Vietnam boosts exports via e-commerce channel

09:00 | 14/11/2019 Trade

(VEN) - The Ministry of Industry and Trade’s Vietnam Trade Promotion Agency (Vietrade) and Amazon Global Selling announced a cooperation plan, which aims to assist Vietnamese businesses in enhancing exports and developing brand names through e-commerce. Vietrade Director Vu Ba Phu talked about the issue with the press.

vietnam boosts exports via e commerce channel
Vietrade Director Vu Ba Phu

What is the goal of the global export program?

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.

The application of e-commerce in business activities is an indispensable and practical trend in Vietnam, with e-commerce platforms yielding positive results for many businesses, especially for small- and medium-sized enterprises. It allows them to reach customers outside their own geographic region.

However, only 11 percent of Vietnamese businesses have joined e-commerce platforms. The rest are constrained by limited e-commerce applications, undeveloped IT infrastructure, weak marketing tools, and language barriers.

Therefore, Vietrade continues to advise businesses in accessing export markets. Developing business activities on e-commerce platforms is one of the fastest ways for businesses to build brand names and reach customers.

What are initial results?

vietnam boosts exports via e commerce channel

Based on criteria such as export experience, e-commerce capacity, and levels of human resources, the Ministry of Industry and Trade selected 105 businesses to receive training and consultancy in selling their products through Amazon.

These firms were guided on how to open accounts, complete export procedures, transport goods, and promote their products on the platform. At the beginning, they faced many difficulties in terms of techniques and language. However, with the support of experts, they have completed the training.

As of date, more than half of the selected enterprises have successfully opened sales accounts on Amazon. Some 16 businesses have displayed their products on the Amazon website, while 14 have conducted transactions with US consumers.

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.

Could you tell us more about a specific plan for the cooperation program with Amazon?

Between now and 2021, Vietrade and Amazon will join hands in programs on global export and brand name development via e-commerce, and e-commerce training for local enterprises, providing an array of activities. Accordingly, Vietnamese small- and medium-sized enterprises will be guided 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.

Amazon will support Vietrade and other Vietnamese trade promotion organizations to open a joint sales account on its website. Vietrade is expected to set up a sales account and select some businesses with suitable products to share the account in order to help small and medium-sized enterprises practice and learn from experience before using their independent sales accounts.

To ensure long-term business development on e-commerce platforms, Vietnamese businesses need to pay special attention to reputation and product quality.

Developing business activities on e-commerce platforms is one of the fastest ways for businesses to build their own

brand names and reach customers.

Recorded by Bui Viet