A Plethora of MSME Businesses Going Global with Success, Thanks to E-Commerce

Speaking at a seminar on the theme “E-Commerce Development – Opportunities, Dynamics, and Challenges,” held by the Government Portal in mid-August, Ms. Lai Viet Anh, Deputy Director of the Department of E-Commerce and Digital Economy (Ministry of Industry and Trade), shared that the orientation of the e-commerce development plan for the next five years that the Ministry of Industry and Trade is consulting and submitting to the Government is to promote the export of “Made in Vietnam” products to international markets through e-commerce.

In line with this orientation, many e-commerce platforms actively promote cross-border selling programs and support sellers to expand their consumption scope from the domestic market to overseas, with a focus on local businesses to realize the goal of bringing “labeled” Vietnamese products closer to consumers worldwide. The “Global Selling” program implemented by Shopee since 2021 currently aligns closely with this objective.

Businesses thrive through the online export e-commerce model

The biggest advantage of the “Global Selling” program with Shopee lies in the platform’s full support and free assistance throughout the process, including synchronizing shops from the Vietnamese version to the international one, handling import and export paperwork, marketing, selling, and operations. The seller’s sole responsibility is to meticulously prepare the product supply and coordinate with the platform’s team to ensure a smooth and timely delivery process.

Big Size Boutique, a plus-size fashion brand on Shopee run by Mr. Dinh Huu Lam, has witnessed remarkable growth in Southeast Asian markets. Thailand, in particular, saw a 167% increase in sales and a 220% rise in order volume within the last 30 days, an encouraging “test” for Mr. Lam after nearly three years of focusing on the Malaysian and Singaporean markets.

Looking at a broader perspective, Big Size Boutique’s revenue in ASEAN has doubled compared to the same period last year, while the proportion of new customers has increased by 70%. “Currently, the Malaysian market still accounts for 63% of the market share, and Singapore accounts for over 30%. However, I will continue to expand and experiment in other markets where Shopee is present,” said Mr. Lam about his future plans.

Another case is SKFood, a shop specializing in Vietnamese dried products such as cashews and dried fruits. Participating in the ASEAN Online Shopping Festival 2024 helped SKFood’s international shop achieve impressive results. On August 8 alone, the number of orders increased by more than 50% compared to regular days, and the number of new users surpassed the 30% mark.

On August 8, the sales of SIP Vietnam doubled compared to last year. SKFood was also among the top-selling brands on that day in Malaysia and Singapore. (Source: SKFood)

“Before joining SIP, I didn’t think cross-border e-commerce would be this simple. Shopee takes care of all marketing, operational, warehousing, and legal export procedures, including food hygiene and safety certification, while I only need to deliver the goods to the shipper. This arrangement allows me to manage both the domestic and international shops simultaneously and enhance our production capacity,” affirmed Ms. Le Thi Bich Ben, the leader of SKFood.

E-commerce levels the export playing field for businesses of all sizes

Recognizing the vast potential and scope for e-commerce development, Ms. Lai Viet Anh asserted that MSMEs participating in this field can still develop on equal footing with larger enterprises.

According to a report by Access Partnership (UK), retail e-commerce exports were estimated at $3.5 billion in 2022, a 7% increase from 2021, and could reach $13 billion by 2027. This progressive growth highlights the immense potential of the online export model. To achieve this figure, Access Partnership suggested that MSMEs need to accelerate the adoption of e-commerce for exporting their products and services compared to the present rate. According to the consultancy, 95% of surveyed MSMEs expected B2C export growth through e-commerce to increase by at least 10% annually over the next five years.

“We support businesses in exporting to the Southeast Asian market, and in the future, we hope to access more new markets. Producers should focus on production, while Shopee takes care of operations and product promotion in the market,” said Mr. Tran Tuan Anh, CEO of Shopee Vietnam, regarding the SIP program.

SIP assists sellers in expanding their business and introducing products to international markets, including Malaysia, Singapore, the Philippines, Taiwan, and Thailand.

Currently, more than 350,000 Vietnamese sellers participate in SIP, with thousands of new sellers joining each month, promoting over 15 million products in the Southeast Asian market. The average monthly sales of Vietnamese sellers in the program have also increased steadily by 20-30%.

From the perspective of a pioneer seller, Mr. Dinh Huu Lam believes that online exports are no longer a challenging endeavor, but it requires a clear business strategy and the ability to maximize support from the platform. It is crucial not to be overly ambitious by targeting all markets or expanding into too many product niches. Instead, focus on a few key areas to develop sustainably and efficiently.