Catalyst for business

The impact of the Covid-19 pandemic has proven that e-commerce is vital for businesses to develop and gain market share. Digital transformation creates opportunities for businesses to not only join new supply chains, replacing traditional supply chains interrupted by the pandemic, but also expand and diversify their international market.

According to Deputy Minister of Industry and Trade Cao Quoc Hung, converting from traditional business to digital platforms is becoming increasingly popular, providing an effective solution for businesses to penetrate and expand export markets in the context of Vietnam’s international economic integration.

The general director of the Vietnam E-Commerce and Digital Economy Agency under the Ministry of Industry and Trade, Dang Hoang Hai, said that according to the Vietnam E-Commerce White Book and the Vietnam E-Business Index Report 2019, many Vietnamese enterprises have applied e-commerce to support import and export in business-to-business (B2B) and business-to-consumer (B2C) models.

With the great progress of information technology, all businesses, especially small and medium enterprises (SMEs), can directly access domestic and foreign consumers. Opportunities are equal, but success differs between countries and businesses in each country. The success story of online exports (B2B) on the Alibaba platform or the cross-border online retail (B2C) on Amazon provides lessons for Vietnamese enterprises.

Opportunity for small business

According to Vu Tien Loc, Chair of the Vietnam Chamber of Commerce and Industry (VCCI), developing and participating in e-commerce platforms at a higher level is digitizing cross-border e-commerce activities, and is a great revolution in international business activities. Thanks to the digitalized e-commerce platforms, micro, small and medium enterprises have an opportunity to reach the world market on an increasingly equal footing with large enterprises in the global trade.

From the perspective of Phuc Sinh Group, a pioneer digital transformation company in the agricultural sector, digital transformation also means daring to apply new technology, change the governance and business models, and technology innovation, says Board Chair Phan Minh Thong. On the other hand, whether digital transformation is successful or not depends largely on the company leadership.

According to Tran Xuan Thuy, director of Amazon Global Selling Vietnam, the company is actively supporting businesses around the globe, including Vietnamese ones, especially small and medium enterprises. They are creating an ecosystem that helps businesses, especially craft villages and households to easily connect. With Amazon’s support, these units can do business fairly, bringing Vietnamese products to the world.

According to the master plan for national e-commerce development for the 2021-2025 period approved by the Prime Minister in May 2020, e-commerce is clearly identified as one of the pioneering fields of the digital economy, helping businesses improve competitiveness. The plan calls for a 25 percent annual increase in the revenues of B2C sales for both online consumer goods by 2025, reaching US$35 billion, accounting for 10 percent of Vietnam’s total retail sales of goods and services.

To realize this goal, the Government has determined that companies are the core force in e-commerce application, while the state plays the role of managing and setting up infrastructure and creating an environment for e-commerce development. The development of e-commerce and the digital economy is implemented according to a centralized, key selection and support model.