Number of million dollar export businesses via e commerce soars

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Number of million-dollar export businesses via e-commerce soars
The representative of Amazon Global Selling Vietnam provided information at the conference. Photo: N.Linh

Thousands of businesses exporting online via amazon

Mr. Gijae Seong, Managing Director of Amazon Global Selling Vietnam, shared at the “Cross-Border E-commerce 2024 – Vietnamese excellence, global Takeoff” conference held on May 22, 2024, in Hanoi.

According to the representative of Amazon Global Selling Vietnam, the strong growth index reflects the flexibility, proactive global outreach, and readiness to diversify product portfolios to meet international consumer preferences of local businesses.

Notably, Vietnamese businesses continue to make remarkable cross-border export achievements, with the number of businesses achieving annual sales of US$1 million on Amazon increasing tenfold in just five years. Besides exporting products, Vietnamese exporters also invest in brand development, aiding long-term growth.

“In five years, the number of Vietnamese selling partners participating in Amazon’s Brand Registry program has increased 35 times,” Gijae Seong noted, adding that data from Amazon over the past five years showed that the product categories with the highest growth rates from Vietnamese selling partners included health and personal care, home, kitchen, apparel, and beauty. This trend reflects the continuous innovation efforts of businesses, constantly expanding and diversifying product portfolios to meet the growing demands of customers.

According to the Department of E-commerce and Digital Economy, e-commerce in Vietnam is experiencing a robust development phase and has become an essential component of the digital economy in Vietnam. Retail e-commerce sales have seen an average growth of about 20% over the past ten years, placing Vietnam among the fastest-growing e-commerce countries in the region and the world.

The global e-commerce market is forecast to experience strong growth, with projected revenues reaching US$7.4 trillion by 2025. As Vietnam increasingly integrates into the global economy and with opportunities from new-generation free trade agreements, the shift from traditional business to digital platforms is considered an effective solution for businesses to penetrate and expand export markets.

Nguyen Thi Minh Huyen, Deputy Director of the Department of E-commerce and Digital Economy (Ministry of Industry and Trade), stated that online exports have opened global opportunities for Vietnamese businesses of all sizes. To promote e-commerce as a pioneering pillar of the digital economy by 2025, the government has implemented strategic policies integrating advanced technologies from the Fourth Industrial Revolution. This will effectively boost business cycles, modernize distribution systems, enhance competitiveness, and foster growth in both domestic and export markets.

Despite rapid development and numerous advantages, cross-border e-commerce faces several challenges. According to Huyen, accessing major e-commerce platforms, especially for businesses in the north, is difficult due to a lack of e-commerce development personnel, market information, business strategy skills, and brand protection in cross-border e-commerce.

Enhancing cross-border e-commerce capacity

To address these challenges and maximize the export potential of Vietnamese products, turning cross-border e-commerce into a factor that promotes exports and enhances international competitiveness requires the cooperation of management agencies, major e-commerce platforms, e-commerce support service providers, and the efforts and determination of businesses.

Regarding the shift to online e-commerce by enterprises, Truong Van Cam, Vice President of the Vietnam Textile and Apparel Association, said that the textile industry was developing rapidly. In the first four months of this year, textile and apparel exports increased by 7% compared to 2023, reaching US$12 billion. However, Vietnamese brands still have little presence on the global textile map, which is a weakness of the enterprises.

At the conference, representatives from associations, industries, businesses, and experts shared and discussed global e-commerce trends, particularly export activities through the Amazon e-commerce platform. They focused on analyzing specific advantages, difficulties, and challenges in participating in cross-border e-commerce activities by domestic and foreign businesses. Additionally, they oriented export-oriented industries that fit the economic, geographical, and social conditions of the economic regions.

At the conference, Amazon Global Selling Vietnam announced phase two of the program “Cross-border e-commerce: The breakthrough era,” in collaboration with the Vietnam e-commerce and digital economy agency by launching the initiative “Industry linkage – Growth with cross-border e-commerce.” The program will coordinate with key industry associations to jointly promote and enhance cross-border e-commerce capabilities for leading export sectors, including increasing awareness, providing additional training resources, and supporting member businesses of these associations to develop and succeed with global e-commerce.

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