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COVER STORY

ccording to eCommerceDB, Viet-
nam’s e-commerce market ranks
A 25th globally, with revenue of $8
billion in 2021, contributing to worldwide
growth of 29 per cent in 2021. Vietnamese
e-commerce businesses are accessing many
transformation opportunities due to the
rapid development of technology, markets,
and consumers, and the participation of
large investors. The outstanding feature
of the e-commerce market is the connection
between businesses and consumers, which
in turn helps Vietnam’s e-commerce market Mr. Nguyen Dac Tinh,
expand into other fields. Components of CEO, Asia MarTech Group
the e-commerce ecosystem, such as
providers of e-commerce infrastructure
and e-commerce platforms, also offer serv- e-commerce services. The second is that In my opinion, Vietnam’s e-commerce
ices to develop trade systems, to develop businesses still face many difficulties in sector this year will see a further break-
Vietnam’s e-commerce market. investment budgets for data security tech- through, with a forecasted 57.6 million
The country’s e-commerce market is also nology infrastructure. The third is that lim- e-commerce consumers, and will also
being strongly invested in and developed by itations in infrastructure, facilities, and tech- expand to other fields. The online shop-
the Vietnamese Government, such as building nology access in rural areas create many ping experience will be more invested
a system of management agencies from the significant differences compared with urban by brands with support from marketing
central to local levels, such as the Vietnam E- areas, and logistics infrastructure has not technologies, data technology, and pay-
commerce Association (VECOM) and the Viet- kept pace with the rapid development of e- ment technology, such as the subscrip-
nam E-commerce and Digital Economy Agency commerce. The fourth is that cash-on-deliv- tion box model, which is a new e-com-
(iDEA), etc., in order to manage and improve ery (COD), which accounts for 60 per cent merce business model in Vietnam. More-
issues relating to tax, security, information ver- of all transactions in the market, can expose over, e-commerce solutions will be more
ification, and intellectual property rights, etc. businesses to certain risks in order processing. closely linked through technical con-
However, Vietnam’s e-commerce market The fifth is that there is still no close con- nection mechanisms in order to create
is still facing a number of challenges. The nection between the components of Viet- seamless solution groups for e-commerce
first is consumer trust, which includes nam’s e-ecosystem to bring about unified businesses to apply and develop their
issues relating to product quality and certain and synchronous e-commerce solutions. business activities. %

witnessed the great bounce back of enable more Vietnamese SMEs to accelerate
Vietnam’s economy and exports thanks their recovery and even post sustainable
I partly to e-commerce and digital power. growth. Vietnam is also a member of many
Despite great difficulties and setbacks, some free trade agreements (FTAs), and these
sectors in Vietnam posted remarkable export will be crucial for its SMEs in the long run.
figures, such as agriculture and food and Moreover, thanks to FTAs and globalization
beverages (F&B). Looking at the positives, efforts, local businesses can access more
I believe that global e-commerce can do so opportunities to lower the threshold for
much more to help Vietnamese small and exporting to new markets. All of these could
medium-sized enterprises (SMEs) level up not have happened without continuous sup-
their production scale, explore the inter- port from the Vietnamese Government.
national market, increase export volumes, Alibaba.com has received enthusiastic
create more jobs, train more e-commerce- support from government and non-govern-
savvy workers, and have a positive impact ment organizations and associations in pro-
on the country’s economy. moting and organizing activities to support
Vietnam has been gaining a strong rep- Vietnamese businesses to gain more skills
utation among global buyers for its manu- and knowledge about exports and interna-
facturing capabilities, high quality products, Mr. Roger Lou, tional e-commerce, thereby contributing to
competitive pricing, and focus on exports. Country Manager, Alibaba.com Vietnam building a sustainable business foundation.
If one thing lasts from the pandemic, it will The joint activities of the parties have so far
be the power of e-commerce and online been widely reported by official media. With
B2B trade. E-commerce has made cross- 110 per cent. Among all categories, agriculture the continued support of the Vietnamese
border trade more accessible than ever. Dur- and F&B products were always at the top Government and all of our local partners in
ing the pandemic, the traditional B2B buyer’s with the most active vendors and had 24 Vietnam, we are strongly confident that we
behavior quickly changed from offline sourc- per cent of accounts on Alibaba.com Vietnam. will continue to help Vietnamese SMEs ride
ing to online. From September 2019 to Sep- More businesses have felt the need for the wave of uncertainty to a more prosperous
tember 2020, active buyers on Alibaba.com sustainable business models this year. We 2022. And we’ll continually demonstrate
increased 84 per cent and the gross mer- believe that global trade through B2B e- our long-term commitment and significant
chandise value (GMV) increased more than commerce can provide opportunities and investment here. %

www.en.vneconomy.vn JUNE 2022 | VIETNAM ECONOMIC TIMES | 23