Amazon Vice President: Vietnam is an emerging supply chain link

Vietnam is an emerging supply chain link of global e-commerce, according to Eric Broussard, Vice President of Amazon Group.

The above assessment was made by Mr. Eric Broussard at the Amazon Cross-Border E-Commerce Conference 2023, on October 19 in Ho Chi Minh City. Mr. Eric is Vice President of Amazon Group in charge of International Sales Partners. He has worked at Amazon for 25 years and this is his first visit to Vietnam.

"Vietnam has the opportunity to diversify its product portfolio thanks to its advantage as a new manufacturing hub in Asia and the world, with a rich product supply capacity. In addition, the entrepreneurial spirit here is very high, contributing to increasing its role in the global e-commerce supply chain," Mr. Eric explained.

Mr. Eric Broussard at the event held in Ho Chi Minh City on October 19. Photo provided by the company

According to a newly released report by Amazon, in the 12 months ending August 31, Vietnamese businesses sold more than 17 million products on this platform, a value increase of 50% compared to the same period in 2022. Of which, the 5 best-selling product categories include home, kitchen, health - personal care, apparel and beauty.

Mr. Gijae Seong, CEO of Amazon Global Selling Vietnam, said that 2023 is the first year that the beauty industry is in the top 5. In particular, products such as eyelashes - fake nails, eyelash serum - hair growth, teeth whitening powder, scar healing cream "Made in Vietnam" are in high demand.

During the same period, the number of Vietnamese sales partners also increased by 40%. However, the group did not disclose the specific number, only saying it was "thousands". Currently, about 90% of Vietnamese sellers on the platform are small, medium and micro enterprises. A few large enterprises have started opening shops on this platform, such as Minh Long ceramics, BeeFurni wooden furniture, Truong Tho seaweed, or recently Thien Long ballpoint pens.

Appreciating the prospects, Mr. Eric announced his commitment to increase Amazon's presence in Vietnam. In the latest move, the platform has just put into operation the Amazon Day-1 Training Center Vietnam and a new office in Ho Chi Minh City. This is Amazon's first on-site training and connection center in Vietnam with a capacity of 100 people, along with a studio to produce and broadcast online training content on cross-border e-commerce.

According to research by the UK consulting firm Access Partnership, Vietnam's e-commerce export turnover is estimated to reach around VND80 trillion in 2022. This figure could reach nearly VND300 trillion in 2027 if domestic enterprises are supported to accelerate online exports.

Mr. Eric Broussard believes that the shift in consumer behavior from offline to online is still taking place. Therefore, there is still a lot of room for development for cross-border online retail, especially when the proportion of this form of export compared to traditional export is still small.

"To increase the proportion of online exports, in addition to informing businesses about this form more, it is also necessary to develop an ecosystem of support services for the industry," said Mr. Eric. For example, in addition to airline partners, Amazon this year also has a shipping partner, making it more convenient for Vietnamese sellers to export B2C (retail to customers).

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