Small businesses in Vietnam selling goods on Amazon are struggling to turn a profit, Vietnam News is reporting. It is suggested that this is because the overheads are too high, import requirements in target markets are difficult to overcome, and they can’t afford to do market research.

A recurring theme in the local media has been the challenges local firms face accessing markets overseas. More free trade agreements should, and does, mean greater market access in other parts of the world, however, in most developed markets quality requirements are much higher than they are in Vietnam. Whereas this does incentivise local producers to improve the quality of their products, improving the quality of their products comes at a financial cost. For example, more training and better equipment. Firms with limited access to capital, therefore, can find themselves limited in terms of shipping goods abroad and by extension limited in the benefits they receive from Vietnam’s many trade agreements.

Furthermore, it’s also not that common in Vietnam to conduct market research when entering a new market possibly on the back of a lack of competition under the former centralised economy system. Conversely, in developed markets market research is a cornerstone of the expansion plans of most firms and millions of dollars is being spent every year researching the Vietnam market. The point being, that there are disparities and inequalities between Vietnam and other member states of these agreements that should be monitored and may need to be addressed to ensure support of these agreements by the publics that they govern.

See also: How to Start an Import Business in Vietnam: Ultimate Guide 2024