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Commodity exports via e-commerce promoted during COVID-19 pandemic

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Representatives from State management bodies and companies speak about the advantages and challenges Vietnamese businesses face in e-commerce, especially commodity exports.

Tran Thanh Hai, Deputy Director of Import-Export Department, Ministry of Industry and Trade 

Commodity exports via e-commerce promoted during COVID-19 pandemic
Tran Thanh Hai, Deputy Director of Import-Export Department, Ministry of Industry and Trade. VNA/VNS Photo

E-commerce is an advanced form of commerce during the rapid development of information and technology.

E-commerce enables business-to-business and business-to-consumer transactions, in which Vietnamese consumers are now familiar with e-commercial floors like Lazada, Sendo or Voso.

Business-to-business transactions provide great support for the development of the business community, especially import/export via major e-commerce floors like Alibaba and Amazon.

During the COVID-19 pandemic, physical trade promotion activities were interrupted while online ones have been implemented and promoted.

Thus, e-commerce has been widely helping businesses overcome difficulties and limitations caused by the pandemic.

Through e-commerce, businesses can still connect with their customers and partners, and even connect more than conventional commercial activities.

To promote exports on e-commerce platforms, first of all, enterprises need to meet common requirements for commercial activities such as product quality, online marketing skills, payment methods, security and trust of customers.

As a State management agency, the Ministry of Industry and Trade has developed a 5-year action plan to develop e-commerce.

The plan is updated every 5 years. 

This plan includes activities not only conducted by the Ministry of Industry and Trade but also other ministries, agencies, localities and associations.

The Ministry of Industry and Trade has also regularly organised training courses to help associations and businesses get necessary e-commerce skills.

For the last two years, online trading and support activities have been done in all regions, locations, markets as well as different customer groups. 

Roger Lou, Country Director of Alibaba.com Vietnam

In 2021, Alibaba.com is aiming to increase Vietnam’s total export turnover by lowering barriers for export enterprises, developing human resources with cross-border e-commerce capability, and increasing training resources as well as customer services quality. These will help SMEs use our platform to full potential when they are on-board.

Under the pandemic, the traditional B2B buyer’s behaviour has quickly changed from offline sourcing to online.

From September 2019 to September 2020, the active buyers in Alibaba.com increased 84 per cent and the Gross Merchandise Value (GMV) – a metric that measures the total value of sales over a certain time – increased more than 110 per cent.

Among all categories, agriculture products, food and beverages are always in the top industries with the most active sellers and makes up 24 per cent of accounts on Alibaba.com Vietnam.

These numbers show that more and more sellers are using Alibaba.com as their choice to do international business and many buyers will find high quality products more easily.

During the COVID-19 pandemic, shoppers quickly shifted in-person shopping to online shopping. 

Commodity exports via e-commerce promoted during COVID-19 pandemic
Roger Lou, Country Director of Alibaba.com Vietnam. VNA/VNS Photo

In 2021, Alibaba.com has created a digital solution road map about Vietnam B2B International trade, which is based on supplier views and needs.

With the support and offer from Alibaba.com, enterprises will certainly be provided with full services and training courses for absolute development.

Alibaba.com also wants to promote Vietnamese businesses growth by building a cross-border e-commerce ecosystem in cooperation with partners to best support Vietnamese firms in cross-border trade, namely professional local channel partners, local logistics companies, government and non-government organisations, associations and local banks. 

Tran Thi Yen Phi, Managing director of DSW Trading and Service Ltd Company

As my company has been operating on an e-commerce platform since 2019, I highly appreciate business activities on e-commerce platforms, especially during the COVID-19 pandemic.

Since last year, we have exported products to Asian markets like Korea and Japan, to European ones like France and Germany and even underdeveloped countries.

Commodity exports via e-commerce promoted during COVID-19 pandemic
Tran Thi Yen Phi, managing director of DSW Trading and Service Ltd Company. VNA/VNS Photo

Through e-commerce, businesses can connect to markets around the world and supply Vietnamese goods to the markets.

