Local businesses losing out on array of online export opportunities

This information was released during a seminar discussing export promotion activities
via the Amazon e-commerce channel in Hanoi on March 3.

During the discussion, Tran Xuan Thuy, Director of Amazon Global Selling Vietnam, said that the trend of online shopping has presented both an array of opportunities and challenges for inpiduals and businesses who are participating in the realm.

Thuy pointed out that global retail trade remains consistent and is growing strongly at a rate of 6 per cent with total retail sales reaching US$28 trillion whilst e-commerce sales account for approximately 13 per cent.

Despite this, the growth rate of e-commerce saw a six-fold increase in comparison with traditional sales activities, whilst cross-border e-commerce activities are becoming increasingly prevalent.

Due to this increasing trend, e-commerce sales are predicted to reach US$1,000 billion during the course of the year, which will serve to create opportunities to change the shopping habits of global consumers whilst presenting numerous chances for business expansion, Thuy noted.

Nguyen Thi Minh Thuy, Director of Information Technology and E-commerce Promotion Department under the MoIT, pointed out that the biggest challenge facing domestic firms and inpiduals, especially SMEs when joining e-commerce, is a limited pool of human resources coupled with a lack of foreign language skills.

These inadequacies have caused a number of businesses to miss out on opportunities regarding strengthening global trade exchange and developing their respective business brands, she added.

Thuy emphasised that firms still have limitations in terms of their financial potential, production capacity, the supply capacity of products, and management quality, especially a lack of foreign language ability as the nation engages in new-generation trade agreements.

As part of activities under the framework of a co-operation program between Amazon Global Selling Group and the Department of Trade Promotion for the year ahead, the seminar has contributed to devising orientations aimed at supporting the export capacity of enterprises in the "virtual market".

Nguyen Phuong Hanh from Vinalink Logistics said that firms need training programs which are suitable to help meet practical demand, while relevant agencies must work to promote these activities, especially within the context of new-generation trade agreements that set forth a number of provisions in terms of e-commerce exports.

Hanh pointed out inadequacies in marketing activities of Vietnamese enterprises, hoping that there will be more seminars in the future to provide consultancy for businesses in the field.

The seminar, hosted by the Department of Trade Promotion under the Ministry of Industry and Trade (MoIT), with numerous representatives from Amazon Vietnam, associations, inpiduals, and small and medium-sized enterprises (SMEs) in attendance.