in research and development (R&D) and enhancing brand visibility on the global stage.
Currently, Vietnamese products are underrepresented in China, with the market being dominated by items from Thailand, Indonesia, and Malaysia.
Bernard Wong from ACBC Global pointed out that although Vietnam produces outstanding goods, particularly tropical fruits, it struggles with global branding strategies, making it harder to export effectively.
Without strong branding, accessing international markets via e-commerce platforms becomes a significant challenge for Vietnamese enterprises.
Le Hoang Oanh, from the Ministry of Industry and Trade, echoed this sentiment, noting that many companies enter foreign markets through established foreign brands instead of promoting their own.
Strengthening brand recognition abroad is essential for Vietnamese businesses aiming to participate successfully in cross-border e-commerce.
Adapting to E-Commerce Trends
Despite challenges, Vietnamese companies have swiftly embraced cross-border e-commerce. Loki Tran, CEO of GIP Fulfillment, reported that many small and medium enterprises (SMEs) have successfully launched products into Southeast Asian markets.
Tran remarked on the impressive multitasking abilities of Vietnamese e-commerce professionals, contrasting them with their counterparts from the Philippines, who often focus on singular skills.
A recent survey by the Ministry of Industry and Trade indicated that 53% of companies export agricultural products via e-commerce, while 47% have developed their own digital platforms. Approximately 60% reported that cross-border e-commerce represented 10-30% of their total trade value.
Many firms see e-commerce as a key driver for enhancing their international trade efforts. Metric conducted an analysis of e-commerce platforms such as Shopee and Lazada, revealing that Vietnam’s cross-border e-commerce sales hit VND227 trillion in the first nine months of 2024, reflecting a robust 37.66% growth and a 50% increase in the number of products sold.
Thu Vu from Metric remarked on the impressive nature of these figures and anticipated even higher results during the year-end sales period.
Emerging Markets for Vietnamese Products
Anna Nguyen, Vice President of ACBC Global, identified Southeast Asia, India, and the Middle East as emerging hubs for cross-border e-commerce driven by a growing digital middle class.
Both South Korea and China are viewed as promising markets for Vietnamese exports. South Korean consumers are increasingly turning to cross-border e-commerce due to diverse demands and robust online infrastructure. Meanwhile, Chinese shoppers show a growing preference for imported goods, particularly cosmetics, healthcare products, and regional specialties.
Many small businesses aim to enhance their cross-border e-commerce by establishing their own platforms; however, experts recommend that collaborating with established e-commerce platforms may be more advantageous than investing heavily in proprietary infrastructure.
