"Three-legged tripod" for Vietnamese goods to take part in global through e-commerce

VCN - Mr. Gijae Seong, Managing Director of Amazon Global Selling Vietnam shares about the changes in the cross-border e-commerce industry in Vietnam and efforts to promote the success of Vietnamese products and brands when participating in the global e-commerce supply chain.
Vietnam's economy in 2024: positive prospects Vietnam's economy in 2024: positive prospects
Sustainable supply chains to help reinforce foothold of Vietnamese goods Sustainable supply chains to help reinforce foothold of Vietnamese goods
Vietnamese goods are becoming more and more Vietnamese goods are becoming more and more "qualified"!
https://haiquanonline.com.vn/kieng-3-chan-de-hang-viet-buoc-ra-toan-cau-qua-thuong-mai-dien-tu-186833.html

With many brands from other countries also participating in global sales and exporting via e-commerce on Amazon, what are the challenges for Vietnamese businesses, Sir?

According to our observations, in recent times, Vietnamese businesses and sellers on Amazon have divided into two main groups. These two groups face different challenges.

The first is online sellers - the community of sellers who have done business online, have digital skills, and sell in the digital environment. This group often catches up trends very quickly, they almost immediately catch up with the latest trends in e-commerce sales. However, they need to have a long-term vision and need to build a serious, long-term cross-border e-commerce business plan along with branding efforts. Previously, they only sold products, calculating profits on each product sold, but did not build a roadmap or long-term business plan, increasing brand power to increase product value. The online seller community also lacks the ability to create products.

The second group are traditional manufacturers or brand owners. This group has production capacity, but does not know how to brand in the online environment. They often have more experience building brands in the domestic environment, through traditional methods. However, when entering the online environment and penetrating international markets such as the US and Europe, the way of branding must be different. In addition, although they know they need a brand story, businesses of this group do not know how to take advantage of tools and solutions from Amazon to protect their brands, build promotions, and plan on finding market needs systematically and long-term.

What is the advantage of the product portfolio from Vietnam compared to other countries?

Vietnam's production and export strength over the past many years on the cross-border e-commerce playground is most notably wood-related products, with two main groups: houses and kitchens. According to observations, after a period of operation and optimization of logistics problems, sellers in the wood and furniture segment began to expand their product portfolio. Recently, there has been a trend of shifting from interior products to larger-sized exterior products.

Besides, there are products using Vietnamese natural, local ingredients. Widely applied in 2 product categories: consumer products (herbal tea, coffee, dried fruit...) and beauty and health care products.

It can be said that the potential for these industries is huge and Vietnam has many advantages to compete well in the international market. It should be noted that the advantage of natural materials is not the only factor that determines the success of businesses. For Vietnam to go to global through cross-border e-commerce, it needs a "three-legged tripod". The first is production capacity, based on the advantages of local products and raw materials. The second is to combine and be alive to online skills to operate businesses in the e-commerce environment. Third is branding - if businesses only rely on the product without a brand story to create a difference, after a very short time, the product and brand will be easily imitated or counterfeited.

At this time, when selling on Amazon, is price competition an advantage?

Reasonable and attractive prices for customers are always thing which Amazon wants to bring to customers. However, for businesses and exports, there are more efforts to create a competitive element.

Normally, price competition often appears in businesses or sellers, and new products, when entering the market, they often set low prices to have customers and have good reviews for products on the store. As for experienced businesses, price is not a competitive factor, but is often branding. Because when liking a certain brand, users will be willing to pay a higher price to buy the products, or will also buy based on the reviews of other consumers. If the review is good, they will have trust and be willing to spend more money to buy the same products.

Price competition is also a factor, but not the only and most powerful factor to determine success for businesses, but there are other factors in how to grasp market demand to improve products, how to build brand value for their products, how consumers not only buy the product but also buy the brand. These are the factors that can contribute to the success of the businesses.

He mentioned a lot about branding elements in the online environment. So, please tell us what is the level of brand registration of Vietnamese businesses on Amazon?

In the past 5 years, the number of Vietnamese businesses participating in Amazon's Brand Registry program has increased 35 times. This shows the seriousness of businesses in the story of online export through Amazon. It is not just a story of selling products, operations, or how to optimize revenue, but also a story of building a brand for sustainable development.

