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Hanoi businesses engage in e-commerce platforms to expand global reach
Ngoc Mai 20:33, 2023/06/24
By 2026, cross-border retail sales of goods in Vietnam are projected to reach VND256.1 trillion (US$10.9 billion).

The adoption of e-commerce platforms by businesses in Hanoi has been in line with the general trend, enabling them to tap into domestic and international customer bases and expand their export markets. It has played a crucial role in driving economic growth and promoting local development, said Ta Dung Tri, Deputy Head of the Trade Management Office under the Hanoi Department of Industry and Trade.

E-commerce is still an area of untapped potential for local businesses. Photo: Pham Hung/The Hanoi Times

According to the Vietnam e-Business Index Report 2023, Hanoi ranks second in the country with a score of 85.7.

B2C e-commerce sales are expected to contribute 11% to the total retail sales of consumer goods and services in Hanoi. It is estimated that about 50% of Hanoi's population shops online, and about 45% of the city's businesses operate on e-commerce platforms.

Nguyen Le Thang Long, Deputy General Director of An Phat Holdings, shared the company's journey from a traditional manufacturer to a thriving international business by leveraging Amazon to reach customers on a global scale.

"With access to valuable resources, innovative tools, and support from a local-global sales team, we have successfully introduced our products to customers around the world," Long said.

Long hopes that An Phat Holdings' success story can inspire Vietnamese sellers on Amazon, motivating them to adopt sustainable practices and strive for new achievements in their businesses.

Tran Thi Yen Phi, CEO of DSW Trading and Services, mentioned that the company's sales had grown significantly from its first export order of US$3,000 via Alibaba's e-commerce platform to reach US$260,000.

Building on this momentum, DSW has set a target to reach $3.5 million in export turnover soon, further expanding the reach of Vietnamese goods in the EU market, Phi said.

"Through e-commerce platforms such as Amazon, Alibaba, Shopee Global, and others, consumers around the world have the opportunity to buy Vietnamese products in bulk or as retail items from Vietnamese vendors," she said.

E-commerce remains untapped potential

In the first five months of 2023, Hanoi achieved an impressive export turnover of $6.78 billion and imports of $14.4 billion, despite the challenges posed by global political instability.

E-commerce played a significant role in these results, said Tri of the Department of Industry and Trade.

But he also acknowledged the challenges of integrating e-commerce into the export market. Businesses face stiff competition from other countries, poor e-commerce management skills, and complex customs and international shipping procedures, Tri said.

"Comprehensive measures are needed to address these issues to improve the efficiency of online exports and create favorable conditions for businesses," he stressed.

Nguyen Van Thanh, Director of the E-commerce Development Center at the E-commerce and Digital Economy Agency (iDEA), highlighted the potential of cross-border e-commerce in the digital age. He pointed out that cross-border trade is a fast-growing trend in many countries worldwide, and Southeast Asia in particular has significant growth potential.

Thanh emphasized that cross-border e-commerce in Vietnam still has untapped potential and is in line with the government's policy to develop the digital economy.

By 2026, cross-border retail sales in Vietnam are projected to reach VND256.1 trillion ($10.9 billion).

To seize these opportunities, the iDEA has carried out various programs to promote digital transformation, refine online export policies, and address barriers faced by businesses.

"The goal is to provide solutions based on insights from businesses. From there, we would provide educational resources and training programs to help Vietnamese businesses expand their international operations and succeed on a global scale," Thanh said.

TAG: Hanoi news Vietnam news Hanoi e-commerce hanoi amazon Hanoi businesses hanoi cross-border trade
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