Want To Win The Vietnam Market, Amazon And Ali Need To Overcome A Common Rival
- Apr 09, 2018 -

Analysts said that Amazon is not easy to conquer the Vietnamese market. It must compete with sellers selling on social platforms, especially sellers sold through Facebook. The 27-year-old Mai Duong is a staff member in Hanoi with a monthly salary of 1,000 US dollars and belongs to the Vietnamese middle class. However, through Facebook sales, her income has increased two or three times. Duong focuses on selling high-quality foreign goods to high-income people in Vietnam. Each product I can earn 30,000 to 50,000 VND profit, it is reported that she can sell thousands of products every month. Hoang Linh, a manager of a fashion store in Hanoi, also said that the profits she makes from selling things online are higher than her salary as a manager. Linh said: "There are many online sellers, but this market still has great potential." Duong and Linh can be regarded as strong rivals of the e-commerce platform, with a considerable share of the retail market. In a recent article, the Nikkei commented that e-commerce giants such as Amazon and Alibaba should be alert to Vietnamese who buy and sell products through Facebook. Some sellers selling products through social networks can earn 10,000 U.S. dollars per month. This online transaction is developing so rapidly that the government is considering whether to levy tax on this trade. The e-commerce market in Vietnam is growing at a rate of 25% per year and is expected to continue its rapid growth from 2018 to 2020. In the next four years, the market value of Vietnam's e-commerce market will reach 10 billion U.S. dollars. Overseas investment funds and companies are also continuing to inject capital into Vietnam E-Commerce. A digital marketing analyst stated that it is not easy for Amazon to conquer Vietnam's e-commerce market. He said: “For many Vietnamese who want to pay in cash, it would be better to buy products from online sellers,” he added. The fees paid through banks account for only 10% of Vietnam’s total transactions. "In addition, the biggest advantage of this retail model is its low cost," he said. “Sellers do not pay taxes. Unlike e-commerce companies, they do not have to pay large salaries for their employees.” Pham Thai, a Savills (real estate service provider) in Ho Chi Minh City, also said that despite the size of individual online sellers, Not much, but so much will also be competitive. Vietnamese government officials also tried to appease Vietnamese local e-commerce companies because of warnings that Amazon will drive them out of the Vietnamese market. Tran Thanh Hai, a senior official at the Ministry of Industry and Trade (MOIT), said: "Amazon and Alibaba will not target the segments targeted by Vietnamese companies."

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