E-commerce spearheads business digital transformation
E-commerce has emerged as a pivotal force in the digital economy, achieving an impressive growth rate of 25% in 2023 and is forecasted to contribute 10% of total retail revenue by 2025. This dynamic trend presents vast opportunities while compelling businesses to adapt rapidly and reach key milestones in their digital transformation journey.
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| E-commerce on digital platforms such as Zalo, TikTok, Facebook is now quite popular in Vietnam. |
Tran Quoc Bao, Deputy CEO of KIDO Group and Executive Director of the group's E2E (Entertainment & E-Commerce) channel, shared that in the first three months of implementing online sales, the company was concerned about the results it might achieve through e-commerce. However, today, the majority of its revenue comes from e-commerce, proving that this is a right direction to pursue.
Nguyen Lam Thanh, a representative of TikTok Vietnam and Vice President of the Vietnam Digital Media Association, stated that the implementation of the TikTok platform and TikTok Shop aims to support the government, businesses, and labourers during the digital transformation era while bringing Vietnamese products closer to consumers.
In practice, TikTok’s initiative to launch the OCOP (One Commune One Product) marketplace honoured Vietnamese agricultural products and bridged the digital gap between rural and urban areas. As part of this programme, citizens are encouraged to host a livestream session every Saturday to introduce their products, successfully reaching 5 million viewers.
In June 2024, the programme was expanded and renamed “Pride in Vietnamese Goods”. Over the past six months, 10,000 businesses have been supported in uploading content to TikTok Shop using hashtags like “Pride in Vietnamese Goods” and “OCOP”.
As a partner of the Ministry of Industry and Trade in organising various programmes, TikTok has committed to supporting e-commerce initiatives and helping the ministry introduce Vietnamese manufacturers' products to the consumer community.
Hoang Thi Tan, Director of Tam Tra Thai Cooperative, shared that the cooperative has actively promoted its products on digital platforms such as Zalo, TikTok, Facebook, and its website. Currently, around 40% of its output is sold through digital platforms.
The application of information technology and digital transformation is also creating breakthrough opportunities for the collective economy and cooperatives in the northern province of Thai Binh. With over 800 cooperatives and cooperative groups across the province, Thai Binh is actively promoting supply-demand connections, enhancing competitiveness, and building sustainable value chains for its key products.
Tran Van Toan, Chairman of the provincial Cooperative Alliance, stated that in 2024, the alliance has focused on stepping up the application of IT and digital transformation by digitising processes for receiving applications, scoring, and ranking various products.
Experts noted that Vietnam is among the fastest-growing countries in e-commerce, with an average growth rate of 25% per year, ranking among the top in ASEAN. According to Lai Viet Anh, Deputy Director of the Vietnam E-Commerce and Digital Economy Agency under the Ministry of Industry and Trade, the rapid growth of e-commerce comes with challenges such as competition issues, counterfeit goods, intellectual property violations, and uneven participation from businesses.
Furthermore, e-commerce transactions are mainly concentrated in Hanoi and Ho Chi Minh City. Therefore, local Departments of Industry and Trade should collaborate with the agency to implement measures that support businesses in bringing Vietnamese products to the digital environment and improving competitiveness against foreign enterprises, she stressed.
Regarding the future direction of e-commerce, Anh emphasised the need to develop human resources and sustainable e-commerce. This requires balancing the interests of consumers and businesses, large and small enterprises, domestic and foreign companies. By doing so, Vietnam can achieve a balance between economic growth and social and environmental goals, she added.
(Source: VNA)
