During a visit to Singapore in May, a delegation from the Ministry of Industry and Trade (MoIT) presented opportunities and export potential through e-commerce between Vietnam and Singapore. They also hosted a market exploration symposium that took place at Shopee’s headquarters, which is part of Sea Limited, a unicorn tech company in Singapore. Shopee, a leading e-commerce platform in Southeast Asia and Taiwan (China), has been present in Vietnam since 2015 and is now one of the most popular online shopping platforms.

Promoting trade from Shopee headquarters

H.E. Mai Phuoc Dung, Ambassador of Vietnam to Singapore, emphasized Singapore’s role as a major strategic economic partner and the largest foreign investor in Vietnam annually. He highlighted that the role of e-commerce must be considered in trade activities, as it is a new trend with future potential.

“Singapore is a country with extensive experience and development in commerce, including e-commerce,” he told the symposium. “The potential for e-commerce links between Singaporean and Vietnamese enterprises still has much space for growth, from platform applications to investment in supporting infrastructure systems and modern machinery and equipment, joint ventures between enterprises from the two countries, cross-border payment links, goods transportation, logistics, and customs.”

“Through Shopee, besides bringing the benefits of digital inclusion and participation in the digital economy to millions of buyers and sellers in Vietnam, we directly employ thousands of high-tech workers in our offices and logistics network and have established cutting-edge sorting centers to support our logistical requirements, including one of the largest e-commerce sorting centers in the region, at the Bac Ninh Vietnam-Singapore Industrial Park, which opened last year,” said Mr. Jason Bay, Director, Group COO's Office at Sea, the owner of Shopee.

Mr. Do Quoc Hung, Director of the Asia-Africa Market Department at MoIT, noted that the rapidly-developing e-commerce markets in Vietnam and Singapore provide opportunities to promote cooperation between businesses in both countries.

Vietnam has become one of the most attractive markets in ASEAN due to the explosion of e-commerce. Google, Temasek, and Bain & Company’s 2019 Southeast Asia E-Commerce Report predicted 29 per cent average growth for its e-commerce sector between 2015 and 2025.

Under the Digital Economy Strategy by 2030, Vietnam’s digital economy is estimated to reach $43 billion by 2025. Vietnam’s e-commerce market is expected to rank among the top 3 in Southeast Asia. To achieve ambitious digital economic goals, the Vietnamese Government is currently promoting e-commerce to support key export industries, expand domestic product consumption, and boost e-commerce development in localities.

Mr. Cao Xuan Thang, a representative from the Vietnam Trade Office in Singapore, said Singapore is an open market and a logistics hub, with no tariffs or non-tariff barriers imposed on imported goods, except for quality standards enforced by international organizations. In 2023, Vietnam and Singapore generated total trade of $9.1 billion.

“Vietnamese products are in demand in Singapore, providing Vietnamese businesses with an opportunity to export to the market,” he said.

Gateway to online exports in the region

According to the Department of E-commerce and Digital Economy (iDEA) at MoIT, the National E-commerce Development Master Plan for the 2021-2025 period aims to expand the market for Vietnamese products via e-commerce channels.

A report from Access Partnership in 2022 revealed that micro, small, and medium-sized enterprises (MSMEs) in Vietnam consider Southeast Asia and Taiwan (China) as top e-commerce export destinations. Fifty-eight per cent of MSMEs identified Southeast Asia and Taiwan (China) as priorities in the next five years

E-commerce offers opportunities for MSMEs and small-scale rural producers to access larger domestic and international markets, facilitating commerce and economic development.

As the gateway to global trade, doing business with Singaporean partners opens opportunities to access other markets. The main reason is that Singapore and Vietnam enjoy a number of advantages in trade, including their proximity to each other and participation in free trade agreements such as the ASEAN Trade in Goods Agreement (ATIGA), the Regional Comprehensive Economic Partnership (RCEP), and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Thai Khang is a local garment company in Ho Chi Minh City with a monthly production capacity of around 50,000 products, and currently sells wholesale to Southeast Asian buyers. It also sells its products via e-commerce platforms, primarily on Shopee Vietnam and Shopee International, to buyers in Thailand, Malaysia, and Singapore.

Its owner, Mr. Hong Thai, said it is investing heavily in boosting production capacity, but accessing regional markets requires systematic investments, particularly in market research.

“Vietnamese products are well suited to Southeast Asia,” he said. “Their markets accept OEM products. However, understanding foreign consumer cultures can be a challenge. To conquer top markets like Thailand and Singapore, investment in market research and establishing a reputable brand are crucial. Brand development is also essential. We are eager to develop our brand in the Southeast Asian market.”

Shopee is the most popular international e-commerce platform in Vietnam, with hundreds of thousands of local sellers and businesses doing business online overseas. A major advantage of the platform is its ability to connect to markets throughout Southeast Asia and Taiwan (China). Over 350,000 Vietnamese sellers are now selling globally through Shopee International, including over 1,000 Vietnamese brands. Shopee International lists over 15 million Vietnamese products for sale in the region.

On Shopee, local sellers in countries such as Vietnam can easily sell globally, according to Mr. Jason Yu, Head of Shopee International Platform.

“In 2021, Vietnamese sellers began selling their products in Singapore, Malaysia, Thailand, the Philippines, and Taiwan (China) through Shopee International,” he said. “We empower Vietnamese sellers and businesses to expand their online businesses and reach international markets by leveraging technological features and implementing business initiatives to connect them with potential buyers.”

The average monthly sales of Vietnamese sellers participating in the Shopee International platform have been steadily increasing by 20-30 per cent, with the majority coming from the Fashion and Fast-Moving Consumer Goods (FMCG) sectors. With stringent control processes from Shopee, users in other countries can access high-quality products from Vietnamese sellers at reasonable prices and with attractive deals.

“Shopee helps sellers in foreign markets operate their stores, such as automatically synchronizing their stores in Vietnam with overseas markets, handling import-export procedures, warehousing goods, resolving complaints from foreign buyers, and making international payments,” Mr. Yu explained. “Sellers will not incur any additional costs related to import-export processes, international shipping, or warehousing.”

MSMEs in Vietnam are also seeking to expand market share, reduce costs, and improve efficiency, with e-commerce being a crucial tool.

According to Mr. Trinh Viet Hai, Director of Vina World Food, a Vietnamese dried agricultural products manufacturer, Vietnamese products are unique because they use local raw materials. This gives them independence and control over production plans and quality, allowing them to confidently expand their brand with traceable, clean, and healthy products.

The company intends to export dried longan via Shopee e-commerce, targeting markets in Singapore, Taiwan (China), and Indonesia.

“We have begun experimenting in the domestic market, and the results are much better than expected,” he said. “E-commerce has helped us lower rental costs, expand our customer base, and reach suitable customer segments. Additionally, it serves as a marketing channel to promote products, giving buyers a closer look at the business store. Through cross-border e-commerce, businesses can export brands and products directly to global customers. This is something that businesses like us desperately need at this time.”

In April of this year, Shopee Vietnam launched a program called Enabling Vietnam, which partnered with Vietnamese businesses and manufacturers to bring Vietnamese goods to the e-commerce platform and sell them in Southeast Asia.

“We aim to introduce quality products to Southeast Asian consumers,” said Mr. Tuan Anh, Managing Director of Shopee Vietnam. “Starting in July, we will begin selling Vietnamese products to Singapore and Malaysia.”

For Vietnamese MSMEs, e-commerce is a vital way to expand consumption and increase competitiveness, while online exports open up regional markets around Southeast Asia. These efforts align with the government’s digital economy development strategy for 2030.