By 2027, cross-border e-commerce is projected to rank fifth among Vietnam’s exports, with a value of US$12 billion, according to Amazon, the U.S. e-commerce giant.
The “2023 Performance Report: Empowering Small and Medium-sized Enterprises in Vietnam,” released by Amazon Global Selling Vietnam, a unit supporting sellers, suggests that by 2027, cross-border e-commerce exports could range from $5 billion in a “normal” scenario to $12 billion in the best-case scenario with government support for small, medium, and micro-sized businesses.
In the latter scenario, cross-border e-commerce would become the country’s fifth-largest export category.
Amazon Global Selling highlights the potential for online exports of Vietnamese goods, as more global consumers transition from offline to online shopping.
Vietnam’s exports totaled nearly $356 billion last year, according to the General Statistics Office.
Top export items, each surpassing $20 billion, include electronics (computers, phones, and components), machinery, textiles, and agriculture, forestry, and fisheries products.
Vietnamese retailers sold over 17 million products on Amazon last year, marking a 50% increase from 2022. The number of sellers rose by 40%, with a 70% increase in those generating revenues exceeding $100,000.
The top five product categories were household appliances, kitchen tools, health and personal care products, clothing, and beauty products, reflecting Vietnam’s expertise in manufacturing and exporting items such as furniture, home decor, and apparel.
“The growth of emerging sectors like health and personal care and beauty products contributes to the increasing diversity of Vietnam’s online exports,” the report states.
Southeast Asia and China were the primary export markets, according to a study by technology advisory firm Access Partnership.
Over the next five years, the U.S. and Europe are expected to become priority markets, as consumers in these regions increasingly favor Vietnamese goods on online platforms, the study suggests.
“E-commerce represents one of the next major trends for businesses seeking global expansion,” remarked Gijae Seong, head of Amazon Global Selling Vietnam.
The challenge for these businesses lies in swiftly capitalizing on this trend, understanding global consumer demands, and formulating long-term development strategies, he noted.
Access Partnership highlights challenges faced by Vietnamese businesses in online transactions, such as high customs duties and post-clearance costs.
