The way for Vietnamese goods in the e-commerce race

VCN - The strong development of e-commerce systems, logistics, and the influx of foreign goods has caused domestic retail businesses to face challenges in terms of price and service speed.
Vietnamese enterprises facing challenges from cross-border e-commerce platforms Vietnamese enterprises facing challenges from cross-border e-commerce platforms
Preventing e-invoice fraud amid e-commerce boom Preventing e-invoice fraud amid e-commerce boom
PM orders strengthened state management over e-commerce PM orders strengthened state management over e-commerce
The way for Vietnamese goods in the e-commerce race
Livestream selling "OCOP Market" on the TikTok Shop e-commerce platform. Photo: Provided by DN

High competitive pressure

Google statistics show that Vietnam's e-commerce grew by about 18% last year. In the third quarter of 2024, the platforms also recorded growth of about 18%. However, to succeed on e-commerce platforms, Vietnamese goods have had to face many challenges.

Speaking at the recent workshop "Supporting Vietnamese goods on e-commerce platforms", Mr. Nguyen Ngoc Dung, Chairman of the Vietnam E-commerce Association (VECOM), said that to successfully bring Vietnamese goods to e-commerce platforms, a big challenge is the issue of funding.

In particular, the entry of cross-border e-commerce platforms such as Temu, Shein, Taobao… with competitive advantages in price, design and shipping increases the competitive pressure on domestic enterprises. For example, the story of the e-commerce platform Temu is dominating. They have succeeded in conquering the large Chinese market and from there continue to promote goods to other countries, including Vietnam.

When entering Vietnam, Temu spent a lot of money on advertising on all platforms, which made people curious and made them order products. Therefore, this e-commerce platform quickly had users, although it is not certain that the prices of products on this platform are cheaper and of better quality than domestic products, Mr. Dung said.

Mr. Truong Gia Bao, Vice President of the Vietnam Advertising Association, said that users are spending more hours online, so advertising budgets are also following this trend. Advertising spending in the Vietnamese advertising market is expected to reach USD 2,763 million by 2024. With the current growing digital trend, it is expected that by 2029, up to 60% of total advertising spending will come from digital sources.

However, currently, advertising budgets mainly come from foreign businesses, with "huge" amounts of money, proactive approaches and domination of the domestic online market, and the phenomenon of transferring revenue across borders. Meanwhile, Vietnamese businesses have not focused on their marketing strategies. Businesses are also not proactive in technology, mostly through intermediaries, so costs are increased and it is difficult to capture customer data.

Especially the problem of logistics and delivery is a big barrier for Vietnamese businesses, causing businesses to lose right at home.

The keyword of Vietnamese e-commerce is "logistics"

Mr. Nguyen Thanh Trung, Director of Logistics Technology Solutions Company Limited (LTS) said that logistics is still a weakness that makes it difficult for Vietnamese businesses to compete, not only with foreign rivals but also in the domestic market.

Chinese enterprises have effectively taken advantage of Vietnamese consumption trends to build warehouses close to the border while optimizing the supply chain by concentrating goods at locations near the largest consumption areas. Thanks to that, delivery speed is significantly shortened, creating an outstanding competitive advantage. Especially in the Ho Chi Minh City market, there is outstanding potential to become a regional logistics center. According to the current project, Ho Chi Minh City plans to build 8 logistics centers, thereby shortening the time to transport goods in the region.

On the other hand, according to Mr. Truong Gia Bao, Vietnam currently has bonded warehouses for foreign parties to enter the domestic market, but we do not have bonded warehouses for export goods abroad to increase competitiveness in cross-border e-commerce activities. While the domestic market is quite easily invaded by cheap, low-quality goods to mid-range goods, even high-end goods are easily invaded by foreign units.

For example, Temu - a new player and Chinese e-commerce giant is entering Vietnam with a large volume of goods, taken from factories and sold directly to Vietnamese consumers through bonded warehouses located at the border, now even in the heart of Ho Chi Minh City. There are bonded warehouses where goods can be deposited for up to 6 months and then renewed once, meaning the goods stay there for a whole year. This makes it difficult for Vietnamese businesses to compete in terms of delivery speed and price.

According to experts, speed and cost are two key factors in the logistics sector. Although domestic enterprises have met domestic demand well, to expand regionally and internationally, they need to improve their operating processes and apply technology. Therefore, Vietnam needs to build more closely linked logistics systems. This will not only support domestic e-commerce but also help Vietnamese goods access international markets quickly and effectively.

In addition, Vietnamese logistics enterprises need to change their management thinking and increase investment in technology. Applying modern logistics models, inspired by large e-commerce corporations, will be a feasible direction for Vietnam to compete with regional logistics centers. Current Vietnamese enterprises can provide good domestic services, but still need breakthroughs to become a regional logistics center.

By Thu Diu/Bui Diep

Related News

Challenges in preventing counterfeit goods and intellectual property violations in e-commerce

Challenges in preventing counterfeit goods and intellectual property violations in e-commerce

VCN - The open sale of counterfeit goods, items with unclear origins, and intellectual property (IP) infringing products on e-commerce websites has become a growing trend.
Vietnam-China e-commerce: A perspective from Lang Son border

Vietnam-China e-commerce: A perspective from Lang Son border

VCN - Cross-border e-commerce is currently a hot topic among e-commerce businesses, particularly those actively developing digital platforms and cross-border electronic payment infrastructures through border gates in Lang Son province.
Opportunities for export breakthroughs through e-commerce

Opportunities for export breakthroughs through e-commerce

VCN - According to Mr. Nguyen Van Thanh (in photo), Director of the E-commerce Development Center - Department of E-commerce and Digital Economy (Ministry of Industry and Trade), developing national e-commerce programs and fostering international cooperation are key to effectively harnessing Vietnam's potential in this area, thereby enhancing competitiveness and promoting sustainable development in the global market.
Customs tightens oversight on e-commerce imports

Customs tightens oversight on e-commerce imports

VCN - The General Department of Vietnam Customs has issued new directives to enhance the management of imported goods transacted through e-commerce platforms, addressing ambiguities and ensuring consistent enforcement across provincial and municipal customs departments.

