e commerce Viettime Craft.jpg
E-commerce platforms are expected to help boost exports of these businesses (photo: Viettime Craft)

Megan Lim from Access Partnership at a workshop on developing online exports, organized by the Vietnam E-commerce Association (Vecom) on December 16, provided noteworthy statistics about Vietnam’s Micro, Small and Medium Enterprises (MSME) after a survey conducted in July 2024.

Ninety-three percent of enterprises said they cannot export products without e-commerce. Sixty-five percent said half of their B2C e-commerce revenue was from foreign markets. Fifty percent hoped they would see a 20 percent growth rate in B2C e-commerce turnover in the next five years.

China, the US and Japan are priority markets that Vietnam’s MSMEs target when exporting products via e-commerce.

However, they are facing big barriers. About 95 percent of enterprises lack high-quality workers majoring in cross-border e-commerce. And 95 percent lack understanding about import regulations via e-commerce from foreign markets. in addition, 94 percent said cross-border logistics costs were too high, and 93 percent said they lack information about foreign markets.

Meanwhile, 92 percent of enterprises commented that official teaching program on e-commerce and direct training courses can help them build suitable capability to export products via e-commerce.

Around 94 percent believed that developing an ecosystem including third parties that provide legal and logistics services will help mitigate legal barriers and logistics costs when deploying cross-border e-commerce.

And 95 percent agreed that government initiated programs supported by the private sector to implement or scale up exports through B2C e-commerce will help address business knowledge gaps.

Lim also cited several lessons that Vietnam can refer to when trying to boost exports.

In Singapore, Amazon Global Selling is cooperating with NYP-SYRP to help 800 businesses and MSMEs to scale up e-commerce business around the globe, and train in product research and marketing.

In Jiangsu (China), the provincial government has issued an action plan to promote the development of high-quality cross-border e-commerce (2023-2025), aiming to develop more than 600 leading e-commerce companies and establish more than 100 export-focused e-commerce brands.

In South Korea, the Ministry of SMEs and Startups (MSS) has allocated 16.9 billion won ($310 million) to support MSMEs in logistics costs. The government provides coupons worth up to 70 percent of logistics costs, supports order fulfillment, and discounts express shipping services through partnerships with FedEx, DHL, and UPS.

Meanwhile, Darren Ong from Amazon Southeast Asia, recommended India’s experience. The country's laws on foreign trade addresses online exports, striving for $200 billion worth of online exports by 2030.

Good news for online exporters

Exports believe that reports on cross-border e-commerce released recently are not accurate. Vietnam is now in a good position to benefit from B2C cross-border e-commerce. However, there are very few documents that estimate the scale, opportunities and barriers in B2C export via e-commerce for Vietnam.

Vu Minh Tam from the Import-Export Department said the report on Vietnam’s import-export has been published annually since 2016, but export via e-commerce is a new issue and the agency will add information about this.

Ngo Chung Khanh, Deputy Director of the Multilateral Trade Policy, said Vietnam has signed 20 FTAs (free trade agreements), including 16 FTAs ​​that have been implemented, two FTAs ​​under negotiation, and two FTAs ​​about to take effect. 

In the near future, Vietnam may sign more FTAs ​​with countries in South America, the Middle East, and Africa. Vietnam will review FTAs ​​with separate chapters on e-commerce to consider upgrading, amending, and supplementing them to suit the new situation.

Nguyen Thanh Hung from Vecom said Vietnam’s enterprises find it difficult to access clients in South America and Africa and export products to markets in the traditional manner. With e-commerce, Vietnam’s products can penetrate markets more easily.

Nguyen Thuy Anh from the Department of E-commerce and Digital Economy said the agency is drafting the national plan on e-commerce development in 2026-2030, which comprises policies to support Vietnam’s businesses to export online. 

There will be policies to encourage MSME to connect large e-commerce platforms to have more opportunities to boost exports to large markets.

Meanwhile, according to Do Huy Tho from GDC (General Department of Customs), the electronic customs data processing system for exported and imported goods transacted via e-commerce will be completed in the first quarter of 2025. Vietnam will have a database on cross-border e-commerce.

Binh Minh