E-commerce Development: Need to Consider Sustainable Development Factors

With an average growth rate of up to 26% per year, e-commerce is projected to continue its strong growth in the coming period.

New opportunities

Vietnam's e-commerce growth is among the highest in the world and the region, ranking third in Southeast Asia. It is projected that by 2025, the size of Vietnam's e-commerce market will reach approximately US$45 billion. Many forecasts suggest that e-commerce will become a major driving force for the development of the digital economy .

Developing e-commerce requires consideration of sustainable development. Photo: Hong Hanh

There is much confidence in the strong development of this sector because Vietnam currently has over 1.4 million grocery stores and 9,000 markets. With the strong growth of e-commerce, especially after the Covid-19 pandemic, wholesale and retail activities are increasingly moving to digital platforms. Therefore, the target of e-commerce revenue accounting for 10% of total retail revenue by 2025 is entirely feasible.

According to the "Southeast Asia Digital Economy 2024" report published by Google and Temasek in early November 2024, the estimated size of Vietnam's internet economy will reach US$36 billion this year, a 16% increase compared to last year. Retail e-commerce continues to be the mainstay, contributing US$22 billion, an 18% increase year-on-year, and accounting for 61% of the total internet economy.

Besides price, the convenience of home delivery in e-commerce is a crucial factor for customers. Furthermore, the ability to track orders, delivery speed, and delivery costs also impact customer experience.

Speaking at the recent Digital Transformation Forum for the Industry and Trade Sector, Mr. Tran Minh Tuan, Director of the Department of Digital Economy and Digital Society ( Ministry of Information and Communications ), presented a rather surprising figure: On average, Vietnamese consumers shop online up to 4 times a month.

With a market of 100 million people, accounting for 1.23% of the world's population, and situated next to major markets such as China, India, and ASEAN, Vietnam has enormous potential for e-commerce development.

Notably, Prime Minister Pham Minh Chinh recently signed Official Dispatch No. 119/CD-TTg, requesting several relevant ministries and localities to continue strengthening state management of e-commerce. The dispatch clearly states that in recent times, e-commerce has developed strongly, becoming an inevitable trend of the global economy, especially cross-border e-commerce activities...

One of the important tasks that the Prime Minister requested the Ministry of Industry and Trade to take the lead in coordinating with relevant ministries and agencies is to continue reviewing the Commercial Law and related legal documents to promptly propose the development, amendment, and supplementation of policies and laws on e-commerce management; proactively develop policies to manage transactions in e-commerce activities for export and import goods; summarize and evaluate the implementation of the National E-commerce Development Master Plan for the period 2021-2025, and based on that, research, develop, and submit to competent authorities for approval the plan for the period 2026-2030…

Positive outlook for cross-border e-commerce.

Experts believe that cross-border e-commerce has enormous growth potential. Currently, Vietnamese digital technology businesses have built B2B e-commerce platforms, connecting with major global e-commerce platforms such as Amazon, Alibaba, and Timo... so that goods on Vietnamese e-commerce platforms will correspondingly appear on these major global e-commerce platforms, thereby connecting buyers directly with sellers and manufacturers.

According to statistics from Amazon Global Selling, through the Amazon platform, Vietnamese goods have the opportunity to reach over 2 billion people online each year in markets across North America, Europe, and many other countries such as Australia, Japan, Singapore, India, etc.

From a business perspective, Dr. Yap Kwong Weng, CEO of Vietnam SuperPort, also stated that Vietnam's trade is expected to grow over the next five years, thanks to free trade agreements, foreign investment, and public investments, creating positive prospects for cross-border e-commerce. China, the United States, and South Korea are among Vietnam's leading trading partners, playing a crucial role in expanding digital trade.

South Korea is one of Vietnam's growing trading partners, primarily in the fields of electronic components, electronic products, and household appliances. “ To realize our commitment to sustainable development, Vietnam SuperPort is applying advanced solutions such as using solar energy for buildings, energy storage systems, and electric trucks… All with the goal of achieving net-zero emissions by 2040. For our customers, partnering with a logistics port that prioritizes sustainability provides a competitive advantage, helping them achieve their own ESG goals and comply with increasingly stringent global environmental regulations ,” shared Dr. Yap Kwong Weng.

Undeniably, cross-border e-commerce helps businesses expand export markets, rapidly increase sales, quickly understand and respond to market demands, overcome market limitations in terms of size and seasonality, and build and enhance brand recognition in foreign markets. However, to effectively utilize this export channel, in addition to a favorable legal framework, businesses need to proactively adapt to market regulations.

In particular, green and sustainable consumption is a prominent trend worldwide. Therefore, experts advise that Vietnamese goods, in order to reach the global market, need to carefully consider the factor of sustainable development.

Speaking at the recent conference "Potential and Opportunities of Cross-Border E-commerce in Vietnam," Mr. Liu Liang, Chairman of the Yunnan E-commerce Association of China, also mentioned this issue; and stated that the prospects for future cooperation between Vietnam and Yunnan should focus on promoting green e-commerce, encouraging environmentally friendly packaging and low-carbon logistics, contributing to global sustainable development...

Source: https://congthuong.vn/phat-trien-thuong-mai-dien-tu-can-can-nhac-den-yeu-to-phat-trien-ben-vung-361182.html