Amazon Vietnam’s China-backed growth defies global tech slowdown

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While declining to give country-specific sales, Seong said the number of local exporters using Amazon in Vietnam grew 80% in the 12 months to August. Sales by those exporters also grew faster in 2022 than in 2021, the company said.

Gijae Seong, head of Amazon Global Selling in Vietnam, said the local division has grown faster this year than in 2021, despite the company reporting a $2.5 billion third-quarter operating loss for its international segment last week.

Southeast Asia is already the fastest-growing e-commerce market in the world, and Vietnam will lead that expansion through 2026, Seong added.

But he also acknowledged the “double challenge” posed by the rise in interest rates and the decline in shopping from home as people try to “return to their normal lives,” according to COVID.

“We’re struggling. I think everyone is struggling this year,” Seong told reporters in Ho Chi Minh City.

Asked by Nikkei Asia about the impact of companies moving out of China, Seong described two benefits for Amazon.

First, he said, merchants and service providers coming to the country are raising standards and offering lessons to Vietnamese partners by drawing on a decade of experience in China’s larger online market. Second, Chinese e-commerce sellers ship from Vietnam, which increases export volume, providing an incentive to invest in the country’s logistics, he said.

Much news has focused on the relocation of factories from China across the border to Vietnam in light of U.S.-China tensions and COVID disruptions. Amazon’s comments highlight how this trend may impact other areas, in this case the online marketplace.

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