How USAID is Supporting Vietnamese Businesses to Embrace E-Commerce
Nguyen Van Ba grew up in a family that produced and sold vermicelli, a thin rice noodle eaten in Vietnam for centuries. In 2007, he expanded the family business and founded the Viet Cuong Vermicelli Cooperative in Thai Nguyen province.
In noodle production they use chemicals to make the vermicelli white. I made a small batch without the use of chemicals, just for my family and friends. I found the quality to be very good and decided to sell it. - Nguyen Van Ba
The cooperative initially was producing traditional vermicelli by adding chemicals to make the noodles white. Ba wanted to make a healthier product, free of additives, so he began making vermicelli from non-traditional ingredients like arrowroot, sweet potatoes, and cassava, creating what would become the cooperative’s signature product, a healthier brown noodle.
Despite the risk of alienating customers with a new type of vermicelli noodle, the cooperative grew to producing 300 tons of specialty noodles a year at its two-hectare facility, with annual sales of 30 billion VND ($1,179,000). The cooperative employs 30 full-time workers, of which 70% are women.
Initially, the cooperative marketed its products through supermarkets and local distributors, but Ba saw untapped potential in online sales, a market they had only had minimal success in. They did have a website, but lacked an online store and did not have the skills or confidence to jump into e-commerce.
Learning about USAID’s support for small and growing businesses, Ba and other members of the cooperative participated in USAID's Market Expansion through E-Commerce training where they received training in online sales, communications, and how to access international markets, gaining crucial insights on leveraging e-commerce and digital promotion.
Armed with these new skills, the cooperative transformed its online presence, improving their visuals, logos, and product information. They began actively promoting their products on Facebook and on popular e-commerce platforms. The impacts of these changes were profound. Employees felt more confident and proficient in marketing, engaging with customers through e-commerce markets, social media, and fan pages. Orders surged, and sales increased by 30%. The cooperative expanded its operations, reaching new international markets, including the United States and in the Middle East. With increased revenue, all employees received a 20% increase in salaries and the cooperative hired five more employees.
“We have used USAID’s support to improve the lives of ethnic minorities here and created many jobs in the community as well as creating healthy products.” - Nguyen Van Ba
Viet Cuong Vermicelli Cooperative’s growth has had a ripple effect on the local community, creating stable jobs and increasing incomes while improving the quality of life for the 400 local farmers who provide the raw materials for noodles. The success of Viet Cuong is an example of progress for small businesses, demonstrating the transformative power of strategic planning and modern sales channels for small cooperatives.
Small and growing businesses are essential to Vietnam’s economic growth, accounting for more than 90% of the private sector and contributing to 40% of GDP. USAID works with small and growing businesses, providing customized training programs, one-on-one coaching, and business-to-business linkages to expand economic opportunities in Vietnam.
USAID supports economic growth in Vietnam by removing constraints faced by these businesses, focusing on expanding their access to supply chains and financing. This includes fostering Vietnam’s transition to a knowledge economy through technological innovation, digital transformation, and developing a highly-skilled digital workforce.
As its market reach continues to expand, the cooperative stands as an inspiration for small cooperatives and communities in Vietnam and beyond, symbolizing resilience and the pursuit of dreams. Viet Cuong’s journey highlights the impact of embracing e-commerce tools, underscoring how digital innovation can drive growth, contributing to rural development and a sustainable local economy. In the next five years, the cooperative’s goal is to expand into more international markets through online sales and increase the capacity of the factory. They have plans to make new products to spread the unique flavor of the Viet Cuong Vermicelli Cooperative’s noodles to more people around the world.
By 2025, USAID will have assisted over 3,500 small and growing businesses and 50 business support organizations, resulting in a 20% increase in sales revenue for the majority of businesses that received training, including at least 370 firms acquiring new customers or increasing sales to current customers in regional or international markets. This is facilitating Vietnam’s transition to a more competitive economy that prizes technological innovation and entrepreneurship.
ABOUT THE AUTHOR: Benjamin Ilka is a storyteller and visual media specialist at USAID’s Mission in Vietnam.
