Hanoi (VNA) 🦂– Vietnamese businesses operating on cross-border e-commerce platforms need to carefully select products that meet market demand and focus on brand building for sustainable growth, according to Gijae Seong, CEO of Amazon Global Selling Vietnam.

Over the past five years, the number of products sold by Vietnamese sellers through cross-border e-commerce platforms like Amazon has increased significantly. This growth is evident not only in volume but also in the diversification of product categories and brands across various industries. Initially, many Vietnamese sellers concentrated on simple, quick-profit products, aiming for short-term gains. However, now more sellers adopt a long-term vision, prioritising revenue growth, product quality and diversification, and brand development while expanding into new product categories.

Gijae pointed out that Vietnamese businesses have notable advantages, particularly in exports, supported by the government’s favourable policies and initiatives. Many Vietnamese factories and suppliers boast decades of export experience, giving them a competitive edge in international markets. Additionally, a vibrant community of young Vietnamese entrepreneurs has emerged, succeeding not only on Amazon but also on other e-commerce platforms, demonstrating a strong grasp of e-commerce driving forces. Vietnam’s manufacturing sector has also attracted substantial foreign investment, with many international brands relocating their production facilities to the country, further boosting export capacity. This development has significantly enhanced Vietnam’s supply chain and production capabilities, even for smaller businesses.

Challenges in global expansion

Despite these strengths, businesses have faced numerous challenges when entering global markets, Gijae noted. The first challenge is selecting the right products to sell. Success in cross-border e-commerce requires sellers to deeply understand market demands, comply with international regulations, and align products with market preferences. This process is critical to making wise decisions on what products to introduce. During the process of product development, businesses must also remain agile to incorporate customer feedback and keep up with ever-evolving market trends. For many sellers, adapting to the rapid pace of global e-commerce remains a significant hurdle. The second challenge is managing costs. Selling products from Vietnam to key markets, such as the US, involves considerable expenses, including logistics, inbound shipping, and inventory management. To address these challenges, Gijae emphasised the necessity of the government’s robust support. Amazon Global Selling Vietnam is working closely with governmental agencies to deliver accurate insights into the cross-border e-commerce model and connect sellers with policymakers. This collaboration helps authorities better understand the challenges businesses have faced, enabling more effective policy development and implementation. The company is also partnering with government entities to provide training programmes for small and medium-sized enterprises (SMEs). These initiatives aim to equip domestic businesses with the skills and knowledge needed to thrive in the global e-commerce marketplace. Looking ahead, Amazon Global Selling Vietnam has announced its strategic focus for 2025, marking a pivotal step in its efforts to unlock Vietnam's e-commerce export potential. Gijae highlighted the critical role of branding in achieving long-term success. In today’s market, demand drives competition rather than supply. While limited supply in the past allowed new products to attract buyers easily, the abundance of choices today necessitates a deep understanding of target customers and their needs. To build a successful brand, businesses must identify their target audience and address specific problems they have faced. By combining market insights with a unique selling proposition, businesses can establish a distinctive brand identity. Without this differentiation, sustaining growth on any e-commerce platform becomes increasingly difficult. Gijae warned that despite initial success, sellers may face competition from similar products, leading to a loss of market share if they fail to stand out. Therefore, brand building is essential for sustainable growth in the competitive e-commerce sector./.