Amazon will help these corporations sell and export their products through its platform, and details of the plans can be presented on the Vietnam Online Business Forum 2018 on March 14.
Collaborating with third-party sellers is probably going a precursor to Amazon entering the market with a full offering.
Before launching its full marketplace and warehouse in Australia, Amazon helped Australian third-party sellers sell overseas, and before recent reports that Amazon was planning to launch in Brazil, it operated a marketplace for third-party sales of electronics and residential appliances.
The Seattle-based company will probably want to use its partnership with VECOM as a technique to gain foothold in Vietnam and construct connections with consumers before launching full marketplace, Fulfillment by Amazon (FBA), Prime and others.
This launch in Vietnam suggests that Southeast Asia is a major goal for Amazon’s international expansion plans. In July 2017, Amazon also launched in Singapore, its first market in Southeast Asia, where it now fully supports Prime and Prime Now.
These first two forays happening so close to one another could mean Amazon has big plans for the region, which might make sense given e-commerce sales in Southeast Asia are expected to grow to $88 billion by 2025 , up from an estimated $11 billion in 2017 .
The region is especially invaluable to Amazon as growth in its Prime subscriber base is reported to be declining and international markets, especially those with Southeast Asian potential, could provide a major boost.
Amazon will face stiff competition in Vietnam and throughout Southeast Asia from Alibaba and JD.com.
The presence of each of those powerful corporations will make it difficult for Amazon to reach Vietnam, and if the corporate desires to expand to other markets reminiscent of Indonesia, it can face similar situations, often with Alibaba and JD.com having a major advantage at first.
Source : http://www.businessinsider.com/amazon-to-enter-vietnam-2018-3/?IR=T
