E-commerce channels open up unique opportunities for SMEs

08:56 | 15/12/2019 Trade

(VEN) - The Ministry of Industry and Trade and Amazon Global Selling announced a cooperation plan, which aims to assist Vietnamese businesses in enhancing exports and developing brand names through e-commerce.

e commerce channels open up unique opportunities for smes
Deputy Minister of Industry and Trade Do Thang Hai (middle) witnesses the announcement of the cooperation initiative between the Vietnam Trade Promotion Agency and Amazon Global Selling

Positive impact

E-commerce has become very popular in many countries around the world thanks to its advantages, such as time saving, convenient transactions, and cost optimization. E-commerce platforms in Vietnam have yielded positive results for many businesses, especially for small- and medium-sized enterprises (SMEs), allowing them to reach customers outside their own geographic region. In fact, many Vietnamese businesses, such as Andre Gift Shop and Paper Color, have successfully sold their products on major e-commerce channels. These channels introduce Vietnamese brands to a wide audience, attracting foreign consumers.

Playing a central role in trade promotion, the Vietnam Trade Promotion Agency (Vietrade) cooperated with Amazon Global Selling to select 105 businesses to receive training and consultancy in selling their products through Amazon. These firms are guided on how to open accounts, complete export procedures, transport goods, and promote their products on the platform.

After six months of implementation, the program has yielded encouraging initial results, with many businesses opening sales accounts on Amazon successfully, displaying their products on the Amazon website, and conducting transactions with US consumers. For Vietnamese SMEs, it is not easy to meet foreign customers directly and sign export contracts. E-commerce floors will help businesses promote advertisement in a simple and cost-effective manner. When Vietnamese businesses make a strong impression on customers with guaranteed quality commitments, they will be able to sell these products directly.

Vietrade Director Vu Ba Phu said that although the number of businesses remains low, they have achieved success in exporting goods to the US via the B2C e-commerce channel, one of the goals that Vietrade and Amazon set out from the early days of negotiations. The program promises to yield better results in the future.

Plans for the future

E-commerce is gradually becoming an export channel and also an effective export promotion channel for Vietnamese brand goods. Vietrade has developed medium- and long-term trade promotion plans with a focus on strengthening exports and promoting Vietnamese brands through e-commerce and digital technology platforms.

Under the global export program, Vietrade and Amazon Global Selling will make greater efforts to support Vietnamese businesses on how to apply and use the Amazon Brand Registry 2.0 or the Amazon Enhanced Brand Content (EBC). Vietrade and Amazon will also work together to select Vietnam’s best-selling and reputable products and put them into the priority list displayed on Amazon. In addition, through trade promotion programs at home and abroad, the Ministry of Industry and Trade will coordinate with Amazon to launch advertisement, helping businesses seek more potential partners.

To ensure long-term business development on e-commerce platforms, Vietnamese businesses need to pay special attention to their reputation and product quality. In addition, they are encouraged to promote branding.

Cooperation with Amazon Global Selling to help Vietnamese businesses boost exports via the e-commerce channel is an important initiative, which can help them reach out to more than 300 million customers, including over 100 million Prime members around the world.

Hai Linh