Alibaba to double investment in emerging manufacturing centers in Vietnam

Global B2B e-commerce platform Alibaba.com has announced a three-year plan to expand its presence in some of Vietnam’s emerging manufacturing centers with the support of local partners. In addition to teams currently operating in Hanoi and Ho Chi Minh City in the initial phase, local teams are being established in Binh Duong, Bac Ninh, and Long An provinces and Da Nang and Hai Phong cities and will soon be operational.

During a press conference on July 26, Mr. Roger Luo, Southeast Asia Regional Director at Alibaba.com, emphasized that the expansion of its operations in Vietnam will enable small and medium-sized enterprises (SMEs) to leverage the power of global e-commerce for growth beyond the domestic market.

Furthermore, Alibaba.com will recruit local talent to provide suitable services and support for Vietnam’s exporters in these regions.

“Alibaba.com currently has over 47 million buyers in more than 190 countries and territories searching for products across more than 40 main categories,” Mr. Luo said. “Along with specially-designed digital tools, Alibaba.com is the starting point for Vietnamese SMEs looking to enter the international market. Additionally, by doubling investment in emerging manufacturing centers, we believe this initiative will attract more businesses to participate in global e-commerce.”

Alibaba.com figures show that the average number of buyers purchasing Vietnamese products increased by 55 per cent in March 2023 compared to March 2022, while the number of Vietnamese products on the platform increased 24 per cent. This indicates growing demand for Vietnamese products in the global market, highlighting the potential for Vietnamese businesses in the digital export sector.

One notable example is Hanh Sanh Manufacturing, a Vietnamese electric fan manufacturer. Leveraging digital tools and Alibaba.com’s support, Hanh Sanh has made remarkable strides forward, expanding its business operations and accessing markets in five countries worldwide, whereas previously it only focused on the domestic market.

It is worth mentioning that Vietnamese businesses have a competitive advantage in various sectors, including agriculture, food, fashion, handicrafts, construction, architecture, and garden products. Moreover, total buyer transactions increased 33 per cent year-on-year in the first half of 2023.

The global market also witnessed a growth milestone of 91 per cent in online traffic, particularly in emerging markets like Southeast Asia. This growth trend is expected to continue, and there is significant potential for Vietnamese businesses’ products to reach global markets in Europe and the US.