International expansion through cross-border ecommerce07/02/2020While Vietnam is increasingly integrating into the world economy, shifting from traditional business to digital platforms is considered an effective solution for businesses to expand export markets.
Speaking at a seminar themed “The EU-Vietnam Free Trade Agreement (EVFTA) and Digital Transformation, a new chapter for Vietnam’s exports” on November 21 in Hanoi, Doan Duy Khuong, Vice Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) said that in developing countries, online export has become the first choice of businesses, and an inevitable trend, as importers around the world increasingly seek customers through the internet. The US, Europe, Japan, and the Republic of Korea (RoK) are major importers of Vietnamese goods, and the percentage of internet users in these countries and territories is high, providing relatively easy access for Vietnamese exporters to these markets.
Giant e-commerce platforms like Alibaba or Amazon have been seeking to enter the Vietnamese e-commerce market, which will provide domestic firms with more digital platforms to do business.
Cross-border e-commerce is forecast to increase to US$3.3 trillion in the next two years, reflecting this indispensable trend for speedy business orders. Although e-commerce cannot completely replace traditional business, firms must apply it if they are to succeed in the era of the fourth industrial revolution or Industry 4.0.
The EU-Vietnam Free Trade Agreement is expected to be ratified and implemented in the first half of 2020. The EU commits to eliminating 85.6 percent of tariff lines on Vietnamese goods (equivalent to 70.3 percent of Vietnam’s export value to the EU) as soon as EVFTA takes effect.
“The EU’s exports to Vietnam are expected to increase more than three percent in value per year, strengthening Vietnam’s position as the bloc’s second largest trade partner, and the biggest commodity exporter in ASEAN (the Association of Southeast Asian Nations),” Khuong said.
Besides advantages in trade and investment with European partners, EVFTA will present challenges for Vietnamese enterprises. Some industries will face increasingly strict EU quality, safety and origin-related barriers.
Taking advantage of the EVFTA is not easy for small to medium-sized Vietnamese enterprises that have poor labor resources and management skills, as they must meet strict product origin requirements.
Judy Ke, Training Specialist and International Trade Consultant, provided enterprises with analysis and evaluation on trends in digital transformation, which have had major effect on global import and export activities. According to Judy Ke, 2020 will be a golden time for Vietnam’s exports and Vietnamese exporters should take advantage of this moment to boost sales through e-commerce platforms that will help them reduce staffing and logistics costs, save time, and connect with customers around the globe.
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Master plan on national e-commerce development through 2025 approved18/05/2020Revenues of business-to-consumer sales is projected to increase to US$35 billion by 2025, for accounting for 10% of Viet Nam’s total retail sales of goods and services.
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