09:00 | 07/09/2020 Economy
(VEN) - The restrictions imposed by the Covid-19 outbreak have generated many alternative trade methods, with online business-to-business transactions becoming increasingly popular.
Guests of an online trading session communicate through interpreters
China’s Zhejiang Province is an important trading partner of Vietnam because of its large market size of over 57 million people. Zhejiang is also known as an original equipment manufacturer (OEM) that produces exports goods according to orders. In order to maintain commercial transactions in the context of the Covid-19 pandemic, at the beginning of March 2020, the Department of Commerce of Zhejiang proposed that the Vietnam National Trade Fair and Advertising Company (Vinexad), a prestigious Vietnamese exhibition organizer, arrange an online trading session for enterprises in Zhejiang and Vietnam.
According to Nguyen Hong Nhung, Vinexad’s Project Director, March was a crucial month for many manufacturers who were running out of raw materials for production and export, including apparel. Following the proposal of the Zhejiang Department of Commerce, which provided a list of some 100 suppliers, Vinexad sent out information and invitations to dozens of domestic enterprises. The first online trading session of the Covid-19 season took place over four days and included about 60 Vietnamese companies and 100 suppliers from Hangzhou, the capital of Zhejiang and Suzhou.
This online trading session has contributed to boosting trade between the two markets. To improve the efficiency of transactions, Vinexad cooperated with the Zhejiang Department of Commerce in selecting reputable manufacturers that meet strict requirements, including a research and development (R&D) system and experience in exporting to large markets. It also arranged simultaneous interpretation and/or meetings with partners in their showrooms and factories in order to increase efficiency and trust for transactions.
The online trading session was a complex undertaking. The initial obstacle was guiding enterprises in the use of the relevant apps for the B2B (business to business) meetings. Another problem stemmed from the fact that Zhejiang manufacturers usually accept only large orders, but in this case they adjusted their requirements to Vietnamese participants’ needs, Nhung explained.
Vinexad is a pioneer in implementing multi-point, multi-distance trade promotion connection models at exhibitions and fairs and most participants in Vinexad events prefer trade on technology platforms.
According to a company official, transactions on e-commerce platforms, such as Alibaba, MadeinChina, GlobalSources and Amazon, entail sellers and buyers finding each other. However, online commerce between selected businesses through meeting schedules, direct interpretation, reputable enterprise information, is growing popular. This model also provides flexible online and offline connections between foreign enterprises in Vietnam and abroad and with domestic enterprises.