• Will Amazon find 100 suppliers in Vietnam?
    VietNamNet Bridge - Amazon, the giant sales platform with 300 million buyer accounts worldwide, is seeking suppliers in Vietnam.

    After announcing a cooperation program in January 2019, the Vietnam Trade Promotion Agency (Vietrade) and Amazon will select 100 businesses in targeted industries which have products satisfying Amazon’s requirements, and put their products on Amazon’s online sale network.

    An Amazon representative said the retail giant would help small and medium enterprises (SMEs) access the world market and develop their brands on Amazon.

    Bernard Tay, director of Amazon Global Selling Southeast Asia, said Amazon can see great development potential in Vietnam, especially because of the entrepreneurial spirit of young people.

    He noted that Vietnam has advantages in household-use appliances, textiles & garments, footwear and handicraft products, which sell very well on Amazon. 

    Ngan Le, the founder and CEO of Paper Color, one of the Vietnamese businesses selling products on Amazon, said the company saves sale and marketing costs by being on Amazon. Paper Color now has products exported to 30 countries.

    However, it is unclear if Amazon can find 100 suppliers in Vietnam. To be eligible to have products sold on Amazon, Vietnam’s manufacturers will have to satisfy requirements set by retailers. 

    Meanwhile, the majority of Vietnamese businesses are small and medium sized which are reluctant to spend money to satisfy the requirements. 

    According to the General Statistics Office (GSO), 98.1 percent of Vietnam’s businesses are SMEs. Meanwhile, the World Bank  (WB) reported that 60 percent of SMEs in 2018 could not access loans from official sources. They still cannot make appropriate investments to upgrade the quality of products for both domestic consumption and exports.

    Before Amazon, Walmart also carried out a campaign to seek Vietnamese suppliers. Vinamit's fruit chips are available at Walmart China, while Trung Nguyen coffee has entered Walmart in Chile, Brazil, Mexico and China.

    Ten years ago, Walmart received the first catfish consignments from Cuu Long An Giang Import/Export JSC. Right in the first year of selling products through Walmart, the company earned $2 million after investing $1 million.

    Thuan Phuong became the first garment supplier present at Walmart network. It now provides 3-5 million products a year to the retailer and has opened two more factories in Long An province to increase productivity.

    However, Walmart met big difficulties in Vietnam as many businesses could not satisfy its requirements on goods quality. Will this happen with Amazon?

    Nguồn: VietnamNet Bridge
News new
  • Vietnam opens its mind for fintech and ride-sharing service
    Minister of Information and Communications Nguyen Manh Hung has stressed that Vietnam strongly supports the development of technologies and business models such as fintech and ride sharing app.
  • How digitalization transforms Vietnam?
    Vietnam has experienced more than two decades of connecting to the Internet and joined the race of digital transformation around the globe.
  • High-tech e-commerce, low-tech delivery
    Online shoppers want to get the goods they order sooner rather than later, requiring the involvement of logistics firms in e-commerce deals to ensure speedy deliveries.
  • Vietnam’s e-commerce to earn $10 billion by 2020
    Vietnam’s e-commerce is forecast to gross $10 billion by 2020. Significantly, e-commerce has offered more opportunities to Vietnamese enterprises even small-scale enterprises to sell commodities to any nation with meager expense.
  • Government prioritizes enterprise development, administrative reform
    More than 40 percent of Vietnamese enterprises have reported improvements in their export activities due to government reform efforts to cut administrative red tape. However, a review of the reform five years after the start of its implementation has also found that some improvements were unsustainable and were applied inconsistently.