Registering for the Amazon Brand Registry program, businesses will have to register trademarks in target markets, use recognized trademarks in these markets, and update them on the Amazon system. Amazon will conduct verification and allow these businesses to register their brands on Amazon. Once registration is completed, the brand will be protected and can use branding tools on Amazon stores.

Building and developing a brand is an important step, and there needs to be a roadmap to develop the brand in a sustainable way. This is our effort in recent years to help Vietnamese businesses understand the story of branding and use technology tools, and advanced solutions from Amazon to develop an effective and long-term branding strategy.

Thank Sir!

By Ngoc Linh/ Binh Minh

Related News

Corporate culture "lighting the way" for sustainable development

Corporate culture "lighting the way" for sustainable development

VCN - The government aims to cultivate and develop numerous business leaders capable of heading strong economic conglomerates by 2030, leveraging their roles to lead and pave the way. To achieve this goal, financial strength alone is not enough; a robust foundation in business culture is essential.
The fast-moving consumer goods industry aims for green and sustainable development

The fast-moving consumer goods industry aims for green and sustainable development

VCN - Vietnam's consumer goods industry currently has the fastest growth rate in the ASEAN region. However, for sustainable development in the future, businesses in the fast-moving consumer goods industry need to aim for green consumption.
VAT reform promotes sustainable development of the agricultural sector

VAT reform promotes sustainable development of the agricultural sector

VCN - In the revised Draft Law on Value Added Tax (VAT), the conversion of fertilizers and specialized machinery and equipment serving agricultural production to applying 5% VAT since it belongs to the group of subjects not subject to tax according to current law, it is a content that receives attention from the business community, especially fertilizer production enterprises. According to experts and businesses, converting this item to a taxable object will have a huge impact on agricultural production.
E-commerce: The door to bring Vietnamese goods to the world

E-commerce: The door to bring Vietnamese goods to the world

VCN - Cross-border e-commerce is one of the important pillars on the journey to promote Vietnam's export potential. On the Amazon e-commerce platform alone, Vietnamese businesses have expanded their international business scope with the number of products exported and sold on Amazon increasing by 300% in the past 5 years.

Latest News

PM asks for all efforts to ensure sufficient supply of electricity, petroleum products

PM asks for all efforts to ensure sufficient supply of electricity, petroleum products

Prime Minister Phạm Minh Chính asked relevant agencies and authorities to ensure sufficient supply of electricity and petroleum products in all situations.
Ministries asked to review and revise policies on infrastructure development

Ministries asked to review and revise policies on infrastructure development

A plan outlines key tasks and solutions to develop a modern and synchronous infrastructure system with focus, priority on key areas, and advanced steps ahead.
Vietnam

Vietnam's GDP in 2024 could achieve nearly 7% growth

VCN - According to Nguyen Anh Duong, Head of the General Research Department at the Central Institute for Economic Management (CIEM), Vietnam achieved significant socio-economic results in the first half of the year. Based on these outcomes, CIEM has developed two macroeconomic forecast scenarios for 2024.
Foreign diplomats hail late Party chief’s role in Vietnam’s modern history

Foreign diplomats hail late Party chief’s role in Vietnam’s modern history

Party General Secretary Nguyen Phu Trong holds an enormous role in the development and achievements of Vietnam, in terms of both domestic and external affairs, said foreign diplomats who used to work in the country.

More News

Highest determination to remove IUU "yellow card".

Highest determination to remove IUU "yellow card".

