Great potential but missed opportunities

In recent years, the concepts of ‘digital transformation’ and ‘e-commerce’ have become familiar to many people. With just a smartphone connected to the internet, anyone can access vast markets, sell products nationwide, and even reach international buyers. However, for ethnic minorities and highland communities, this remains a significant challenge. Despite having unique products rich in cultural identity that could potentially access larger markets through digital technology, most local people still rely on traditional sales methods and struggle to find stable outlets for their products.

This raises the question: Why has such an effective tool like digital platforms not been fully utilized to support economic development in these communities? It is crucial to introduce specific solutions to help them harness the potential of digital platforms, enhance their income, and improve their economic conditions.

Ethnic minority communities still struggle with traditional selling methods – Photo: Ngoc Hoa

It is undeniable that ethnic minority and highland communities possess high-value products, ranging from clean agricultural goods like macadamia nuts, Shan Tuyet tea, wild honey, and precious medicinal herbs to handicrafts, such as brocade fabrics, bamboo and rattan products, and traditional ceramics. These items not only hold economic value, but also embody unique cultural identities, attracting market interest.

However, instead of reaching consumers directly, most of these products still pass through traders or intermediary distribution channels. As a result, the true value of these products is not optimized. Local people sell at low prices while the final retail prices for consumers are significantly marked up.

One of the key reasons preventing local people from accessing digital platforms is their limited knowledge and technology skills. Most highland residents are accustomed to selling directly at traditional markets or through personal connections. Using a smartphone to take product photos, post sales ads, or respond to online customers is still unfamiliar. Many people do not even have bank accounts, let alone using e-wallets or online payment methods.

Moreover, the challenges are not just about technology unfamiliarity, but also infrastructure and logistics barriers. In many remote areas, mobile and internet coverage is still inadequate, making it difficult to access online platforms. Additionally, with rugged mountainous terrain and underdeveloped transportation networks, moving goods from villages to distribution centers is costly and time-consuming. Some perishable agricultural products require proper storage, but cold storage facilities and suitable transport options remain insufficient. This makes it difficult for local people to bring their high-quality products to the market efficiently.

Opportunity for change?

Amid these challenges, digital platforms emerge as a promising solution to break longstanding barriers and open up sustainable economic development opportunities for highland communities in the digital age.

A prime example of leveraging digital platforms for successful business is Pham Thi Phuong Mai, also known as Mai Tay Bac (Mai from the Northwestern region). Originally from Hai Duong, she chose to settle in the highlands of Lao Cai and used social media not only to grow her own business, but also to help local farmers sell their agricultural products effectively.

Pham Thi Phuong Mai (left) has successfully helped farmers sell their agricultural products through digital technology – Photo: Ngoc Hoa

Speaking with Vietnam Economic News, Mai shared that in 2021, upon realizing the difficulties highland farmers faced in selling their products, especially ground ginseng, she decided to use TikTok and Facebook for promotion. Instead of merely listing products for sale, she told stories about the lives, culture, and people of the Northwestern region, creating a close connection with customers. Thanks to this innovative approach, her TikTok channel ‘Mai Tay Bac’ quickly attracted over half a million followers, with millions of likes and interactions.

Through digital platforms, Mai not only built a successful business, but also helped many highland farmers secure stable markets for their products. To date, her TikTok channel has gained over 540,000 followers and more than 8.2 million likes. Beyond sales, she actively participates in the harvesting and processing stages to ensure product quality and build customer trust.

“Utilizing digital platforms not only helps expand the market, but also enables local people to build their own brands. Previously, many ethnic minority products, despite their high quality, were not widely known due to a lack of promotion. Now, with the support of social media and e-commerce platforms, they can introduce their products more professionally. Platforms like Facebook, TikTok, Shopee, and Lazada are invaluable tools helping products reach customers,” Mai emphasized.

According to Mai, for digital platforms to truly become useful tools for highland communities, a coordinated strategy from multiple stakeholders is necessary. First, government agencies and support organizations should provide digital skills training, helping local people learn how to use smartphones, create sales accounts, take appealing product photos, write engaging descriptions, and consult customers online. These training programs should be conducted regularly with the participation of experienced e-commerce professionals.

At the same time, stronger investment in network infrastructure and logistics is needed. Technology and telecommunications companies can collaborate with authorities to improve internet connectivity in remote areas. Additionally, suitable transportation solutions, such as cooperative transport models or subsidized delivery costs for highland specialty products, should be developed.

“Another crucial factor is financial incentives and support policies. The Government should consider preferential loan programs to help local people invest in online sales equipment. E-commerce platforms could also reduce transaction fees, making it easier for highland sellers to promote their products,” Mai suggested.

Promoting digital platforms is not just an economic solution, but also a sustainable approach to improving the livelihoods of ethnic minorities and highland communities, helping them break free from the cycle of selling through intermediaries. Technology has transformed how the world operates, and if leveraged effectively, it can also change the lives of highland residents.

However, achieving this goal is not solely the responsibility of local people. It requires a collective effort from society, including the Government, businesses, and support organizations, to help them confidently and effectively integrate into the digital economy. This is not just an opportunity but a critical necessity to ensure sustainable development in the modern era.