Cross-border e-commerce: A driving force for Vietnamese businesses to expand globally

DNHN - Cross-border e-commerce is opening a new era for Vietnamese businesses and affirming Vietnam's position on the global trade map.

Amidst strong globalization, cross-border e-commerce (CBEC) has become the "golden key" unlocking international markets for Vietnamese businesses. From startups to large corporations, CBEC not only helps them easily reach global customers but also affirms the Vietnamese brand on the world trade map. As the global market becomes more dynamic, it is also the right time for Vietnamese businesses to make breakthroughs.

The number of products from Vietnamese partners on Amazon has increased by more than 300% in the past 5 years

In 2023, global retail e-commerce sales were estimated at $5.8 trillion, and it is forecast to grow by 39% in the coming years, expected to surpass $8 trillion by 2027. The vibrancy of global e-commerce opens up great opportunities for Vietnamese businesses seeking international trade opportunities.

In Vietnam, according to the latest report from Access Partnership, the value of Vietnam's B2C e-commerce exports in 2023 reached VND 86 trillion, with small, medium, and micro-enterprises contributing 26%. Notably, 93% of the surveyed small, medium, and micro-enterprises stated that they could not export without e-commerce. The national e-commerce development plan for the 2021–2025 period also emphasizes the orientation of supporting cross-border e-commerce development in Vietnam. These positive signs show that Vietnamese businesses are in a good position to seize the opportunity to export through e-commerce, contributing to the growth of the national digital economy.

In the past 5 years, thousands of Vietnamese businesses have started and expanded their global operations with Amazon. These businesses not only sell products but also focus on building brands and strengthening their international presence.

At the 2024 Cross-border E-commerce Conference in Hanoi, with the theme "Accelerate. Reach. Breakthrough Success" organized by Amazon Global Selling Vietnam this morning (October 9), Mr. Gijae Seong, General Manager of Amazon Global Selling Vietnam, stated: "Exporting through e-commerce is a good and useful opportunity for businesses in all industries and fields. Taking advantage of this opportunity, Vietnamese businesses have achieved many accomplishments, especially on Amazon. The number of products sold on Amazon from Vietnamese seller partners has increased by more than 300% in just the past 5 years. And not only selling products, businesses are truly delving into brand development, and the importance of building brands is reflected in the numbers of Vietnamese businesses registering with Amazon’s Brand Registry. This registration has increased 35 times. Additionally, the top 5 fastest-growing and most successful product categories according to our records are: health and personal care; home goods; kitchen; apparel; beauty."

To illustrate these impressive figures, Mr. Gijae Seong listed a series of typical Vietnamese businesses in many fields that have rapidly developed thanks to e-commerce. Specifically:

In the wood product category, Mr. Gijae Seong mentioned that this has been one of Vietnam's strongest export items for many years. Companies like TIDITA, Beefurni are examples of very successful names in combining traditional craftsmanship with creative strategies on e-commerce platforms.

As for health and personal care products, this is also a field that has contributed greatly to expanding into the global market, exemplified by the brand CVI Pharma, which has brought quality products to contribute to export growth.

Clothing and fashion products have also been one of the strong-growing sectors in recent years. There are many influential domestic Vietnamese fashion brands in this field. One can mention the brand SIXDO, which is very famous and produces quality fashion products. With the aspiration to stand shoulder-to-shoulder with major global brands, they are always ready to improve their products to meet the tastes of international customers.

The beauty industry also brings great opportunities. Brands like Abera are a great example because they combine local production and material advantages with modern technology to bring quality products to global consumers.

Finally, products such as herbs, cashews, dried fruit, herbal tea, and coffee are also selling very well on Amazon's e-commerce platform. Not only large brands like Trung Nguyên but also many startups in this category such as NewBam and Lafooco are gradually expanding into more international markets.

"Brands like those mentioned above show the abundant potential and strength of Vietnamese businesses to accelerate with global e-commerce. These brands have truly leveraged Amazon's global investment and resources in cross-border sales programs," said Mr. Gijae Seong.

Cross-border e-commerce opens up a new future for Vietnamese businesses

Sharing with reporter, Mr. Nguyễn Nguyên – Deputy General Director in charge of business development at Trung Nguyên Legend Group, assessed that e-commerce in the first 8 months of this year has achieved outstanding growth. Through this rapid development, Vietnamese businesses can quickly create distribution systems to households in far-off markets. Additionally, through cross-border e-commerce systems, Vietnamese brand values can quickly reach international communities.

With the continuous development of global e-commerce along with government support policies for e-commerce, including cross-border e-commerce, Vietnamese businesses are facing new opportunities to expand their international footprint.

According to Mr. Nguyên, cross-border e-commerce brings many significant benefits to Vietnamese businesses. First, e-commerce helps Vietnam quickly promote agricultural and seafood products—those with high regional value—globally. Second, the development of cross-border e-commerce helps Vietnam's young workforce integrate and enhance their digital capabilities quickly. Finally, e-commerce helps elevate Vietnam's value and scale in the global supply chain.

"E-commerce not only helps large businesses develop but also creates favorable conditions for startups and small and medium-sized enterprises (SMEs). For startups, e-commerce helps them not rely on the domestic market before reaching international markets. For SMEs, e-commerce helps expand distribution channels without incurring high costs and time. Meanwhile, for large corporations like Trung Nguyên Legend, e-commerce helps promote core values, philosophies, and the story of the brand to global customers," analyzed Mr. Nguyên.

Along with these opportunities, Mr. Nguyên also noted that Vietnamese businesses still face difficulties in logistics, and online marketing costs remain high compared to the financial capacity of many companies, especially SMEs.

Sharing with the Business and Integration Magazine about experience for SMEs participating in cross-border e-commerce platforms, Mr. Nguyên, as a senior director of Trung Nguyên Legend Group, revealed: "When Trung Nguyên started, our Chairman Đặng Lê Nguyên Vũ began from negative numbers, with no assets, even having to borrow to build the business. However, through persistence with creativity and long-term strategy, Trung Nguyên has become one of the first coffee businesses to participate in e-commerce platforms and reap success. The lesson for SMEs, in my view, is that you don't need large resources from the beginning; what matters is a clear direction and focus on building long-term value. If you only focus on short-term profits, you may miss opportunities for sustainable growth. Therefore, businesses should invest in developing core values, always innovate to create differentiation and align with market needs. Creativity and value are not limited by size but depend on the strategic vision and execution ability of each business. When you focus on developing value, success will come in a sustainable and lasting way."

Bao Bao