Purchasing Chinese goods online booming in Vietnam

Purchasing Chinese goods online booming in Vietnam

By Nguyen Thi Thuy Anh, Zhang Jianhua (Xinhua)    14:22, August 31, 2013

Like anywhere else in the world, the use of the Internet and e-commerce has flourished inVietnam, especially in the capital Hanoi.
In fact, for the past few years, the Vietnamese people have been purchasing goods online,including products from abroad.
With rapid development of commodity production with various designs and the growth ofonline websites, more and more Vietnamese people choose to buy Chinese commoditiesonline.Duong Thu Hien,27, has been in purchasing Chinese goods online for the past seven years.She often receives orders from Vietnamese people for Chinese goods and then she ordersfor them on Chinese online sales sites.
China’s Taobao, Alibaba and Paipai are among the most browsed websites for Hien in herline of business.
Hien’s customers range from individuals to shop-owners in Vietnam. They will search forproducts on these Chinese websites, copy a hyperlink of the products they need and sendto Hien for her to make the orders.
Fashion items including clothes, shoes, bags, eyeglasses and cosmetics, are among the mostordered products from China, said Hien.
After making the orders on Chinese sites, Hien will contact her partners in China to do thepayment. Most of her contacts in China are Vietnamese students or people who can speakChinese.
Payments can be made by cash or through bank accounts, Hien said.
After receiving order from the suppliers, the contacts in China will send goods to China’sGuangzhou and from there, the goods will be shipped to Vietnam.
Customers must deposit from 70 percent or even 100 percent of the value of their orders,Hien said, adding that they can get the goods that they ordered after seven to 10 days.
After arriving in Vietnam, the products will be sold at shops or again posted on Vietnameseonline sites for sale.
According to Hien, the number of orders has increased sharply in the past four years asVietnamese, especially young people, prefer to purchase goods online because it is cheaperand they can choose from a variety of designs through the websites.
Like Hien, Nguyen Hai, a Hanoi resident, has also got familiar with Chinese online shoppingwebsites for around four years.
At first, Hai bought Chinese products online, mostly fitness and gym equipments, andresold them in Vietnam for a profit. Hai said that it is quite easy for him to purchaseChinese goods online, just click on the products, make payment and receive the orderedgoods a few days later.
But he then found that the profit was not too high so he decided to turn to another way tomake bigger profit.
Hai found products online through Chinese websites, including Taobao, then directlycontacts the manufacturers in China and proposes to make a modification in the designs tosuit to the needs of his Vietnamese customers. Hai said that this way of doing business ismore effective and more profitable.
According to the report of Vietnam e-commerce association based on a survey conductedby the Global Payment Technology Company VISA in Vietnam in 2012, among 36 percentof 87 million Vietnamese people using internet, 71 percent had done online shopping.
With the estimated purchasing value of 30 U.S. dollars per person per year, the total valueof e-commerce within Vietnam under Business-to-Customer (B2C) portals reached anaverage of over 660 million U.S. dollars in 2012.
It is forecast that by 2015, if the Vietnamese population would increase to 93 millionpeople and the value of online purchase would also increase correspondingly by 20 U.S.dollars, the total value of e-commerce in Vietnam will reach 1.3 billion U.S. dollars in 2015,said the report.

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: