The story of the journey to bring Vietnamese coconuts to international e-commerce platforms such as Amazon and Alibaba is opening up a new direction for the country's agricultural industry in the context of strong growth in e-commerce in Vietnam.

Mr. Cao Ba Dang Khoa, Vice President and General Secretary of the Vietnam Coconut Association, shared at the Vietnam E-commerce and Digital Technology Application Forum 2024 that selling through e-commerce platforms is the key to helping local goods reach a wide range of consumers, not only domestically but also in the international market.

From the story of Vietnamese coconuts wanting to be listed on Amazon, Alibaba...

According to statistics from the Vietnam Coconut Association, there are currently over 600 coconut production and coconut-related enterprises nationwide. Of which, the four main coconut export industries include: Food, cosmetics... produced and processed from coconut (accounting for 55% of the country's total coconut export turnover); wood, handicrafts, mosaics... using coconut materials (about 20%); supporting industrial products, coconut oil, coconut fiber... (about 10%); fresh coconut (15%).

In fact, Vietnamese coconuts have already established a reputation at home and abroad, especially in the Chinese market. Currently, 30% of Vietnam's coconut export output is consumed in China, and the coconut industry is exploiting new markets such as Europe, Mongolia, and Korea.

The Chinese market has marked a big step forward in the official export of coconuts from Vietnam after the protocol between the two countries was signed, paving the way for Vietnamese coconuts to officially access the billion-people market. Thanks to that, coconut businesses have not only increased production but also improved product quality to meet the standards of the importing country. Mr. Khoa said that some Vietnamese businesses have invested heavily in setting up agents in Shanghai and organizing livestreams to promote and sell products.

“I also admit that the Vietnamese business community is very sensitive. When the protocol was passed, coconut production and export businesses continuously made changes in product quality as well as seized the opportunity to meet orders from China and other countries. Thanks to that, Vietnam's coconut industry has had an exciting change,” Mr. Khoa added.

However, to be successful on international e-commerce platforms such as Amazon or Alibaba, businesses need to clearly understand the requirements and strictly comply with the regulations of each market. According to Ms. Do Hong Hanh, Director of Strategic Partnerships of Amazon Global Selling Vietnam, selling on Amazon requires businesses to pay attention to quality standards and intellectual property, especially for products such as cosmetics or products related to human health, where there are high requirements for certificates and technical standards.

Mr. Cao Ba Dang Khoa, Vice President and General Secretary of the Vietnam Coconut Association, at a press interview on the sidelines of the Vietnam E-commerce and Digital Technology Application Forum 2024 on the afternoon of November 6 in Hanoi.

In addition to product requirements, cross-border e-commerce also poses major challenges in terms of language, culture, and complex legal systems. To address this issue, Mr. Khoa recommends that businesses develop a long-term business roadmap, build a risk management strategy, and prepare to meet inspection, tariff, and consumer protection requirements in international markets.

In addition, small and medium-sized manufacturing enterprises are also actively supported by Shopee Vietnam. According to Mr. Phan Manh Ha, Director of External Relations at Shopee Vietnam, by 2024, the platform aims to help 1,000 Vietnamese businesses access the market through e-commerce channels. These support programs include training courses on business skills and experience, helping businesses maximize the potential of digital sales channels.

Come understand and grasp the popular trends in the market

The General Department of E-commerce and Digital Economy (Ministry of Industry and Trade) forecasts that e-commerce in Vietnam will continue to grow strongly, reaching a revenue of 20.5 billion USD in 2023. This makes Vietnam one of the countries with the fastest e-commerce growth in the world. In rural areas, the proportion of people participating in online shopping is increasing, with cashless payments being widely deployed.

Sharing with VnBusiness, Mr. Cao Ba Dang Khoa commented that e-commerce can become an effective bridge, supporting local businesses to reach potential customers nationwide and internationally. However, Mr. Khoa also pointed out that currently, domestic consumers' trust in livestream sellers is still low. To increase customer trust, businesses need to focus on product quality and transparency in sales activities.

To overcome these challenges, experts suggest that local businesses should actively participate in trade events, seek cooperation opportunities and update new technology solutions. In addition, building a digital transformation roadmap is necessary so that local cooperatives and businesses can better integrate into the international e-commerce ecosystem.

Mr. Khoa also proposed support policies such as encouraging installment payments for technology equipment serving digital transformation, and organizing training sessions for units having difficulty accessing new technologies. These supports will help small businesses and cooperatives in remote areas gradually adapt to e-commerce, thereby increasing the competitiveness of Vietnamese products in the international market.

Promoting e-commerce not only helps businesses reduce intermediaries and save costs, but also provides detailed data on consumer behavior, thereby improving products and business strategies. Success stories such as the Vietnamese coconut business in Shanghai show the great potential of Vietnamese products on international e-commerce platforms, and are clear evidence that digital transformation brings benefits to local agricultural businesses. In order to compete with international products and affirm their position, Vietnamese businesses need to make continuous efforts, proactively adapt and understand the characteristics of each e-commerce market.

Source: VnBusiness