VCN - The 5th inspection of the European Commission (EC) is expected in October 2024, which is the decisive time for Vietnam to remove the "Yellow Card" warning in 2024. This is considered an important and urgent and important task because the EU is in the top 5 largest export markets of Vietnamese seafood, after the US and China.
Party General Secretary Nguyen Phu Trong passes away

Party General Secretary Nguyen Phu Trong passes away

General Secretary of the Communist Party of Vietnam Central Committee Nguyen Phu Trong passed away on July 19 afternoon at the age of 80, according to the board of health protection and care for central officials.
The trend of GDP acceleration is increasingly clear

The trend of GDP acceleration is increasingly clear

VCN - In the context of a world economic recovery trend, our country's economic growth in the first six months of 2024 continues to prosper with an increase of 6.42%. This result is higher than the upper target growth rate set in Resolution 01/NQ-CP of the Government, and is considered a positive sign for the growth target for the whole year 2024.
The new Land law 2024 expected to boost foreign investment

The new Land law 2024 expected to boost foreign investment

VCN - With the new features and improvements in the Land Law 2024 for investors, Vietnam expects to welcome a new wave of foreign direct investment (FDI), especially for large projects.
PM calls for all-people, comprehensive digital transformation

PM calls for all-people, comprehensive digital transformation

Prime Minister Pham Minh Chinh on July 19 called for the all-people and comprehensive digital transformation, with the engagement of the whole political system, people and enterprises in the development of digital infrastructure, completion of the digital institutions and human resources training, so that Vietnam can catch up with and be on par with other nations amidst global headwinds.
Statement of the Ministry of Foreign Affairs on Vietnam submission on the limits of the extended continental shelf beyond 200 nautical miles in respec

Statement of the Ministry of Foreign Affairs on Vietnam submission on the limits of the extended continental shelf beyond 200 nautical miles in respec

Vietnam presented to the United Nations Commission on the Limits of the Continental Shelf (CLCS) its Submission on the Limits of the Extended Continental Shelf in respect of the Central Area of the East Sea (South China Sea) (VNM-C) at the UN headquarters in New York on July 17 morning (local time).
Vietnam’s e-commerce market grows fastest in SEA

Vietnam’s e-commerce market grows fastest in SEA

Vietnam, along with Thailand, are the two fastest growing e-commerce markets in Southeast Asia, according to the recently released report '2024 E-commerce in Southeast Asia' by Momentum Works.
Deputy PM urges implementation of 1 million hectare of high-quality rice project

Deputy PM urges implementation of 1 million hectare of high-quality rice project

Deputy Prime Minister Tran Luu Quang on July 17 requested the acceleration of the implementation of a project to develop 1 million hectares of specialised rice cultivation with high quality and low emissions associated with green growth in the Mekong Delta region from now to 2030.
Việt Nam targets full mobile broadband coverage on highways, industrial zones by 2025

Việt Nam targets full mobile broadband coverage on highways, industrial zones by 2025

By 2025, Việt Nam aims to achieve 100 per cent mobile broadband coverage on all national highways, expressways and railways under a plan to enhance the quality of the country’s mobile telecommunications network, approved by the Ministry of Information and Communications (MIC).
Read More

Your care

Latest Most read
PM asks for all efforts to ensure sufficient supply of electricity, petroleum products

PM asks for all efforts to ensure sufficient supply of electricity, petroleum products

Prime Minister Phạm Minh Chính asked relevant agencies and authorities to ensure sufficient supply of electricity and petroleum products in all situations.
Ministries asked to review and revise policies on infrastructure development

Ministries asked to review and revise policies on infrastructure development

A plan outlines key tasks and solutions to develop a modern and synchronous infrastructure system with focus, priority on key areas, and advanced steps ahead.
Vietnam

Vietnam's GDP in 2024 could achieve nearly 7% growth

According to Nguyen Anh Duong, Head of the General Research Department at the Central Institute for Economic Management (CIEM), Vietnam achieved significant socio-economic results in the first half of 2024
Foreign diplomats hail late Party chief’s role in Vietnam’s modern history

Foreign diplomats hail late Party chief’s role in Vietnam’s modern history

Party General Secretary Nguyen Phu Trong holds an enormous role in the development and achievements of Vietnam, in terms of both domestic and external affairs, said foreign diplomats who used to work in the country.
Highest determination to remove IUU "yellow card".

Highest determination to remove IUU "yellow card".

VCN - Assessing the effects of the EC "yellow card" on Vietnamese fisheries, Mr. Tran Dinh Luan, Director of the Department of Fisheries (Ministry of Agriculture and Rural Development) said that since the EC warned of the yellow card for Vietnam's exploit
Mobile Version