Latest News

Promoting Vietnam - Poland trade through new maritime routes

Promoting Vietnam - Poland trade through new maritime routes

VCN - Vietnam-Poland trade and investment cooperation is expected to develop strongly in the coming time thanks to new maritime connections among the two countries that are about to be launched.
Total import-export turnover reaches US$715.55 billion in 11 months

Total import-export turnover reaches US$715.55 billion in 11 months

VCN - In November, total import-export turnover amounted to US$66.4 billion, down 4.1% compared to the previous month but up 9.0% compared to the same period last year.
MoIT sets export growth at 6% in 2025

MoIT sets export growth at 6% in 2025

The recovery of major markets such as the US and EU will be an important driving force for exports, especially in electronics, consumer goods and textiles, the MoIT said.
Vietnam's first logistics park opens in Lang Son

Vietnam's first logistics park opens in Lang Son

The Viettel Lang Son Logistics Park, the first of its kind in Vietnam, officially opened in Cao Loc district, the northern mountainous province of Lang Son, on December 11.

More News

Vietnam’s coffee exports possibly top 5 billion USD for first time

Vietnam’s coffee exports possibly top 5 billion USD for first time

Coffee prices have increased by over 50% on average this year, enabling the export revenue to potentially surpass 5 billion USD for the first time.
Support aggregate demand to promote economic growth

Support aggregate demand to promote economic growth

VCN - Financial policy, especially fiscal policy, has played an important role in promoting aggregate demand to contribute to economic development. In the current context, when the economy is entering the final year of the 2021-2025 terms with many difficulties and challenges, it is necessary to have solutions to promote production and business, supporting economic development.
Plastics demand growing, says industry association

Plastics demand growing, says industry association

The plastics industry has enjoyed impressive growth this year, driven by steady demand from the construction, packaging and consumer industries, according to the Vietnam Plastics Association.
Vietnam’s tuna exports gain larger market shares in key markets

Vietnam’s tuna exports gain larger market shares in key markets

After overcoming challenges related to tuna size regulations and market volatility, Vietnam’s tuna exports are recovering and expanding in key markets.
Efficiency in emission reduction and sustainable development for wood enterprises

Efficiency in emission reduction and sustainable development for wood enterprises

VCN - Digital transformation aimed at reducing emissions and fostering sustainable development has become an intrinsic need for businesses. This shift stems from recognizing the tangible benefits demonstrated by pioneering enterprises that have successfully implemented and achieved these initiatives.
US emerges as biggest consumer of Vietnam’s pepper

US emerges as biggest consumer of Vietnam’s pepper

Vietnam exported 235,335 tonnes of pepper, including 207,498 tonnes of black pepper and 27,837 tonnes of white pepper, in January - November to earn 1.22 billion USD, with the US being the biggest importer, according to the Vietnam Pepper and Spice Association (VPSA).
Why are seafood exports to some Middle Eastern countries blocked?

Why are seafood exports to some Middle Eastern countries blocked?

VCN - Many seafood export shipments to some Middle Eastern countries have had their documents returned by the Consular Department due to the nightmare of consular legalization procedures, leading to a blockage in exports to these markets.
Seafood exports increase competitiveness through quality

Seafood exports increase competitiveness through quality

VCN - The "wave" of orders from a number of large markets and increased consumption demand in the coming months will be the driving force to accelerate seafood exports at the end of the year. Not only racing to increase exports, Vietnamese seafood also increases its competitive advantage by focusing on product quality, seed sources, green transformation in the production process...
Textiles, footwear enterprises need support to green the supply chain

Textiles, footwear enterprises need support to green the supply chain

VCN- As one of the world's leading textile, garment and footwear exporting countries, Vietnam is facing many opportunities as well as challenges in response to strict customer regulations in "greening" production, including a number of commitments such as implementing social and environmental responsibilities and reducing emissions...
Read More

Your care

Latest Most read
Promoting Vietnam - Poland trade through new maritime routes

Promoting Vietnam - Poland trade through new maritime routes

Vietnam-Poland trade and investment cooperation is expected to develop strongly in the coming time thanks to new maritime connections among the two countries that are about to be launched.
Total import-export turnover reaches US$715.55 billion in 11 months

Total import-export turnover reaches US$715.55 billion in 11 months

VCN - According to data from the General Statistics Office, the total import-export turnover for the first 11 months of 2024 reached US$715.55 billion, an increase of 15.4% compared to the same period last year.
MoIT sets export growth at 6% in 2025

MoIT sets export growth at 6% in 2025

The recovery of major markets such as the US and EU will be an important driving force for exports, especially in electronics, consumer goods and textiles, the MoIT said.
Vietnam's first logistics park opens in Lang Son

Vietnam's first logistics park opens in Lang Son

The Viettel Lang Son Logistics Park, the first of its kind in Vietnam, officially opened in Cao Loc district, the northern mountainous province of Lang Son, on December 11.
Vietnam’s coffee exports possibly top 5 billion USD for first time

Vietnam’s coffee exports possibly top 5 billion USD for first time

Coffee prices have increased by over 50% on average this year, enabling the export revenue to potentially surpass 5 billion USD for the first time.
Mobile Version