With a network of suppliers from different areas/regions, businesses can also find partners who could supply products that match the needs of Vietnamese people.

This makes the supply chain circular and transparent, especially effective during the COVID-19 pandemic. 

The pandemic has been affecting the global business community.

All over the world, people are also working from home and operating online supply chains. Therefore, to catch up with the trend and survive, Vietnamese enterprises also need to change their ways and operation.

Once participating in cross-border e-commerce platforms, businesses should focus on their key products, learn carefully the regulations and laws of the host countries.

They also need to determine their target consumers and the consumers demand in specific e-commercial platforms that they join.

Source: Vietnam News

Source: https://vietnamnet.vn/en/business/commodity-exports-via-e-commerce-promoted-during-covid-19-pandemic-782616.html

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IT giant FPT reports high profits over first nine months of 2021

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FPT’s new headquarters on Phạm Văn Bạch Street in Hà Nội. — FPT.com.vn

HÀ NỘI – Information technology giant FPT has recorded VNĐ24.95 trillion (over US$1 billion) in sales and VNĐ4.57 trillion ($198 million) in pre-tax profits over the first nine months of 2021, up by 17.9 per cent and 20 per cent respectively.

Both revenue and profit enjoyed positive growth, with the technology and telecommunications sectors providing the primary impetus.

FPT’s technology sector accounted for 22.1 per cent of its revenue and 30.4 per cent of its pre-tax profit.

Overseas, sales increased in all of the major markets, especially in the US and Europe, due to high COVID-19 vaccination rates and steady economic recovery. FPT has consistently received substantial orders.

Revenue from digital transformation reached VNĐ3.94 trillion over the nine months, up by 59.6 per cent, thanks to growth in key technologies such as cloud computing (Cloud), Artificial Intelligence (AI), and low-code.

FPT secured 16 projects totalling more than $5 million by the end of the third quarter this year.

After three quarters of 2021, the group has achieved 72 per cent of its revenue target and 74 per cent of its profit target for this year, indicating that it is on track to meet its full-year targets.

FPT’s telecommunications sector has generated revenue of VNĐ9.23 trillion, an increase of 11 per cent with a pre-tax profit of VNĐ1.78 trillion, a 21.9 per cent increase over the same period last year.

Due to increased profits from PayTV, combined with the postponement of infrastructure investment due to the pandemic, the pre-tax profit margin of telecommunications services, including broadband and other services, continued to improve in the first nine months of 2021, reaching 20.8 per cent and 14 per cent, respectively. —

Source: https://vietnamnews.vn/economy/1063618/it-giant-fpt-reports-high-profits-over-first-nine-months-of-2021.html

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Vietnam to build $305mn airport in northern resort town

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Prime Minister Pham Minh Chinh issued a decision on Thursday to approve the construction of an airport in Sa Pa, a famous resort town in the northern Vietnamese province of Lao Cai, at an estimated cost of almost VND7 trillion (US$305 million).

The project, developed under the public-private partnership (PPP) format, is located on a 371-hectare plot in Cam Con Commune, Bao Yen District.

The first phase of the construction will start this year and will build the airport to a capacity of 1.5 million passengers a year before doubling it to three million passengers following the second stage in 2028.

The government will be charged with site clearance while private companies will undertake construction of the project. 

The government will contribute VND2.73 trillion ($119.8 million), or 39 percent of the funds, and private investors will cover the rest. 

Construction is expected to last four years and the investors are forecast to break even after 46 years. 

Sa Pa Airport is one of six new airports approved for construction by 2030.

Vietnam has 22 airports at present.

In the first six months of 2021, Lao Cai welcomed 1.1 million tourists, up 21 percent year on year, according to the Ministry of Culture, Sports, and Tourism.

