Link to original video by Momentum Works

Closing the gap with China: Vietnam’s ecommerce growth? | Impulso E90

Closing the Gap with China: Vietnam's Ecommerce Growth? | Impulso E90

Short Summary:

This episode of the Impulso podcast explores the rapid growth of Vietnam's e-commerce sector, particularly focusing on live commerce. The podcast features two guests from MEAP, a Vietnamese content creator facilitator, who discuss the country's economic potential, the evolving e-commerce ecosystem, and the unique characteristics of the Vietnamese market. The episode highlights the similarities and differences between Vietnam and China's e-commerce landscapes, emphasizing the opportunities and challenges for Chinese companies entering the Vietnamese market.

Detailed Summary:

Section 1: Introduction and Background

• The podcast begins with introductions of the hosts and guests, Hong and NI from MEAP.
• They discuss the recent event hosted in Ho Chi Minh City with Chinese investors and e-commerce enablers, highlighting the growing interest in Vietnam's market.
• The guests provide context on the Vietnamese economy, emphasizing Ho Chi Minh City's role as the economic hub and the government's efforts to invest in infrastructure and economic development.

Section 2: Career Journeys and Vietnam's Evolution

• Hong shares his journey from an auditor and investment advisor to becoming the CEO of MEAP, a company that helps content creators turn their passion into sustainable careers.
• He highlights the increasing adoption of digital media and mobile technology in Vietnam, driving the growth of social commerce and content creation.
• NI discusses his 12 years of experience in e-commerce, observing the rapid evolution of the industry in Vietnam, from selling books and electronics to now offering a wide range of products, including medicines, with fast delivery times.

Section 3: Chinese Interest and Vietnam's Potential

• The discussion shifts to the interest of Chinese companies in Vietnam's e-commerce market.
• The guests emphasize the similarities between the two countries' e-commerce ecosystems, including the presence of similar players and the rapid growth of live commerce.
• They highlight the potential for Vietnam's e-commerce market to grow even further, citing the country's young population, growing middle class, and favorable government policies.

Section 4: E-commerce Ecosystem and Enablers

• The guests discuss the evolving e-commerce ecosystem in Vietnam, highlighting the increasing role of enablers, including logistics providers, fulfillment companies, and marketing agencies.
• They share their experiences as enablers, emphasizing the importance of connecting content creators with brands and facilitating social commerce through live streaming.
• They highlight the rapid growth of live commerce in Vietnam, with penetration rates reaching almost 20% and a significant contribution to the overall e-commerce growth.

Section 5: Trends and Opportunities in Vietnam's E-commerce Landscape

• The guests discuss the increasing popularity of cross-border e-commerce, driven by the ease of supply chain connections and the availability of logistics partners.
• They emphasize the importance of supply chain proximity, particularly in the northern part of Vietnam, where goods can be sourced and manufactured quickly.
• They highlight the growing sophistication of Vietnamese consumers, who are becoming more knowledgeable about products and are increasingly seeking value for money and unique products.

Section 6: Cultural Differences and Navigating the Vietnamese Market

• The guests discuss the cultural differences between Vietnam and China, particularly in terms of business culture and decision-making processes.
• They emphasize the importance of building consensus and collaboration in Vietnamese businesses, as opposed to the more top-down approach often seen in China.
• They advise Chinese companies entering the Vietnamese market to be adaptable, open to collaboration, and willing to learn from local partners.

Section 7: Advice for Chinese Companies Entering Vietnam

• The guests conclude by offering advice for Chinese companies looking to enter the Vietnamese market.
• They emphasize the importance of finding a good local partner to navigate the market and grow sustainably.
• They recommend starting small, conducting thorough research, and being on the ground to understand the local dynamics and cultural nuances.

Notable Quotes:

• "We have been helping thousands of content creators in Vietnam to really turn their passion into a sustainable career." - Hong
• "The consumers were very calculative... you give a PR promotion, demand goes through the roof, you stop promotion, boom, drop to the ground." - Jangang
• "I think it's definitely real, but I want to discuss more about the reason behind it... I think it might potentially be because of the competition." - Hong
• "If you're looking for a formula, then you'll probably not get it. What you should really do is just go on the ground, observe." - Jangang
• "The best thing the brands would like to enter Vietnam is to find a good local partner to have them enter the market and grow their brand sustainably." - KN
• "Opportunity comes with threats... you should be taking time to do research and then be careful and really really be on the ground." - NI