Virtual booths open new doors for Vietnamese farm produce in China

The virtual booth is operated by China’s Sunwah Group (Hong Kong) under a cooperative agreement signed with the centre in June 2023. The initiative aims to enhance trade promotion and provide Vietnamese farm produce with direct access to the lucrative Chinese market.

Agritrade director Nguyen Minh Tien said that initial trials promoting products such as cashew nuts, edible bird's nests, and rice on Chinese e-commerce platforms garnered significant attention and orders from consumers.

“Building on this success, we are expanding Vietnamese products’ presence on popular platforms and social media networks in China,” he said.

Sunwah Gelafood has registered a Vietnamese farm produce stall on TikTok and a best-selling Vietnamese goods stall on Kuaishou. The company also plans to extend to platforms like Taobao, JD.com, and Xiaohongshu.

The initiative employs live streaming and short video broadcasts to align with the "product-seeking consumers" model, which prioritises engaging consumers through dynamic digital content.

According to Qi Ping, general director of Sunwah Gelafood Supply Chain Management Company (Henan, China), products featured on the booth must comply with China’s cross-border import regulations, meet Vietnamese quality standards, and have independent branding with intellectual property rights. Businesses must also obtain a registration code in China and pass relevant certifications before participating.

“After testing initial orders, businesses can sign agreements for official participation and use trial sales results to plan production and export shipments to Sunwah Gelafood’s bonded warehouse in Luoyang, which facilitates live-streaming sales sessions,” Qi said.

To support businesses, training will be offered on video production, working with Key Opinion Leaders (KOLs), packaging, market trends, and warehouse management. Like Amazon and similar platforms, Sunwah Gelafood provides end-to-end services, from product storage to sales, while charging related fees.

Opportunities amid export challenges

China has been Vietnam’s largest trading partner for many years. By the end of the third quarter this year, Vietnam’s exports to China reached US$44.4 billion, marking a 2.94% increase year-on-year, according to the General Department of Customs.

However, the agricultural sector continues to face challenges, including high input costs, fluctuating logistics expenses, shifting import policies, and volatile bank interest rates.

Agritrade director Tiến said that businesses should seize opportunities like e-commerce to sustain production and export activities. Currently, most Vietnamese agricultural exports to China were concentrated in the southern provinces of Yunnan, Guangxi and Guangdong. Expanding to e-commerce platforms would open doors to Chinese inland provinces and major urban centres.

“E-commerce accounts for 33 per cent of China’s retail market and is growing rapidly. If Vietnamese businesses aim to increase market share and boost exports, they must leverage these platforms,” Tien said.

E-commerce offers a direct business-to-consumer (B2C) channel that supports brand building for Vietnamese agricultural products.

Nguyen Thi Lan Huong, chairwoman of the Viet Phuc Production and Import-Export JSC, said, “E-commerce creates an effective channel to support exporters, especially in building national agricultural brands.”

According to statistics from the Alibaba platform, the number of Vietnamese products listed increased by 24%, reflecting growing demand and market presence.

Le Trung Dung, a representative of the E-Commerce and Digital Economy Agency under the Ministry of Industry and Trade, noted how e-commerce had transformed international trade. “It shortens the distance to markets, bypassing traditional barriers like language and geography,” he said.

Nguyen Quang Duy, CEO of DT Group, highlighted two critical factors for success on e-commerce platforms: “First, product quality is essential to attract customers. Equally important are modern, trend-driven, and environmentally friendly packaging."

According to Sunwah Gelafood, products like coffee, edible bird's nests, and processed or dried fruits are particularly well-suited for sale on Chinese e-commerce platforms. These items will be prioritised for extensive promotion in 2025, aiming to reach broader consumer bases across China’s provinces and cities.

However, Sunwah General Director Qi suggested improvements in packaging and flavour diversity to cater to younger online consumers, who dominate the e-commerce space.

Agritrade director Tien said that Vietnamese businesses exporting farm produce through traditional distributors often relied on partners to repackage goods for Chinese consumers. “When exporting directly, businesses need to invest in packaging and branding that align with local preferences,” he said.

The initial phase of entering China’s e-commerce market could be challenging, Tiến acknowledged. He advised businesses to collaborate with Vietnamese and Chinese authorities and partner with KOLs, whose substantial follower bases could provide strategic advantages in reaching consumers.

As Vietnamese farm produce gains traction on Chinese e-commerce platforms, the initiative represents a significant leap forward in modernising Vietnam’s export approach.

By leveraging digital tools and targeting consumer trends, Vietnamese businesses have the potential to expand their reach, enhance brand recognition, and contribute to the growth of the country’s agricultural sector.