Domestic merchants flock to Amazon Vietnam

It is reported that Amazon said its business in Vietnam has achieved counter-cyclical growth amid the global economic recession, which is partly due to the large number of Chinese companies entering Amazon's Vietnam site.

Gijae Seong , head of sales at Amazon Vietnam , said that Vietnam's growth this year is even stronger than in 2021.

While he declined to disclose specific revenue figures, Seong said the number of merchants on Amazon Vietnam had surged 80% as of August , and that sales at these merchants were growing faster this year than in 2021.

Seong added that Southeast Asia has become the fastest-growing e-commerce market in the world, with Vietnam leading the region.

However, he also admitted that as the epidemic gradually subsides, most people hope to "return to normal life", which has led to a significant decrease in the number of online shoppers. Coupled with the increase in local interest rates, this is the "double challenge" currently faced .

"We are struggling. I think everyone is struggling this year," Seong told reporters in Ho Chi Minh City.

When asked by Nikkei Asia about the impact of the influx of Chinese companies into Vietnam , Seong said it would benefit Amazon in two ways .

First, Chinese merchants coming to Vietnam have raised local market standards because they can draw on more than a decade of experience in the Chinese e-commerce market . Second, some Chinese e-commerce sellers will choose to ship from Vietnam, increasing the country's export volume, thereby stimulating investment in Vietnam's logistics.

Although Seong is optimistic about the prospects of the Vietnamese market , the global economic downturn has dragged down several categories , including fashion and furniture , which are two of the top five categories with the highest sales on Amazon Vietnam .

Amazon said that as the fastest growing e-commerce region in the world, we will increase our investment in other Southeast Asian countries including Vietnam , and continue to pay attention to local merchants' services , discounts , Vietnamese customer service and other support.

Seong said that during 2018-2019 , when Amazon first entered the Vietnamese market , we received many complaints from sellers saying that it was very difficult to register an Amazon account in Vietnam .

"Therefore, we later recruited a large number of local employees to solve registration and other related issues, after which the number of store registrations on the Vietnam site increased significantly . "

According to Amazon , as of August this year , Vietnamese merchants have sold more than 10 million products on the Amazon platform , which is inseparable from the efforts of a large number of domestic sellers.

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