In parallel with traditional export channels, many Vietnamese businesses have proactively built cross-border e-commerce strategies as a new way to expand their markets. However, this path requires meticulous preparation to overcome various "obstacles".
According to a report by Cognitive Market Research, the global cross-border e-commerce market is estimated to reach nearly $800 billion in 2024 and is projected to grow at an average rate of 30.50% until 2031. This presents a "gold mine" for Vietnamese businesses to exploit, if they can afford.
The primary advantage is the ability to simultaneously access an incredibly vast customer base from various markets worldwide (including emerging markets such as ASEAN, the Middle East, Russia, and Australia), said Mr. Bui Huy Hoang, Deputy Director of the Center for E-commerce Development and Digital Technology, under the Ministry of Industry and Trade's Department of E-commerce and Digital Economy. This offers a speed and scale advantage that traditional exports cannot achieve in a short period.
However, alongside the benefits it offers, cross-border e-commerce also presents numerous challenges that Vietnamese sellers and businesses need to confront.
First, the operational capacity for cross-border e-commerce among many Vietnamese businesses remains relatively limited, mainly due to insufficient investment in broad and deep resources, especially in specialized human capital.
Second, competition in the global online environment is extremely fierce, not only from domestic industry peers but also from foreign players such as Indonesia, Thailand, and China—countries that are also leveraging the advantages of cross-border e-commerce.
Third, while cross-border e-commerce helps eliminate intermediaries like importers or agents, many businesses lack a deep understanding of different operational models, which leads to an increase in operating costs.
Fourth, there are significant differences in market knowledge and legal regulations related to cross-border e-commerce in each country.
To overcome challenges and fully capitalize on opportunities, Mr. Hoang proposed several key recommendations.
First, businesses should focus on selecting products that are appropriate for each market, each consumer segment, and each target region, followed by optimizing those products accordingly.
Second, it is essential to clearly identify the specific cross-border e-commerce model (such as B2B, B2C, B2B2C, or D2C) and concentrate resources on that business area. The chosen model should align with the product type and the development capacity of each enterprise.
Third, businesses should leverage support from major e-commerce platforms and participate in training programs to improve their ability to understand and comply with legal regulations, as well as grasp consumer behavior in target markets.
Finally, to address issues related to cost, time, and lack of market knowledge, Mr. Hoang recommended a practical strategy that many businesses have successfully applied: collaborating with local partners in the target market. This approach enables faster and more effective market entry.
Google translate