Brian Jeffrey
Addressing E-commerce for Vietnamese Goods
A recent workshop titled ‘Supporting Vietnamese Goods on E-Commerce Platforms’ was organized by Tuoi Tre newspaper in collaboration with the Vietnam E-commerce Association (Vecom).
The event raised questions about the feasibility of supporting Vietnamese goods on e-commerce sites and their visibility on these platforms.
Current Market Insights
Nguyen Minh Duc, Vecom’s deputy chair, referenced Google statistics showing an 18% growth in Vietnam’s e-commerce in 2023. Notably, 90% of consumers opted for well-established platforms like Shopee and TikTok Shop for their purchases.
Duc explained that Vecom has been proactive in providing e-commerce training for businesses and collaborating with various local trade departments to promote e-commerce initiatives. Multiple workshops have been held to help Vietnamese products reach international platforms, including Amazon.
Challenges for Local Brands
However, data from a recent survey indicated that out of the top 10 selling brands on local e-commerce sites, only Vinamilk was a Vietnamese brand, and it ranked last on the list. The others were international brands from the US and China.
When it comes to categories like fashion, home goods, and cosmetics, only 17% of consumers showed interest in Vietnamese products. Conversely, there was a strong interest in domestic farm produce and food, with 80% of consumers favoring local brands in that sector.
Opportunities for Growth
Duc emphasized that local businesses must leverage their advantage of understanding the domestic market and providing excellent after-sales service to enhance their competitiveness and sales.
Utilizing advanced technology will be crucial; for example, livestream selling and AI can significantly facilitate online sales. Livestream sessions can generate thousands of deals with ease.
Duc noted that many businesses only need a brief 2-3 day training session to effectively conduct livestreams and ads, which can attract tens of thousands of viewers and lead to numerous orders.
Support Initiatives and Recommendations
Tran Quoc Bao, deputy CEO of Kido Group, remarked that there has been unprecedented support for Vietnamese goods in the e-commerce realm, with various media campaigns and support initiatives in place.
Yet, success hinges on businesses adopting sound development strategies and maintaining commitment.
Bao proposed the idea of ‘online cooperatives’ where individuals lead collaborations with e-commerce platforms, sharing initial costs amongst the members. Initial investments in e-commerce are particularly critical for startups.
Additionally, creating distinct labels for Vietnamese brands online would help consumers readily identify local products while shopping on e-commerce platforms.
Strategic Directions for Enterprises
Nguyen Minh Hung from the HCM City Department of Industry and Trade echoed that, despite numerous support programs, Vietnamese enterprises struggle to make an impact on domestic e-commerce platforms.
With technological advances, local firms need to formulate strategies for reaching global markets and increasing their sales volume.
Need for Comprehensive Support
Nguyen Ngoc Dung, chair of Vecom, highlighted the necessity of aiding manufacturers in overcoming challenges associated with showcasing their products online.
Many manufacturing enterprises lack the essential support from agencies, service partners, and technology firms, hindering their growth in a market dominated by foreign products.
Furthermore, Dung noted that Vietnamese firms often lack the financial resources to effectively advertise their products on e-commerce marketplaces.
Competing with International Platforms
International e-commerce platforms invest heavily in advertising to draw attention and stimulate consumer interest, often attracting buyers even when their products may not excel compared to domestic alternatives.
Recently, TikTok has significantly invested in promoting Vietnamese goods across online platforms, and its support for the OCOP (One Commune One Product) program has been particularly successful. This initiative, proposed by the Ministry of Agriculture and Rural Development, is being executed by the Ministry of Industry and Trade alongside Vecom.
