The trend of online shopping presents an opportunity for Vietnamese goods to thrive in the U.S. market. Experts suggest that Vietnamese businesses need to enhance the quality of their products and adopt new sales technologies to introduce Vietnamese goods to the U.S. market through online platforms, particularly in e-commerce.

Numerous avenues for Vietnamese businesses to access the market

 According to the Ministry of Industry and Trade, as of June 2023, Vietnam ranks as the 11th largest trading partner of the U.S., with a total trade value of approximately 57.6 billion USD. Vietnamese exports to the U.S. stand at 52.8 billion USD. Vietnam maintains a trade surplus with the U.S., amounting to 47.9 billion USD, ranking third among nations with the largest trade surpluses. However, the majority of Vietnamese businesses still export to the U.S. through traditional channels, which have shown a decreasing trend, especially during and after the COVID-19 pandemic.

According to Statista data, the U.S. is a major driving force behind the global e-commerce resurgence, with total e-commerce sales reaching 1.03 trillion USD in 2022. Moreover, online shopping activities are considered a future trend in U.S. consumer behavior due to their convenience and ease of use, having become a habitual part of people’s lives. Therefore, the opportunity for online sales in this market is expected to grow, providing ample room for development. Vietnamese businesses need to seize this trend to expand exports, creating more competitive product and service channels through online platforms in addition to traditional ones for American consumers.

The Vietnam Trade Office in the U.S. states that within ASEAN countries, Vietnam accounts for about 35% of the total export turnover (ranking second only to Thailand with an export turnover of about 20 billion USD). From now until the end of the year, there may be some favorable conditions. The U.S. economy shows signs of recovery and increased consumer demand. The U.S. government and businesses continue to express strong interest in and commitment to business cooperation with Vietnam, with major retail chains resuming orders with Vietnam. In recent months, Vietnam has regained its growth momentum in exports to the U.S. These factors indicate that in the long run, Vietnam will continue to be a reliable partner of the U.S. in implementing supply chain shifting policies away from China.

Establishing a Brand on E-commerce Platforms

To access the U.S. market, Mr. Tran Dinh Toan, Representative of the E-commerce Association, Deputy General Director of OSB Investment and Technology Company, believes that many Vietnamese businesses have already utilized cross-border e-commerce opportunities, although the number is still relatively small. To gain access, businesses need to offer high-quality, competitively priced products with unique features. Businesses must also pay attention to the features of e-commerce platforms. Virtual trade and expo activities have been and are being conducted on e-commerce platforms. Buyers and sellers invite customers to visit and inspect their factories.

According to Mr. Toan, competition in the virtual environment is fierce. Buyers only have a few seconds to decide whether to stop and view or make a purchase. Therefore, businesses need to establish reputable storefronts, operate 24/7, so that buyers have options and make purchasing decisions. Businesses must standardize and digitize their storefronts, connecting them with various channels like multi-channel sales, phone calls, emails, etc. Additionally, Vietnamese businesses need to pay special attention to the green consumption trend in the European and American markets today.

Mr. Trinh Khac Toan, Director of the Northern Region, Amazon Global Selling Vietnam, mentioned that over the past four years, Amazon has collaborated with Vietnamese businesses, especially small and medium-sized enterprises, to access the European-American market. Currently, thousands of Vietnamese businesses are selling products on Amazon, exporting goods across borders through the e-commerce platform. In 2022, over 10 million products from Vietnam were sold to European-American customers, and the export value of Vietnamese businesses selling on Amazon increased by 45% in 2022.

Ms. Lai Viet Anh, Deputy Head of the E-commerce and Digital Economy Division, Ministry of Industry and Trade, believes that cross-border e-commerce is a booming trend in many countries worldwide. In Vietnam, the retail e-commerce growth rate is 20% per year, making it an emerging sector with great potential, aligning with the government’s policy of digital economic development. Currently, the growth rate of cross-border e-commerce in Vietnam is 2.3 times higher than the average growth rate of e-commerce in general. If businesses are involved in skills training, information, and support for cross-border e-commerce, it is estimated that by 2026, the export turnover through cross-border e-commerce will reach 11.1 billion USD and increase to 12.5 billion USD in 2027.

However, alongside opportunities, Vietnamese businesses also face challenges such as strict regulations on technical standards, quality of imported goods, language barriers, logistics, and human resources. On e-commerce platforms, businesses export directly to consumers, so logistics costs are a significant concern, especially for small and medium-sized enterprises, while orders are typically small-scale.

The Vietnam Trade Office in the U.S. has stated that in the near future, efforts will continue to be made to enhance the application of e-commerce, organize trade promotion events, and facilitate online trade connections to overcome the geographical distance barriers of the market. This aims to further facilitate the entry of Vietnamese goods into distribution systems in the U.S.

Read the original article in Vietnamese at The Public Security News.