In the newest post on our LinkedIn Channel, FinFan discusses the top 20 startups in Vietnam after Q2-2023 according to the newest statistics of Failory - a content site for startup founders and entrepreneurs. We also give our opinion about the most especially attracted industries by investment funds.
Through that, we can see e-commerce and fintech are the ones, that have had the fastest development in Vietnam in recent years. In this article, let’s find out this with FinFan in this article.
In the 2000s, when the internet was present in Vietnam, e-commerce was not yet popular. Normally, sellers still sell in the traditional way.
If they set up a website to sell, they are also big players in the industry, and the websites at that time are simply places to promote their brand or a place to set up a “call to action” to the points of sale through advertising in electronic newspapers.
At that time, e-commerce platforms had not yet been formed and the only way for small sellers was to become agents or distribution channels for companies providing those products.
The peak of e-commerce began when Vietnam became an official member of the WTO at the end of 2007. At this time, Vietnamese goods could be exported to member countries without barriers. economic and vice versa. This has opened a new chapter in the formation of international e-commerce.
Appearing around 2011, Facebook initially came to Vietnam as a place to share emotions along with a form of online connection using the very familiar tools at that time, Yahoo Messenger and Blog360.
From here, the concept of what is considered a social network was formed where people can share statuses and connect with each other without having to meet.
It was not until 2014, when this social network allowed users to advertise to attract customers interested in selling fan pages, that the concept of online sales was formed and opened a new chapter for Vietnam's e-commerce market.
Since that time, the online sales market has gradually become more vibrant, with more and more new sellers opening sales pages, creating a new market full of potential, and businesses without importing goods opportunities began to open. In addition, small factories also grasped this trend to constantly develop and achieve admirable successes.
In fact, e-commerce trading floors have been present in Vietnam since 2012 when Lazada entered the market.
However, by 2016, Shopee with its extremely attractive strategy is "Anyone can do shopping online" targeted the majority of customers insight in Vietnam - people who are afraid of online shopping on e-commerce platforms due to high prices or shipping costs.
With the above strategy, Shopee continuously creates attractive deals during sales seasons of the year to attract consumers to spend money on online shopping and educate the online shopping market everywhere in Vietnam.
Even for the first time, sellers are subsidized by Shopee up to 50-75% of promotions to create extremely shocking deals for only 10k VND or even 1k VND. Along with that is cooperating with shipping units to reduce shipping prices, even free shipping for orders on its own e-commerce platform.
2020 marked a new development step for cross-border e-commerce when Amazon Global Selling was established and has gradually supported Vietnamese sellers in reaching the international level.
From here, unique domestic handicrafts or traditional products have had the opportunity to bring their goods to the US and some other countries.
Putting goods on the Amazon e-commerce site has been a great step forward for this industry in Vietnam. However, the issue of payment for these items is still extremely difficult for sellers in Vietnam because most of these sellers often work traditionally and are not too familiar with technology.
Meanwhile, selling on foreign e-commerce platforms requires them to have a VISA account as well as registration procedures from online portals such as PayPal, Payoneer, etc.
To receive payments from abroad, sales partners in Vietnam must have a Visa account to be able to connect with PayPal - a giant in payment gateway services in the US.
Merchants can go to the nearest transaction location of their bank and request an account and VISA card.
PayPal has remained at the forefront of the digital payment revolution for more than 20 years. By leveraging technology to make financial services and commerce more convenient, affordable, and secure, the PayPal platform is empowering people and businesses to join and thrive in the global economy.
To create a PayPal account for business, merchants need to follow these steps:
Navigate to the PayPal website in your web browser. You’ll find the ‘Sign Up’ button at the top right of the homepage. Click on this button to start the process of creating a new account.
You’ll be prompted to select the type of account you want to create. Choose ‘Business Account,’ then click ‘Next.’
You’ll be asked to provide an email address. Make sure this is a valid, active email address as it’ll be used for all PayPal communications. After entering your email address, click ‘Next.’
Choose a strong, unique password for your PayPal Business account. Making sure your account is well-protected is vital. Click ‘Next’ after entering your password.
You’ll now need to provide information about your business. This includes:
PayPal will ask for more specific information about your business such as:
Now, you’ll need to provide personal information, including:
This information is necessary for PayPal’s security checks and verifying your identity.
Read through the PayPal User Agreement, Privacy Policy, and Electronic Communications Delivery Policy. If you agree with these terms, check the box confirming your agreement. Then, click ‘Agree and Create Account.’
Finally, you can set up your payment method. You’ll be prompted to link your bank account or credit card. This will enable you to make payments with your PayPal account and withdraw funds.
PayPal will send a confirmation email to the address you provided. Open this email and click on the link to confirm your email address. This step verifies that you have access to the email address you provided.