Today, the Department of Trade Promotion at the Ministry of Industry and Trade has announced cooperation with Amazon Global Selling to support Vietnamese companies to promote export through e-commerce.
Through this partnership, Amazon will help these companies sell and export their products through the Amazon platform.
Collaboration with third-party traders is the first step for Amazon to officially enter the Vietnamese market with all the services offered.
Before launching the entire market and warehouse platform in Australia, Amazon helped Australians first sell their products on this platform. Likewise, before official sales in Brazil, Amazon operated an e-commerce platform for third parties selling phones and devices.
This step in Vietnam is the same as the previous strategy in many markets. Initially, it will help Amazon build friendship with consumers before launching their full platform.
In addition, this step also shows that Southeast Asia is at the forefront of Amazon's international expansion plan. Amazon also started operations in Singapore – the first market in Southeast Asia in June 2017 – where they have launched all services including Prime and Prime Now.
It is understandable that Amazon is targeting the Southeast Asian market. E-commerce in Southeast Asia is expected to reach $ 88 billion by 2025, which is $ 11 billion in 2017.
Nikkei said that if Amazon released "full" services in Vietnam and outside Southeast Asia, it will face strong competition from Alibaba to JD.com. Especially in Vietnam, the Lazada-Alibaba unit takes over 30% of the market share of e-commerce in the country.
JD.com also showed its interest in this market by investing about $ 50 million in Tiki – a local retailer.
Young intellectuals / Nikkei, BI