Booming e-commerce sales provides opportunities for cooperatives

Booming e-commerce in Vietnam is providing significant opportunities to promote sales while cooperatives are trying to improve the quality of their products to meet consumers' demands better.

According to the Ministry of Industry and Trade, made-in-Vietnam goods accounted for more than 90% of products on shelves of domestic distribution companies and 60-95% of foreign supermarket chains.

According to a survey by e-commerce aggregator platform iPrice Group, the percentage of shopping through online channels more than doubled over the same period last year.

Seeing the trend of booming e-commerce, highlighted after the COVID-19 pandemic, cooperatives were making moves to promote sales via this channel.

Many cooperatives improve their products in terms of quality, packaging, and origin to better meet the demand of consumers, which would help improve consumers' trust in shopping online.

Quyet Thanh Agriculture Cooperative had arranged their dried mango pieces into a brilliant yellow rose and packed it in a round plastic box instead of a zip bag. According to the cooperative, this helped attract the attention of many consumers in both online and offline channels.

Cooperatives also cooperated with e-commerce platforms to improve the production and distribution process.

Nguyen Thi Hoan, Director of Tai Hoan Vermicelli Cooperative in Bac Kan province, said that in the past, customers were concerned about the quality and origin of products which were sold online. Still, many cooperatives opened official kiosks on e-commerce platforms where customers could be assured of the product quality and a clear origin.

Luu Thi Hoa, Director of Po My Cooperative in Ha Giang province, said that e-commerce platforms helped cooperatives to reach more customers. Moreover, the consumer information file of e-commerce platforms was diverse, which would help cooperatives to improve their adaptation to the market demand and increase revenue.

According to Nguyen Thi My Hanh, Deputy Director of Grab Vietnam, if the cooperatives across the country knew how to take advantage of support tools and features on e-commerce platforms and online sites to reach target customers, cooperatives could grow strongly in revenue and reap many sweet fruits in the year-end shopping season.

The application of digital technology was considered an important factor in creating breakthroughs in developing cooperatives.

Director of Tam Dao Mushroom Cooperative Nguyen Quoc Huy said that the cooperative installed an automatic irrigation system, net house, greenhouses, a semi-automatic control system, accounting software, online tax declaration, email, data storage, digital signature and camera system to ensure the quality of products for exports. The cooperative’s products were also sold on e-commerce platforms such as Postmart.vn and Voso.vn.

According to the Ministry of Agriculture and Rural Development, there are more than 17,770 agricultural cooperatives in Vietnam; 1,718 of these have applied high technology in farming and preservation, automation technology and biotechnology.

Of them, 21% have plans for e-commerce sales, 23% sell their products on e-commerce platforms, 21% have created simple websites, 7% have websites that appear on Google and 7% advertise on Facebook.

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