Last updated: Thursday, April 27, 2017
Vietnamese SMBs to Invest Strongly in E-commercePosted: Wednesday, March 08, 2017
On March 7, in an effort to support small and medium sized businesses (SMBs) to enhance their knowledge of the value of e-commerce, the Vietnam E-Commerce Association (VECOM) in collaboration with the Industry and Trade Department of Dong Nai province organised a training seminar named “New trends in online business” in Bien Hoa city, Dong Nai province.
Aiming at providing local SMBs an overview of e-commerce, its immense growth potential as well as its value, and introducing the effective tools to create an online business, the seminar has drawn the attention of hundreds of SMB participants, including members of key business associations in Dong Nai and neighbouring provinces.
According to Vietnam E-Commerce Report 2015, 43% of businesses recorded higher revenue by utilizing e-commerce. Vietnam has a population of over 95 million among which 51.5% are connected to the Internet. 62% of Internet users at least once shopped online in 2015 and the average online spending per person is US$160. This clearly shows the great potential of Vietnam for developing online business and e-commerce. In particular, the growth rate of e-commerce in Vietnam has reached 22% per year.
In contrary to the strong developing trend of e-commerce, many SMBs in Vietnam seem neglected. In fact, only 20% of them have their own websites for business promotion. Meanwhile, 70% of consumers are reported to search online for information before going to brick-and-mortar store to buy the products. Then, if businesses don’t have a website and online brand, consumers will find it difficult to find their products and services, especially when Vietnamese consumers place most confidence in advertisements on search metrics, and then social networks, online video and banners.
Speaking at the event, Mr Nguyen Ngoc Dung, Vice President of VECOM said: “Building websites is the first move to enter e-commerce and the domain name you choose for your website is not simply an address on the Internet but closely attached to the enterprise’s operation and brand. It contributes a great deal in business’s reputation and credibility”.
“Choosing the right domain name is the first step towards building a successful and credible online presence. Once a business has an official online presence by owning a standard domain name, it has ensured its high visibility towards customers every time and everywhere. The selection of domain name should be associated with the business development strategies of the enterprise. In particular to businesses targeting in global market, .com is always trusted thanks to its availability, credibility and stability in over 18 years”, stated Mr Doan Quoc Tam, CEO of FTC Media.