Better exploit export market thanks to e-commerce platform

To effectively leverage the Chinese market, Vietnamese businesses must investigate e-commerce collaborations with foreign partners.

Taking initiative in seeking Chinese trading partners

No sooner did the Vietnamese durian receive the "visa" for official export to the Chinese market than the Agency of Foreign Trade under the Ministry of Industry and Trade developed and issued the Handbook guiding official entry of vegetables and fruits into China's market.

The eighty-page guidebook is an element of the government's strategy to encourage and transform border export operations into official channels. It offers key info for localities, commodity associations, businesses, and producers involved in the production and export chain of vegetables and fruits, as well as agricultural goods for the Chinese market.

The ministry strongly encourages businesses and cooperatives to participate in foreign trade fairs and trade promotion missions conducted by organizations, governmental agencies, and industry groups. This is a chance for buyers and sellers to meet, exchange information immediately, and agree on how to contact one another and negotiate contracts.

In accordance with the recommendations of the handbook, it is crucial to check information and evaluate the reliability of Chinese businesses after trading in order to prevent unnecessary risks. The website for validating Chinese company information (National Enterprises Credit Information Publicity System) is http:// www.gsxt.gov.cn/index.html. is recommended to check the strength and reputation of Chinese partners.

When meeting and exchanging with a Chinese partner for the first time at fairs, exhibitions, or through channels of seminars, forums, etc., it is necessary to request a business license issued by the Department of Administration of Industry and Trade in the Chinese province/city where the enterprise is headquartered.

Cooperation with e-commerce trade floors improves market exploitation

Several agricultural goods from Vietnam have successfully penetrated the Chinese market, capturing a significant market share. To maintain market share and improve added value, however, exporting enterprises must place a premium on market research, trade promotion, and branding. One strategy to increase the visibility of Vietnamese agricultural product brands on the Chinese market is to use e-commerce platforms, as well as globally and domestically prominent results from search engine pages.

Consider Alibaba, the biggest worldwide integrated internet marketplace in China as an example.  With the B2B (Business to Business) model of the platform, companies may get information about products and partners without face-to-face contact. This form helps companies save time and money while connecting.

Deputy Director of Chanh Thu Fruit Export Co., Ltd., Ms. Ngo Tuong Vy, said that participation in an e-commerce trading floor may save firms a substantial amount of money compared to direct connection and attendance at industry events.

"The majority of Chanh Thu's trading partners in China are long-established. However, the corporation enters e-commerce as a small section in order to grow its consumer base. Joining an e-commerce floor may save companies a substantial amount of money on connection fees, but it also necessitates the assistance of trade agencies, consulates, etc. to determine the credibility and trustworthiness of external partners," Ms. Vy said.

To sustain a long-term connection and trade export relationship, opening up prospects to export more items to a market of 1.4 billion people, the business's reputation and ability to fulfill technical and preservation standards are essential.

At a recent conference on agricultural products and drinks in Ho Chi Minh City, it was disclosed that over 2,000 Vietnamese firms participated in alibaba.com, with roughly 40 percent of those enterprises dealing with agricultural products. This commodity category has a growth rate that is three times greater than the supply growth rate.

According to Alibaba.com's data analysis, the agriculture and food products industry's business opportunity index increased by 14 percent from January 2021 to January 2022, compared to the same time the previous year. In addition, the growth rate of demand for these commodity groupings is three times that of supply. Particularly, customer traffic for Vietnam's agriculture and food products grows by 50 percent annually. The aforementioned data demonstrate that Vietnamese exporters of agricultural goods have ample opportunity to interact with foreign clients and enter new markets.

Mr. Nguyen Quoc Toan, Director of the Department of Agricultural Product Processing and Market Development, stated that exporting agricultural products via online channels is highly compatible with the current export trend, particularly in the Chinese market, which is experiencing a shift from unofficial to official quotas. "Through the e-commerce platform, Vietnamese suppliers may access buyers worldwide, including those in China. " Mr. Toan shared.

In addition to fundamental information on product standards, packaging, transactions, agreements, and payment methods, the guidebook provides firms with instructions on how to start and where to find Chinese buyers.

"Trademap" was developed by the International Trade Center (ITC) as a free and easy-to-use platform for Vietnamese businesses seeking Chinese partners. The absence of interaction between importers and exporters is its sole shortcoming.