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In recent years, Vietnam has witnessed a surge in e-commerce exports, presenting a golden opportunity for numerous micro, small, and medium-sized enterprises (MSMEs) to capitalise on the booming e-commerce industry.
As per findings from an industry report, business-to-consumer (B2C) e-commerce exports in the country were valued at US$ 3.5 billion, accounting for 1% of the total export revenue last year. If the MSMEs accelerate their adoption of e-commerce for exporting products and services, Vietnam’s e-commerce export revenues could potentially increase to US$ 5.5 billion by 2027 with an annual growth rate of 7%.
Vietnamese businesses have reaped substantial benefits from a privately-owned e-commerce export initiative that established a dedicated team in Vietnam in 2019. This business support programme has successfully reached over 300 million consumers on the e-commerce platform, spanning more than 200 countries and territories around the globe.
In 2022, a report on the programme revealed that approximately 10 million made-in-Vietnam products were sold to customers through the e-commerce site. These include products such as dried food, beverages, medicines, garments and textiles, and handicrafts. The company expects Vietnam’s exports via the platform will hit a record high this year.
As reported by the platform, in the previous year, household appliances, clothing and textiles, healthcare products, and convenience goods produced by Vietnamese brands garnered significant favour among international online shoppers.
A workshop earlier this year in Ho Chi Minh City discussed how food, beverages, and agricultural products have experienced significant growth on e-commerce platforms and are expected to have substantial potential for further expansion.
Lai Viet Anh, the Deputy Director of the Vietnam E-commerce and Digital Economy Agency, commented that Vietnamese companies are quickly adapting to the cross-border e-commerce trend, which is enabling their products to reach a wider range of markets.
According to Anh, numerous market analysts have indicated that Vietnam’s e-commerce export revenue is poised to exceed $10 billion in the next four years. To achieve this target, Vietnamese companies should address four primary obstacles, which include navigating import market regulations, enhancing their competitive advantages, managing marketing and logistics costs, and improving access to market information.
Experts have indicated that e-commerce has the potential to create export opportunities for a wide range of products, aligning with Vietnam’s core strengths. They recommend that exporters implement promotional campaigns, including special discounts and free shipping for high-value orders, while also refining their products to better align with consumer preferences.
Vietnam has recognised the significant potential of cross-border e-commerce, in line with the government’s policies for digital economy development. This approach serves as an effective supplementary channel for traditional international trade, leveraging technological advantages to expand the reach of Vietnamese products to a wider global customer base. Vietnam’s digital economy is the fastest growing in Southeast Asia, powered by e-commerce. The main driving force behind Vietnam’s e-commerce sector is the strong consumer interest in food delivery services (60%) and online grocery shopping (54%). Among urban digital users in Vietnam, the adoption levels are the highest, with e-commerce, food delivery services, and online groceries leading the way at 96%, 85%, and 85%, respectively.
In the next five years, ASEAN is projected to attain a dual annual growth rate of 11.43%, matching the growth rates seen in developed countries like the US, China, and Canada. By the end of 2023, revenue from e-commerce is expected to reach US$ 113.9 billion. The figure is expected to reach US$ 175 billion by 2027.