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Source: https://tuoitrenews.vn/news/business/20211022/vietnam-to-build-305mn-airport-in-northern-resort-town/63719.html

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Effective linkage chain of safe agricultural production in Hà Nội

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Leaders of Hà Nội Department of Agriculture and Rural Development visited a linkage model of chicken raising for eggs with high economic efficiency in Liên Châu Commune, Thanh Oai District, Hà Nội. — Photo courtesy of Hà Nội Department of Agriculture and Rural Development

HÀ NỘI — Despite the complicated developments of the COVID-19 pandemic, thanks to agricultural production in the direction of safety, clear origin, and signing of product consumption contracts, agricultural product chains in Hà Nội are still promoting efficiency.

Director of An Phát General Agricultural Service Cooperative in Thanh Trì District Lưu Ngọc Nam said that in order to ensure a stable source of safe vegetables for supermarkets, convenience stores and collective kitchens, the cooperative has linked with 120 farming households in Yên Mỹ Commune, Thanh Trì District to produce more than 20ha of clean vegetables.

In addition, it also signed a contract to cover all vegetables produced in accordance with VietGAP standards in the communes of Yên Mỹ, Duyên Hà, and Vạn Phúc.

Director of Hoàng Long Cooperative in Thanh Oai District Nguyễn Trọng Long said that the cooperative supplied more than two tonnes of pork to the market every day.

Thanks to close links with the distribution system, the A-Z pork consumption chain of the cooperative has been maintained stably during the pandemic.

It is expected that people’s demand for food will increase by 15-20 per cent at the end of the year.

The cooperative was promoting re-herding and taking good care of the herd to supply the market at the end of the year with a possible output of more than 100 tonnes per month, said the director.

Production line of the Ba Vì Farm Milk Joint Stock Company. — Photo hoinongdan.org.vn

The modern milk production line of the Ba Vì Farm Milk Joint Stock Company has an initial capacity of about 6 tonnes per day.

To ensure the source of raw milk, the company has co-operated with more than 20 dairy farming households in Ba Vì District, purchasing about 1.5-2 tonnes of milk per day for pasteurised milk production and other dairy products.

With a modern double-sealed technology platform, a processing capacity of approximately 2,000 tonnes per year, the company has now launched more than 20 types of products, with a wide consumption market across the country.

Not only bringing good revenue, the linkage model of cow milk production also brings stable income for dozens of livestock households and about 50 employees.

Assessing the effectiveness of the chain of agricultural product consumption, the director of the Hà Nội Agro – Forestry – Fisheries Quality Assurance Sub-Department Nguyễn Thị Thu Hằng said that 141 chain links from production to consumption in Hà Nội was currently showing good results. The production in the linked chain not only helped increase economic value but also contributed to raise income for workers.

Consumers also benefit from agricultural products with clear origin, safety and quality assurance.

Currently, in the context of the COVID-19 pandemic, measures to stabilise the supply of food are very important.

In order for the chains to continue to be effective in all situations, Vice Chairman of Thanh Oai District People’s Committee Nguyễn Trọng Khiển said that the district has a policy to support funding for communes to increase training courses, raise awareness and production techniques of typical local agricultural products, build brands, and connect with businesses to sign contracts to consume products.

Nguyễn Văn Chí, director of the Hà Nội Rural Development Sub-Department and deputy chief of the standing office of the co-ordination office of the Hà Nội New Rural Development Programme, said that to support agricultural production and consumption, Hà Nội was trying to implement the form of consuming agricultural products through online channels and social networks in order not to disrupt the production and supply chains of agricultural products in the area.

Deputy Director of Hà Nội Department of Agriculture and Rural Development Nguyễn Ngọc Sơn emphasised that in order to support entities participating in the chain, Hà Nội’s agriculture sector was creating favorable conditions for localities to promote the transformation of agricultural economic models in the direction of concentrated farming, thereby forming a large commodity supply chain.

At the same time, it also provided loans from the Hà Nội National Agriculture Extension Center (NAEC) for agricultural producers and developers to apply high technology to ensure a safe supply of agricultural products for consumers.

Source: https://vietnamnews.vn/economy/1063199/effective-linkage-chain-of-safe-agricultural-production-in-ha-noi.html

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