Brian Jeffrey
Workshop Highlights E-commerce Opportunities for Vietnam’s MSMEs
Megan Lim from Access Partnership shared valuable insights during a workshop focused on online exporting, organized by the Vietnam E-commerce Association (Vecom) on December 16. The information was derived from a survey conducted in July 2024 about Vietnam’s Micro, Small, and Medium Enterprises (MSMEs).
According to the survey, 93% of enterprises indicated that they rely on e-commerce to export products. Furthermore, 65% of those surveyed revealed that half of their revenue in Business-to-Consumer (B2C) e-commerce came from international markets. Many expressed optimism, with 50% anticipating a growth rate of 20% in their B2C e-commerce turnover over the next five years.
When it comes to target markets for e-commerce exports, China, the United States, and Japan are the primary focuses for these MSMEs.
Despite these ambitions, significant challenges lie ahead. A staggering 95% of participants cited a shortage of skilled workers specialized in cross-border e-commerce. They also highlighted a lack of understanding regarding foreign import regulations, with 94% noting that high logistics costs pose a major barrier and 93% lacking vital information about foreign markets.
However, 92% of enterprises believe that formal education on e-commerce and targeted training could enhance their capabilities for successful product exports via online platforms.
A significant 94% of respondents recommended developing an ecosystem that includes third-party providers for legal and logistics services to help reduce legal hurdles and logistics expenses associated with cross-border e-commerce.
The importance of government-backed initiatives in partnership with the private sector was also emphasized, as 95% agreed that such programs could help bridge knowledge gaps related to exporting through B2C e-commerce.
Lim pointed out several international examples of successful e-commerce initiatives that can serve as guidance for Vietnam. For instance, Amazon Global Selling in Singapore collaborates with NYP-SYRP to assist 800 businesses and MSMEs in expanding their global e-commerce operations, offering training in product research and marketing.
In Jiangsu, China, an action plan has been launched by the provincial government aimed at promoting high-quality cross-border e-commerce from 2023 to 2025, targeting the growth of over 600 e-commerce companies and establishing more than 100 export-oriented e-commerce brands.
Moreover, South Korea has allocated 16.9 billion won ($310 million) to assist MSMEs with logistics. Their government provides substantial funding for logistics through discounts and partnerships with major courier services like FedEx, DHL, and UPS.
Darren Ong from Amazon Southeast Asia highlighted India’s approach. The country’s laws on foreign trade are focused on facilitating online exports, targeting $200 billion in online export value by 2030.
Many believe recent reports regarding cross-border e-commerce are inaccurate. While Vietnam has potential to thrive in this sector, there is a lack of comprehensive documents assessing the opportunities and barriers in B2C export via e-commerce.
Vu Minh Tam from the Import-Export Department announced that annual reports on Vietnam’s trade have been published since 2016. Given that e-commerce exports are a relatively new topic, they will incorporate information related to this in future reports.
Additionally, Ngo Chung Khanh, Deputy Director of Multilateral Trade Policy, noted Vietnam’s engagement in 20 Free Trade Agreements (FTAs), with 16 currently active, two under negotiation, and two pending-implementation. Future FTAs may include nations from South America, the Middle East, and Africa, with a focus on upgrading chapters dedicated to e-commerce.
Nguyen Thanh Hung from Vecom highlighted the existing challenges for Vietnamese businesses in accessing markets in South America and Africa through traditional export methods. E-commerce presents an avenue for easier market penetration.
Nguyen Thuy Anh from the Department of E-commerce and Digital Economy mentioned that efforts are underway to draft a national e-commerce development plan for 2026-2030, which will include policies to support online exporting for Vietnamese companies.
The upcoming policies aim to assist MSMEs in connecting with large e-commerce platforms to increase their export opportunities.
Lastly, according to Do Huy Tho from the General Department of Customs (GDC), a processing system for electronic customs data for e-commerce transactions will be ready by the first quarter of 2025, creating a robust database for cross-border e-commerce in Vietnam.
