E-commerce is regarded as the most effective means for businesses to promote its products with low cost. According to Department of E-commerce and Information Technology, almost all Vietnamese businesses are applying e-commerce successfully.
According to Ministry of Industry and Trade (MoIT), businesses at all levels are developing quite fast e-commerce. Excluding Ho Chi Minh City and Hanoi, 53 percent of businesses in other parts are applying information technology. Most of businesses use Internet with wide band ADSL, 3G.
Mr Lukas Mira, Director of Cimigo Market Survey Company said that in the last 10 years, Vietnam set the record in using Internet in the region. According to official statistics, 31 percent of the population use Internet and Internet users increase 2-3 million a year.
Internet is most popular with e-commerce website on products and services. Leading in the field are airlines, tourism and supermarkets especially with products and services as air tickets, electronics, cell phones, computers, books, tourist tours, hotels, perfumes and flowers. Delivery and payment methods are also flexible meeting the demand of customers by on line payment or remittance, from the time of order to the receipt of commodities.
According to Mr Dinh Duc Thu, Director of VDC Online Company, there are currently some 9,300 webpage of B2C in Vietnam with turnover of US$450 million or 0.5 percent of GDP. As regards B2B form, some 3,000 businesses are participating with turnover of some US$1.5 billion. The total turnover of e-commerce in last year was 2.5 percent of GDP of Vietnam.
The most significant success in the application of e-commerce is the increase in the use of software for business activities. Most of businesses use accounting software and many also use software for personnel management, supply chain and customer’s management. The application has increased the efficiency in production and business activities. Furthermore, businesses also use online public service provided by State organizations.
The efficiency is most remarkable as expenses for e-commerce and information technology is only 5 percent of the total cost while its turnover increases by 33 percent. Some businesses reserve 28 percent of their purchasing expenses for e-commerce.
Mr Lukas Mira also added that in addition to specialized e-commerce website, there are a big number of social networks with hundred thousands of participants. Evidently, it is a real market for businesses. Many have invested in topics and locations for promotion of products and services. Sellers and customers can negotiation topics then products and services can be sold in flexible way acceptable to consumers.
In areas requiring high technology of e-commerce namely stock markets and online public services, significant progress has been recorded in e-C/O (Certificate of Origin) by Ministry of Industry and Trade, e-customs pilot project by Ministry of Finance. 18 provinces and cities have provided online public services including business licenses, permits for establishing representative’s offices and FDI enterprises.
VIB Forum would like to introduce voices of experts on how to further develop e-commerce in Vietnam.
MoIT will facilitate the development of e-commerce
Mr Le Danh Vinh, Standing Vice Minister of MoIT, Chairman of Vietnam E-Commerce Association (VECOM)
Though Vietnam e-commerce has been developed, its role and application upgraded, it still lags behind the development of e-commerce in the world. In the coming years, MoIT will promote e-commerce, developing its successes, overcoming shortcomings and reaching a new height.
According to e-commerce development plan for 2011-2015, prior to 2013, 80 percent of online public services will be at Grade 3 for import-export, e-customs and taxation. By 2014 online Grade 3 upward will be 50 percent in trade and business activities. And in 2015, 40 percent will be at Grade 4 in import-export, and 20 percent in trade and business activities.
Assisting businesses in e-ecommerce
Mr Luong Van Tu, Former Chairman of VECOM
Though with fast development, Vietnam e-commerce remains a bit over the average in the world. Since 2007, VECOM has developed several activities such as consultancy, advisory on e-commerce policy and law, promotion of e-commerce cooperation at home and abroad.
There are, however, some barriers to e-commerce such as unrealistic legal documents and applications, inefficient supervision and absence of dispute settlement. E-commerce remains a new area and needs combination between commerce and technology. Therefore, in initial stage, it is important to increase awareness of businesses and later on help them develop their interests in online transactions. The State should also develop e-receipt to ensure transparency in e-commerce.
E-commerce policy and legal framework promoted
Mr Tran Huu Linh, Deputy Director, Department of E-commerce and IT( MoIT)
Before 2004, there were no legal documents on e-commerce. Until 2006, an e-transaction law was promulgated. By now, there are several legal documents and laws such as regulations on management of e-commerce website and digital signatures.
Besides developing policy and legal framework, an important task of the Department of E-commerce and Information Technology – MoIT is to apply e-commerce in business activities. In the coming years, we will increase our assistance so that businesses can develop e-commerce in their conditions.
Huong Ly
Vietnamese
