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Oct 17, 2017 / 08:20

High potential for online export in through e-commerce

According to economic experts, as of the end of September, total export value is 154 billion USD. However, only 1% of export enterprise can explore the global e-business platform to facilitate trade.

As such, almost all export enterprises are depended on traditional export channels or just exploring global e-business platform at a basic level such as website, email. According to the Vietnam – Ecommerce and Digital Economy Agency of the Ministry of Industry & Trade, for online expert, Vietnamese enterprises have two main channels. Firstly, to find international partners through e-commerce’s market. Secondly, through these channels to directly sell products and goods to customers overseas. However, online export is not a favorite option as enterprises do not have the necessary skill sets to sell products online to customers. 


Meanwhile, Vietnam has nearly 50 million internet users, contributing to 53% of the population, and is higher than the world average number of 46.6%. This is a significant number for online businesses, in which opens a new door for online export. According to the E-commerce indexes 2017 report, online transaction will bring numerous benefits to export enterprises. As such, enterprises can save time from 15 – 30%, or even 90% compared to the traditional ways; at the same time, they can save personnel and cost, reduce risks, increase transparent on the procedures and improve the capabilities on digitization. On the other hand, with traditional transactions, in addition to a long list of procedures, enterprises have to go to places to connect and find customers, or even to travel abroad to attend international trade fairs. However, through the online channel, enterprises can just stay at one place and make transaction with customers. Despite only join the online export for one year, but many companies have gain a large number of customers, with an average of 5 – 10 customers per day.

Director of Alibaba in Vietnam market Tran Xuan Thuy said, e-commerce, including online export, is an essential business channel due to its efficiency and easily to connect seller and buyer. With this being said, Trung Nguyen or Kangaroo are companies with high financial capabilities, and are our long term customers. They have gained considerably new markets thanks to e-commerce. Instead of the sale departments have to go directly to one market, now all they have to do is through e-commerce. In exploring new markets, finding new buyers, big enterprises have big advantages. They have sufficient budget to open representative office, attending trade fairs, or facilitating trade in new potential markets. On the opposite way, small and even medium enterprises are facing difficulties in these aspects. 
 
Representatives and guest speakers at the APEC workshop facilitating market access for women-led MSMEs through E-commerce.
Representatives and guest speakers at the APEC workshop facilitating market access for women-led MSMEs through E-commerce.
According to Alibaba in Vietnam, e-commerce on the platform of business to business (B2B) will solve all the issues mentioned above for small and medium enterprises (SME). Enterprises will not have to spend money taking part in exhibitions or trade fairs; narrowing the space and distance through e-commerce to make transaction with partners and customers. E-commerce do not have the restriction on whether an enterprise is big or small, so that there will be opportunities for every one involved in e-commerce. 
 
Recently, in sidelines of the 2017 Asian – Pacific Economic Cooperation (APEC), the Ministry of Industry & Trade and APEC Secretariat have jointly held the APEC workshop facilitating market access for women-led micro, small and medium enterprises (MSMEs) through E-commerce from October 4 – 5 in Hanoi. At present, women-led MSMEs are facing difficulties with regard to treatment of gender inequality in man – dominated business environment. However, the presence of e-commerce will helps to women-led MSMEs to solves these mentioned issues, expanding business network and participate in the global value chains. 

In recent times, APEC’s economic members are committed to facilitate the participation of women in business, with a view for economic development. Many countries, including Vietnam have implemented supporting programs for women-led MSMEs in e-commerce, which shows the importance of e-commerce in digital economy, as well as the close relationship between e-commerce and overall growth.