Development Trend of E- commerce in Vietnam

Vietnam's global economic integration will become profound and comprehensive at the joining of the WTO at the end of 2005 or in 2006 and will create a favourable environment for the development of e-commerce. In particular, both the National Assembly and Government are determined to establish an advantageous legal environment for e-commerce. E commerce became established in Vietnam between 2001 and 2005. The E-commerce Department under the Ministry of Trade estimates the next five years will see a strong development of e-commerce in Vietnam.

According to the Deputy Trade Minister Le Danh Vinh, enterprises that have good partnerships with foreign partners will be pioneers in encouraging e-commerce in Vietnam. Besides, small and medium enterprises need Government support to acquire advanced applications of e-commerce effectively. Trade transactions B2B (Business to Business) will gradually gain advantage over others. Mr. Vinh said, although the chance of developing e-commerce in Vietnam is very optimistic, there are also many challenges such as the lack of human resources for e- commerce, an under developed ICT infrastructure and particularly the unformed legal environment and policies. In fact, most enterprises only hear of e-commerce but do not know about its benefits and the conditions for joining e- commerce. Indeed, the e- commerce concept is still strange to the majority of the public. Very few enterprise leaders and management officials have any basic knowledge of e-commerce and human resources for applying, exchanging and developing and the business skills of e-commerce. Additionally, dispute settlement in e-commerce is unformed.

According to the Ministry of Trade’s E-commerce Department, Vietnam should set four main targets to develop e-commerce:

- About 70 per cent of large enterprises to conduct B2B transaction and apply e- commerce at a high level.

- About 90 per cent of small and medium enterprises to gain e- commerce benefits and apply e- commerce at a given level.

- About 15 per cent of households and individuals to have the habit of shopping online (B2C).

- All Government contracts and purchases to be announced on the Government’s websites and 30 per cent the Government’s purchases to be conducted online.  

Deputy Minister Le Danh Vinh said, the four targets will be obtained if the six major policies are implemented:

- Launch a strong and consistent campaign of propaganda and training on e-commerce .

- Create a favourable environment for e-commerce with adequate and comprehensive promulgation of legal documents relating to e- commerce.

- All levels of Government agencies to be pioneers in supporting and applying e- commerce.

- Develop the technological infrastructure for e-commerce based on technology exchanges with foreign countries.

- Organise the implementation of legal regulations relating to e-commerce resolutely and timely.

- Actively participate in the international cooperation of e-commerce and relevant issues such as free trade and non- document trade.

The target of plan by 2010 is for e-commerce to raise competitive capacity owing to the strong application of e-commerce and the clear, effective public services provided online by Government offices. Many concrete programmes and projects are to be deployed based on the six policies. Each will be carried out by one office with close coordination with others. The expense for programmes and projects is mainly mobilised from society and annual budgets for Government offices. However, Government should establish an E-commerce Development Fund from Government budgets to support projects, which do not belong to a concrete office’s jurisdiction or which need small investment but strongly promote the application of e- commerce.

• Kim Phuong