E-commerce (e-commerce) has become an undeniable trend in the modern business world. With the development of technology and the internet, e-commerce has become a popular shopping channel across the globe. In Vietnam, e-commerce is also developing strongly and especially cross-border e-commerce is becoming an advanced development potential and trend.
1. What is cross-border e-commerce?
Cross-border e-commerce is an e-commerce business between different countries. This is an effective way of doing business for businesses looking to source new customers and expand their operations. Cross-border e-commerce includes activities such as import and export of goods, online sales, money transfer and online payments.
2. Potential of cross-border e-commerce in Vietnam
Participating in cross-border e-commerce helps businesses gain access to international markets and expand their operations. This helps businesses increase sales, expand customers and improve competitiveness in the international arena.
Vietnam is one of the countries with the fastest economic growth in Southeast Asia. This has created many opportunities for entrepreneurs in the field of e-commerce. With a population of more than 99 million people, Vietnam is a potential market for cross-border e-commerce. According to a report from East Asia and Pacific Trade Council (PECC .)), cross-border e-commerce can reach 31 billion USD in 2025 in Vietnam.
Leverage sourcing:
Engaging in cross-border e-commerce helps businesses find new sources of sourcing, improve quality, and reduce production costs. This helps businesses improve production efficiency and compete in the international market.
Good transportation network
In addition, Vietnam has many favorable characteristics for the development of cross-border e-commerce.
Firstly, Vietnam has a good transportation network, including road, rail, waterway and air.
Second, Vietnam has a number of large seaports, including Cat Lai port in Ho Chi Minh City. Ho Chi Minh and Hai Phong port in the North. These seaports can meet the needs of cross-border e-commerce.
Third, Vietnam has a number of large commercial centers, including Ho Chi Minh City. Ho Chi Minh and Hanoi. These shopping centers provide a good platform for cross-border E-commerce businesses to access the Vietnamese market.
Brand development capabilities:
Cross-border e-commerce helps businesses reach international customers and develop brands in the international market. This helps businesses increase awareness and prestige in the market, and increase their ability to reach new customers.
Sale off:
Engaging in cross-border e-commerce helps businesses reduce shipping, insurance and other fees. This cost reduction helps businesses compete in the international market with more competitive prices and improve their competitiveness.
E-commerce platform development
The e-commerce platform is growing strongly in Vietnam with the appearance of many large platforms such as Shopee, Lazada, Tiki, Sendo and smaller platforms. These platforms are increasingly being trusted and used by consumers.
According to statistics from the Ministry of Industry and Trade, the value of e-commerce in Vietnam has grown by 30% in 2022 and reached 15.8 billion USD. This shows the development potential of e-commerce in Vietnam. With the development of the e-commerce industry, cross-border e-commerce will also thrive.
3. Development trend of cross-border e-commerce in Vietnam
In recent years, e-commerce has become an indispensable part of Vietnamese people’s daily lives. In the context of the COVID-19 pandemic, online shopping has become a popular trend, helping consumers save time and reduce the risk of infection. However, not only in the country, cross-border e-commerce is also becoming a strong development trend in Vietnam.
Strengthen international cooperation: To develop cross-border e-commerce in Vietnam, businesses need to look for opportunities to cooperate with international partners. Businesses need to find reputable and experienced partners in the field of cross-border e-commerce to take advantage of them to develop.
Large enterprises such as Alibaba, Amazon, Shopee and Lazada are investing heavily in the e-commerce market in Vietnam. These businesses are looking to develop online payment and delivery systems to increase convenience for consumers.
In addition, Vietnamese enterprises are also developing strongly in this field. For example, Tiki, Sendo, Adayroi and Vatgia are becoming formidable competitors of foreign enterprises.
Improve the quality of products and services: To compete in the international market, businesses need to focus on improving the quality of their products and services. This helps businesses make a difference and unique in the international market to attract customers.
Investing in technology: Businesses need to invest in technology to optimize business operations and reduce production costs. Technologies such as artificial intelligence, big data, blockchain and IoT will help businesses increase production efficiency and compete in the international market.
Human resource training: Enterprises need to invest in human resource training to improve their competitiveness in the international market. Employees need to be trained in e-commerce skills, foreign languages and management skills to meet the requirements of the international market.
4. Challenges in developing cross-border e-commerce in Vietnam
Although cross-border e-commerce is growing strongly in Vietnam, there are still many challenges that need to be addressed. One of those challenges is related to the online payment system. Online payment is still facing many difficulties in Vietnam, including lack of infrastructure and infrastructure, safety and information security issues, as well as lack of knowledge and awareness. consumer awareness of online payments.
In addition, regulations and policies related to e-commerce also need to be improved to create more favorable conditions for businesses and consumers. This includes improving import and export processes, reducing the value of tariffs and increasing transparency in business processes.
5. Conclusion
Cross-border e-commerce is growing strongly in Vietnam, and is becoming an important trend in the e-commerce industry. However, for sustainable and effective development, businesses and governments need to improve infrastructure systems, online payment systems, as well as regulations and policies related to e-commerce. Only then will cross-border e-commerce be able to flourish and benefit both businesses and consumers.
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