(VOVWORLD) - Although the number of e-commerce transactions with the European Union is not high, Vietnam businesses have been successful in building their first cross-border e-commerce models in the market.
 Vietnamese lychees are, for the first time, exported to Germany via Voso trading floor. (Photo: phunuonline.com.vn) |
The first 3 tons of Bac Giang lychees were recently exported to Germany on the Voso trading floor thanks to co-operation between the Department of E-commerce and Digital Economy, the Ministry of Industry and Trade, and Viettel Post.
Nguyen Hong Dien, Vietnam’s Minister of Industry and Trade, called the transaction an advance for Vietnam's e-commerce industry in bringing high-quality farm produce to demanding markets overseas like Europe.
“Bac Giang and other localities with agricultural specialties have quickly adopted new trading methods based on technological platforms. This innovative direction has proven effective during the coronavirus epidemic. I hope this trading model will make Bac Giang lychees more popular around the world and consolidate Vietnam’s trade relations with other nations,” said Dien.
The cross-border e-commerce sales of the 16 largest EU countries are forecast to reach 262 billion USD next year, which will double e-commerce sales in 2019.
This poses great opportunities for Vietnamese businesses to expand their market in Europe – but they will need to adopt a long-term strategic approach.
Under EU regulations, transactions on e-commerce platforms between Vietnam and the EU will still have to pay value-added tax, but any transaction worth less than 150 euros will be exempted from import taxes. Sellers have to be responsible for goods sold to EU consumers under EU consumer protection laws.
An official of the Ministry of Industry and Trade said that to develop sales online or through an e-trading floor to EU consumers, Vietnamese businesses must register their business and log transactions on the IOSS (Import One Stop Shop) website of an EU member country.
Nguyen Hai Minh, Vice Chairman of the European Businesses Association in Vietnam, said cross-border e-commerce has opened up new opportunities for exporting farm produce and other Vietnamese specialties now that the EU-Vietnam Free Trade Agreement (EVFTA) has come into effect.
According to Minh, “We hope localities will create action programs to help small enterprises clearly understand the benefits of the EVFTA, its roadmap for tariff reductions, and the quality standards set by the EU. That would help both Vietnamese exporters and Vietnamese consumers."
To promote cross-border e-commerce, Vietnam is refining its import/export, quarantine, and quality inspection procedures to meet requirements of European countries.
The Department of E-commerce and Digital Economy has helped Viettel create an English version of its Voso trading website to accommodate European consumers.