At the 2024 Cross-Border E-commerce Conference held earlier in October in Hanoi, Amazon Global Selling Vietnam recognised the efforts of five standout Vietnamese sales partners: Thyoi, Greenvibe, Carve Vietnam Tech, HT Trading Group, and Vinalink. These partners were honoured for their exceptional growth, innovative spirit, and strong adaptability in global markets.

Cross-border e-commerce is growing over twice as fast as traditional e-commerce, photo Le Toan

Over the past five years, thousands of Vietnamese businesses have entered the global marketplace through Amazon. The number of products sold by Vietnamese sales partners has surged by over 300 per cent, and the number of Vietnamese companies achieving annual sales of $1 million on Amazon has increased 10-fold.

Meanwhile, home appliance manufacturer Sunhouse is expanding into international markets with the aim of becoming a global brand. Sunhouse has successfully launched eight key products in the houseware category.

“Expanding into international markets is a strategic move for Sunhouse to elevate the standing of Vietnamese enterprises and brands on the global stage,” said its chief marketing officer Le Tung.

“We not only improved our cost structure but also exceeded growth expectations, with total year-to-date revenue growth of 30 per cent by the end of September 2024, with some months seeing increases of 50-100 per cent.”

According to Amazon Global Selling Vietnam, cross-border e-commerce is expected to grow 2.3 times faster than traditional e-commerce from 2022 to 2025, with annual growth rates of 28 per cent projected through 2027. In 2023, global retail e-commerce sales reached $5.8 trillion, with expectations of a 39 per cent increase to more than $8 trillion by 2027, presenting vast opportunities for Vietnamese businesses to engage in cross-border trade.

The Vietnamese government has shown strong support for cross-border online trading, including it in the 2021-2025 National E-commerce Development Master Plan. The country is ranked among the top 10 nations with the highest e-commerce growth globally, and leads Southeast Asia in this regard.

A report by Access Partnership showed that in 2023, business-to-consumer e-commerce exports from Vietnam reached $3.6 billion, with micro, small, and medium-sized enterprises contributing one-quarter of that total. Notably, 93 per cent of surveyed companies said they would not be able to export without e-commerce.

Despite Amazon’s relatively short official presence in Vietnam, it has rapidly attracted thousands of businesses to its platform. “When I first visited Vietnam in 2017, I saw many online sellers eager to do business,” said Gijae Seong, CEO of Amazon Global Selling Vietnam. “Looking back over those years, the growth in scale and quality in this country is impressive.”

However, the rapid development of e-commerce also brings challenges. Seong highlighted two key issues for smaller businesses: selecting the right products to sell and managing costs, particularly logistics.

“Product selection requires an understanding of market demand, regulations, and product compliance, allowing sellers to make informed decisions. Flexibility is essential to incorporate customer preferences into product development,” Seong said. “The second challenge is cost, especially in logistics and inventory management. Selling products from Vietnam to the United States, for example, requires significant investment.”

According to e-commerce data provider Cube Asia, Southeast Asia’s e-commerce landscape faces obstacles, particularly in logistics and infrastructure. Despite ongoing investments, inconsistencies in infrastructure quality across the region make reliable, cost-effective delivery challenging, affecting both shipping costs and timelines.

A raft of regulatory complexities further complicate matters. Diverse legal, regulatory, and tax frameworks, particularly in customs clearance, create various barriers, with varying duties, taxes, and, in some cases, corruption impeding smooth trade, Cube Asia added.