Omnichannel distribution helps Vietnamese businesses expand market reach

On October 22, the Vietnam Trade Promotion Agency held a workshop in Hanoi to explore how businesses can adapt to shifting trade, distribution, and consumer behavior. Le Hoang Tai, deputy director general of MoIT, stressed that relying on a single sales channel is no longer sufficient. Businesses must connect physical stores with online shops, expand touchpoints, and improve efficiency to stay competitive.

However, many SMEs continue to grapple with challenges such as building integrated technology systems, managing customer data, logistics, and sales strategies. Tai emphasized that collaboration between the government, industry associations, and digital platforms is crucial for providing market information and facilitating online and offline business connections.

Bui Quang Tuan, vice chairman of the Vietnam Economic Association, argued that digitalisation should be seen as a driver of competitiveness, not just a way to boost online sales. Diversifying sales channels is vital for risk management, ensuring stable production and operations. A survey of 1,300 businesses revealed that 60% cited high technology investment costs, 45% struggled with a lack of in-house personnel, and 38% reported limited leadership commitment as major barriers to digital transformation.

To overcome these hurdles, businesses need to enhance their internal digital transformation capabilities, train staff, and integrate data systems. They should also develop integrated distribution channels, digital branding, logistics, and cross-border e-commerce. Building a shared-service ecosystem and promoting cooperation among various stakeholders is also essential for supporting this transition.

While expanding sales outlets is important, it's equally crucial to focus on improving market access, controlling distribution costs, ensuring timely replenishment, and retaining customers. Distribution should be viewed as a network connecting traditional markets, supermarkets, convenience stores, agents, digital platforms, and delivery services.

Vietnam's merchandise exports reached $434 billion in the first nine months of 2026, up 24.5% year-on-year. However, foreign-invested enterprises contribute around 80% of total export turnover, with domestic businesses contributing $83.89 billion. Strengthening the export capabilities of domestic businesses and deepening their links with foreign-invested enterprise supply chains is necessary to expand international market opportunities amidst geopolitical volatility and rising transportation costs.