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"There are around 9,000 brick-and-mortar markets across Vietnam, with hundreds of shops selling everything from food to clothing to home appliances. They were once thriving business centers. But with the country now the fastest-growing e-commerce market in Southeast Asia, they have fewer shoppers.

“Consumption at many markets is now at just 60% capacity,” said Vo Van Khanh, an executive at the industry body Vietnam E-commerce Association (Vecom) who leads an initiative to revive traditional markets. “They could shut down if we don’t act.”

Across Southeast Asia, e-commerce is booming, with gross merchandise value of about $115 billion in 2023, up 15% from a year earlier, according to research firm Momentum Works. Local sellers have struggled to adapt to the heavy discounts, fast delivery, and cross-border sales from the largely Chinese e-commerce platforms.

n response, authorities in Indonesia, Malaysia and the Philippines have imposed higher import tariffs on e-commerce purchases. In Thailand and Vietnam, small businesses have called for similar measures.

But Vietnam has taken a different approach: Authorities are encouraging vendors to embrace e-commerce, with the government backing efforts by industry players including Vecom, TikTok Shop, and Shopee, to train merchants. The e-commerce association has trained about 450 sellers at nine markets since May, on how to set up on e-commerce platforms, manage online orders, and do livestream sales, where viewers can purchase products in real time as a host presents them.

Next year, Vecom aims to reach 1,000 markets with an aim of successfully converting 500 vendors. It has also collaborated with Shopee to train more than 20,000 small businesses across the country."

https://restofworld.org/2024/vietnam-traditional-markets-e-commerce/

#Vietnam #Asia #eCommerce