Build your own sales channels if e-commerce competition too harsh: NextTech exec 

By Lan Do
Thu, January 16, 2025 | 9:05 am GMT+7

If e-commerce competition is too harsh, Vietnamese businesses should develop their own sales channels and customer databases, says Nguyen Hoa Binh, founder and chairman of NextTech Group, a leading technology startup in Vietnam.

Binh made the remark at the Shark Tank Forum 2025 in Ho Chi Minh City on Thursday. During the discussion, he highlighted three significant trends shaping the future of e-commerce.

First, the concept of "buying cheap and selling expensive" no longer exists; it is replaced by the method of buying and selling from the root to the top. This change has been killing many businesses.

Specifically, businesses that import cheap goods from China, from wholesale markets, and then sell them on the street no longer have business opportunities. The reason is that e-commerce is developing, and cheap goods from China are sold directly to consumers at prices that are sometimes only one fifth of those in Vietnam.

The delivery time of Chinese businesses is very short. Therefore, small traders who import goods from China and then sell them at 4-5 times higher prices have been and are slowly dying, Binh noted.

From left to right: Nguyen Phi Van, chairwoman of Go Global Holdings; Nguyen Hoa Binh, founder and chairman of NextTech Group; Louis Nguyen, CEO of Saigon Asset Management (S.A.M.); and Phan Minh Thong, CEO of Phuc Sinh Group, at the Shark Tank Forum 2025 in Ho Chi Minh City, January 15, 2025. Photo courtesy of the forum.

From left to right: Nguyen Phi Van, chairwoman of Go Global Holdings; Nguyen Hoa Binh, founder and chairman of NextTech Group; Louis Nguyen, CEO of Saigon Asset Management (S.A.M.); and Phan Minh Thong, CEO of Phuc Sinh Group, at the Shark Tank Forum 2025 in Ho Chi Minh City, January 15, 2025. Photo courtesy of the forum.

Second, e-commerce is pacified by large platforms, and trading platforms have been and are tightening sellers with stricter fees and criteria. In China, there are cases where related fees account for up to 40% of product revenue.

Third, when sellers face an increasingly harsh environment and do not have customer data, they start to tend to have their own platforms to get their own customer data.

Faced with the above challenges, Binh proposed three options for businesses to cope.

Firstly, intermediary traders who import goods from one place and sell them elsewhere will gradually die out. Therefore, those in this group should gradually prepare, come up with products with Vietnamese labels, produced by Vietnamese people or processed in other countries such as China and India to stay in the market.

Secondly, businesses that use e-commerce need to professionalize the operation process, in which warehousing and logistics are very important. If the seller is slow to deliver or the goods are damaged, then customers can rate 1 star and affect the business's operations.

Thirdly, when the trading floor is too harsh, businesses need to build their own sales channels to have their own customer data. When selling on the floor, businesses have absolutely no customer contact information, so they need to invest to have their own customers to survive in the future.

Phan Minh Thong, CEO of Phuc Sinh Group, Vietnam’s major pepper and coffee exporter, emphasized the importance of sustainable development, noting that it is becoming a non-negotiable requirement.

Banks have already started integrating sustainability into their lending criteria. Sustainable development is no longer a distant concept; it is a pressing reality. For example, natural disasters like typhoon Yagi have served as a wake-up call for Vietnamese businesses and citizens. Startups must educate themselves and implement sustainable practices, Thong commented.

Food safety is also a critical issue. Before the Covid-19 pandemic, products in the U.S. market often lacked certification. However, post-pandemic, food safety certifications have become a requirement for products on store shelves, he added.

Shark Louis Nguyen, CEO of Saigon Asset Management (S.A.M.), highlighted the immense opportunities for Vietnamese startups in the field of artificial intelligence (AI). He urged startups to explore how AI can influence their industries and integrate it into their operations to gain a competitive edge.

Comments (0)
  • Read More
Vietnamese EV maker VinFast signs loans worth $190 mln for Indonesia plant

Vietnamese EV maker VinFast signs loans worth $190 mln for Indonesia plant

VinFast, the electric vehicle arm of Vietnam's leading private conglomerate Vingroup, has secured a long-term syndicated loan agreement worth IDR1.85 trillion ($110 million) and an $80 million accordion facility from two Indonesian banks to finance the construction of its plant in Indonesia.

Companies - Sun, May 4, 2025 | 12:55 pm GMT+7

Vietnam's logistics major Transimex targets 20% profit growth in 2025

Vietnam's logistics major Transimex targets 20% profit growth in 2025

Transimex, a top logistics firm in Vietnam, targets net profit of over VND204 billion ($7.8 million) for 2025, up 20% year-on-year, on revenue of over VND3.36 trillion ($129.2 million), up 1%.

Companies - Sun, May 4, 2025 | 12:23 pm GMT+7

Vietnam's retail giant Petrolimex seeks foreign partnership in green energy technologies

Vietnam's retail giant Petrolimex seeks foreign partnership in green energy technologies

Vietnam's biggest gasoline retailer Petrolimex has started selling biofuels and is actively seeking opportunities to partner with international players to invest in green energy technologies. Chau Anh reports.

Companies - Sun, May 4, 2025 | 9:37 am GMT+7

Vietnam's major tire maker Danang Rubber to be supplier of EV maker VinFast

Vietnam's major tire maker Danang Rubber to be supplier of EV maker VinFast

Danang Rubber JSC (DRC), a subsidiary of Vietnam’s state-owned chemical giant Vinachem, will develop a dedicated line of electric vehicle (EV) tires while rolling out products to support its new partnership with the country's leading EV manufacturer VinFast.

