EXPORTS VIA DIGITAL PLATFORMS: LEVERAGE FOR BUSINESSES TO OVERCOME DIFFICULTIES

Digital platforms have helped many businesses make profits during the recent difficult epidemic period by bringing products to distant markets; step by step successfully building a brand at low cost; as well as facilitating smooth flow of goods even amidst the disruptions caused by the epidemic.

Operating in the field of agricultural products, for the past 3 years, DSW Trading and Services Co., Ltd. has been exporting through digital platforms. According to a business representative, since its establishment, this business has determined that its main business method is online sales. Thanks to exporting via digital platform, after only one year, DSW’s revenue climbed from 3,000 USD of the first order to 260,000 USD right in the epidemic season.

Executive Director of DSW Trading and Services Co., Ltd. Tran Thi Yen Phi shared that over the past several years, the company has conducted 100% of business via e-commerce platforms and all revenue has been earned through e-commerce. Over the years, the company has grown at a rate of 150-200%. In 2022, the company will develop more diverse products to bring economic benefits to farmers and plans to hit markets with high consumption demand such as China and the EU. The company's revenue is expected to reach 3.6 million USD.

Promoting exports through digital platforms is also the development orientation of Proline Vietnam Manufacturing and Trading Co., Ltd. in 2022. The representative of this business said that they export online because that is the fastest and most effective way with the most optimal cost for a business to reach customers. Notably, this company is also making good use of the livestream platform to interact with customers, thereby creating trust and promoting better sales.

Deputy Director of Proline Vietnam Production and Trading Co., Ltd Nguyen Xuan Hai Yen said that 100% of the company's current export revenue comes from e-commerce activities. The growth figure of export activities has “carried” revenue for the whole domestic market last year.

“In the past, I thought that livestreaming was only for individual customers. But when applying it to business, we have found it to be really effective when we can make an appointment with customers to introduce them to the company' facilities, technology, and products and can interact with customers, gain their trust and answer their questions and concerns”, said Ms. Nguyen Xuan Hai Yen.

Those are two of many businesses that have benefited greatly from export activities on digital platforms. In recent times, a number of Vietnamese enterprises, mostly small and medium-sized enterprises, have been quite successful in bringing their products to the international market through online export channels.

In 2021, the number of products sold by Vietnamese businesses on Amazon.com increased by 34% compared to 2020. Notably, in 2021, two more e-commerce platforms with the largest and second largest scale in China, Alibaba.com and JD.com, were connected to the Vietnamese market by the Ministry of Industry and Trade (MoIT), aiming to support businesses in bringing their goods to consumers around the world and using platforms to promote and approach import partners.

In the coming time, the Ministry of Industry and Trade will continue to support businesses to better promote the image of Vietnamese goods, with a focus on opening national stores on e-commerce platforms, shared Director of Vietnam Trade Promotion Agency of the MoIT Vu Ba Phu, adding that the Ministry has also contacted all the major e-commerce platforms in the world and is discussing with them about the opening of more national stores of Vietnam.

Several free trade agreements which have been signed have also helped remove most of the tariff barriers. Doing business through e-commerce platforms will create favourable conditions for Vietnamese businesses to find sustainable business models through digital platforms, thereby helping to increase export revenue for businesses in difficult times; while at the same time, opening opportunities for Vietnamese goods to better conquer the world market when the epidemic is brought under control.

Source: VIR