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Export OCOP products via e-commerce channels

According to the Vietnam E-Commerce Association, the Association is promoting and bringing Vietnamese goods, agricultural products, and OCOP products into the bonded warehouse in Henan province. This is one of the bonded warehouses with a very fast expansion rate with a total area of 14km2, with a bonded warehouse system spread throughout mainland China. Products brought into this bonded warehouse will be supported in organizing online sales to all Chinese consumers.

(News Portal – Dong Nai) - Recently, many OCOP (One Commune One Product) product manufacturers in Dong Nai participated in a workshop on accessing the Chinese market through e-commerce in Da Nang city. This is an activity within the trade promotion program of the Department of Industry and Trade of Dong Nai province to support OCOP entities in the province with the opportunity to sell through e-commerce channels into the Chinese market.

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Dong Nai businesses discuss with consulting businesses on exporting agricultural products through e-commerce channels to the Chinese market at a conference held in Da Nang city. 

Exporting via e-commerce is selling products on cross-border e-commerce platforms. This is a solution that opens up export opportunities to the large Chinese market for small and micro-scale manufacturers.

An opportunity for small manufacturers

At the conference, Mr. Vo Van Khanh, Head of the Da Nang E-Commerce Association (under the Vietnam E-Commerce Association) said: "I visited a number of provinces in China, at a supermarket in Henan province (China), I saw Vietnamese avocados being sold here at very high prices even though the quality was not too good. Because it takes a lot of time for our products to enter China through intermediaries." According to Mr. Khanh, for a long time, the story of exporting to China had been mainly in the traditional way and participating in this market was usually a large-scale production enterprise that meets the conditions of paperwork, procedures, and goods output... But up to now, it is the story of exporting through e-commerce channels with the opportunity to directly export products to the Chinese market for both small and micro businesses.

Ms. Nguyen ANNA, representative of VIETFAS Co., Ltd. (Hanoi) commented that with the cross-border export model via e-commerce channels, manufacturers only needed to meet the requirements to make good products, not to meet the requirements of having large output, which can include hundreds of items in one exported container from many establishments and small manufacturing enterprises from different provinces and cities. Goods will go through Chinese bonded warehouses for direct distribution deep into the Chinese market. Exporting goods in this form of cross-border export has many advantages such as: reduced import and export procedures because many types of goods are exempt from specialized inspection, greatly reducing the types of procedures that normally are difficult for small production facilities to meet the needs; import tax exemption and reduction... In addition, China's bonded warehouse system has many supports for manufacturers such as organizing showrooms to display, experience, and buy products (where Chinese people come to have hands-on experience with products, and might buy these products); organize product sales through e-commerce platforms; packaging and delivery service to consumers... The biggest advantage of this distribution channel is that it helps manufacturers reduce intermediaries in distribution. This is a form for manufacturers to sell directly to retail buyers and goods to reach all Chinese customers, not just distributing in a small niche in some provinces and cities as before.

A low price to pay in order to enter the Chinese market

Mr. Tran Anh Dung, Director of Biliver Vietnam Joint Stock Company (Hanoi) shared some of his thoughts about the e-commerce overview of the Chinese market. Currently, many Chinese businesses and people participate in sales by livestream, with all kinds of items. The bonded warehouses offer the service of organizing online sales livestreams. Online sales revenue is very good. Mr. Dung stated the advantages for selling through e-commerce channels into the Chinese market including: largest population in the world; extremely strong development of the internet and widespread use of smartphones; logistics is extremely developed, especially the transportation system; online payment is widespread. In particular, after the Covid-19 epidemic, Chinese people have formed the habit of online shopping, even for fresh food items. There is a big advantage that China's delivery service is strongly developed, very fast delivery time, professional service, with product review teams operating on tiktok...

At the conference, businesses in Dong Nai province introduced many products such as dried fruits, meat products, sauces, spices, cordyceps...  with the hope of being connected to the province's bonded warehouse in Henan province, effectively exporting products through cross-border e-commerce. Mr. Liu Tac Sang, Director of Thuan Huong Production Trading Company Limited (Dinh Quan district) shared: "The company has had many export orders to the Chinese market in the traditional way. After listening and being advised on the conditions and solutions for exporting cross-border agricultural products via e-commerce channels, I see that this is a potential distribution channel that our company should look forward to participating in. This is a new sales channel that is very effective, saves costs and limits risks, which is very suitable for our business in the current difficult period." ​

Author: Binh Nguyen

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