Economy - Sun, May 4, 2025 | 8:00 am GMT+7

Vietnam’s VN-Index world’s second-worst performer in Apr amid US tariff turmoil

Vietnam’s VN-Index world’s second-worst performer in Apr amid US tariff turmoil

Vietnam’s benchmark VN-Index dropped by more than 80 points, or 6.2%, in April, ranking as the second-worst performing stock index globally, according to data compiled by IndexQ.

Finance - Sat, May 3, 2025 | 6:48 pm GMT+7

American International School Vietnam chairwoman arrested for disrupting public order

American International School Vietnam chairwoman arrested for disrupting public order

Ho Chi Minh City police's investigative agency on Thursday initiated legal proceedings against and detained chairwoman of American International School Vietnam (AISVN) Nguyen Thi Ut Em for "disturbing public order.”

Companies - Sat, May 3, 2025 | 5:07 pm GMT+7

Nike, Adidas ask President Trump for tariff exemption over business shutdown concerns

Nike, Adidas ask President Trump for tariff exemption over business shutdown concerns

Major footwear and apparel brands, including Nike and Adidas which outsource a large portion of their output from Vietnam, are asking U.S. President Donald Trump for a tariff exemption due to concerns over looming cost surges and business shutdown.

Economy - Sat, May 3, 2025 | 1:12 pm GMT+7

Vietnam's Novaland wins lawsuit against Korean giant Taekwang Vina over HCMC project

Vietnam's Novaland wins lawsuit against Korean giant Taekwang Vina over HCMC project

Vietnam's leading developer Novaland has won a legal dispute with South Korea’s Taekwang Vina regarding a major real estate project in Thu Duc city, Ho Chi Minh City.

Companies - Sat, May 3, 2025 | 11:20 am GMT+7

Vietnamese approves two-year sandbox trial of P2P lending

Vietnamese approves two-year sandbox trial of P2P lending

Vietnam will roll out a two-year sandbox trial of peer-to-peer (P2P) lending, credit scoring, and data sharing via open application programming interfaces, starting July 1, according to a newly-issued government decree.

Banking & Finance - Sat, May 3, 2025 | 8:17 am GMT+7

Hyundai Vietnam joint venture to spend $100 mln on shipbuilding capacity expansion

Hyundai Vietnam joint venture to spend $100 mln on shipbuilding capacity expansion

Hyundai Vietnam Shipbuilding Co., Ltd. (HVS), a joint venture between South Korea and Vietnam, is set to invest an extra $100 million in expanding its shipbuilding capacity in Vietnam.

Industries - Fri, May 2, 2025 | 8:03 pm GMT+7

Vietnam's economic hub HCMC moves closer to establishing int’l financial center

Vietnam's economic hub HCMC moves closer to establishing int’l financial center

After more than two decades of planning, the vision of establishing an international financial center in Ho Chi Minh City is finally gaining real momentum as the Politburo has officially endorsed the proposal, drawing significant attention from investors.

Southeast Asia - Fri, May 2, 2025 | 6:04 pm GMT+7

Vietnam cuts LNG import tariff to boost clean energy transition

Vietnam cuts LNG import tariff to boost clean energy transition

The Vietnamese Government has reduced the preferential import tariff on LNG from 5% to 2% under a decree issued on March 31, which marks a key step in accelerating the country’s shift from fossil fuels to cleaner energy.

Southeast Asia - Fri, May 2, 2025 | 3:26 pm GMT+7

Vietnam races against time to have EC’s 'yellow card' lifted before Sept 15

Vietnam races against time to have EC’s 'yellow card' lifted before Sept 15

Vietnam's Ministry of Agriculture and Environment has proposed Prime Minister Pham Minh Chinh issue an action plan to address the European Commission's (EC) “yellow card” warning and prepare for the fifth EC inspection.

Southeast Asia - Fri, May 2, 2025 | 3:21 pm GMT+7

Vietnam's property market sees mixed prospects in Q2: analysts

Vietnam's property market sees mixed prospects in Q2: analysts

Vietnam’s real estate market is expected to see positive developments in Q2, with developers launching new projects, but uncertainties from U.S. trade policies may influence market sentiment and consumer confidence, said analysts.

Real Estate - Fri, May 2, 2025 | 3:14 pm GMT+7

Vietnam’s largest container fleet operator records 478% profit growth in Q1 on surging shipping rates

Vietnam’s largest container fleet operator records 478% profit growth in Q1 on surging shipping rates

Vietnam’s Hai An Transport and Stevedoring JSC (HAH) reported after-tax profit of nearly VND274 billion ($10.54 million) in Q1/2025, skyrocketing 478% year-on-year, thanks to soaring shipping rates.

Companies - Fri, May 2, 2025 | 3:00 pm GMT+7

Vietnam's leading construction contractor Hoa Binh targets US market amid low domestic profit

Vietnam's leading construction contractor Hoa Binh targets US market amid low domestic profit

Hoa Binh Construction Group, one of Vietnam's top contractors, is negotiating a joint venture agreement with American partners to pave the way for implementing major projects in the U.S.

Companies - Fri, May 2, 2025 | 2:04 pm GMT+7