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How to start online sales in Vietnam?

After COVID-19 in 2020 e-commerce market started to expand significantly and this trend continues in 2021 and 2022. It is expected to continue in a post-covid era as well. Vietnam isn’t exception. According to Google, Vietnam is the second-fastest-growing e-commerce market in Southeast Asia with nearly 69 million internet users. Read on to find out why you should set up online business in Vietnam and where to start.
Reasons to start online sales in Vietnam

  • Smartphone penetration in the country is around 63%. This fact is closely connected with an increase in online purchases. Today, more than 61 million of Vietnamese are active smartphone users.
  • The forecasts claim that 70.1% (71 million) of Vietnamese will shop online by the year of 2025. It is nearly 17% more than present numbers (53%).
  • According to data presented by Information Technology Agency of the Ministry of Industry and Trade, the majority of small and medium-sized enterprises spend 30% of their budget on technological development.
  • It is expected that annual growth rate of Vietnamese e-commerce market will equal 6-7% until 2025. So it is considered as extremely perspective and promising area for business development.
Online sales
How to start online sales in Vietnam?

Firstly, to conduct business activities in e-commerce area you will have to register your company before conducting any transactions. To register e-commerce business the company needs an investment registration certificate (IRC), followed by an enterprise registration certificate (ERC). If you are planning to sell directly to the end consumers, you have to acquire trading/retailing license. To receive direct payments from customers, the company must apply for an Intermediary Payment license. Otherwise, it is required to cooperate with entities which already have an Intermediary Payment license such as banks, Momo, and Zalo Pay.

The next step is app or website registration as an e-commerce platform. It is necessary for websites that serve as platforms where other sellers and buyers conduct any transactions. You will have to prepare such documents as notarized copy of the Enterprise Registration Certificate (ERC), plans to provide services, statute of management of the e-commerce service website and many others.
Some products require registration as well. They include medicine, medical devices, cosmetics, processed foods, beverages, etc.

Channels for online sales

There are 3 most widespread types of e-commerce business in Vietnam: online retailers, online marektplaces, and online classifieds.

  • Online retailers
They buy the products they want to sell and store them until they are sold to customers. Many online retailers are those who own traditional retail shops on the street.

  • Online marketplaces
An online marketplace provides a website or a platform for selling different products. Customers conduct all payments on this particular platform. The biggest Vietnamese marketplaces are Sendo, Shopee, Tiki, and Lazada. Such international ones as Amazon, Alibaba, and eBay actively operate in the country as well.

  • Online classifieds
They serve as an online classified listing service where advertisers post their advertisements of the particular products. The main difference between marketplace and classifieds is that the last ones do not receive payments, buyer make payment directly to the seller.

Awesome products Co. provides wide range of services to help you start online sales in Vietnam whether you are domestic enterprise or foreign investor. We can also help you to start sales in the USA, UK, Germany, Netherlands, France, Italy, Spain, Mexico, and Canada via Amazon. Our team has years of experience in how to set up accounts, make listings, write proper descriptions and launch marketing campaigns.

Follow us to learn more about our services and we will set up e-commerce business together!