Illustrative photo (Source: onlinefriday.vn)

Hanoi (VNA) – The Central Institute for Economic Management (CIEM) held a conference on November 28 to discuss measures to develop e-commerce.

CIEM Director Nguyen Dinh Cung said e-commerce has high potential amid Industry 4.0, thus the development of e-commerce is an obvious necessity.

He said the centre is consulting other agencies to set up a national innovation and development centre.

Nguyen Anh Duong, head of the CIEM’s Department of Macro-Economy, said domestic and international e-commerce activities of Vietnam are increasing with larger scale.

A series of free trade agreements have facilitated the activities, along with higher awareness of e-commerce and Industry 4.0, higher purchasing demand of people, widespread online shopping and higher foreign direct investment in the field.

A report from the Policy Office of the Department of E-Commerce and Digital Economy under the Ministry of Industry and Trade showed the online retail market rose more than 20 percent per year.

Last year, Vietnam’s retail market reached 6.2 billion USD, with e-commerce revenue of 3.6 percent over total retail value. In 2020, the e-commerce market is expected to hit 10 billion USD.

Le Thi Ha from the office said the e-commerce market in 2013-2017 rose rapidly. E-commerce has become more common due to diverse forms and stronger engagement.

At the same time, e-commerce on mobile devices has become popular, she said, adding the sector is a target for large firms.

However, Ha pointed to problems in e-commerce management, including the control of quality of goods and trans-national transactions.

Meanwhile, Duong said the sector’s management mechanisms aren’t suitable, while the infrastructure has yet to be systemised.

The CIEM proposed the completion of institutions and policies for the development and application of digital economy, and the establishment and operation of infrastructure for e-commerce, and support to the digital transformation of enterprises.

Representatives from the Ministry of Industry and Trade highlighted the need to revise the Law on Commerce 2005 with new regulations on e-commerce.-VNA