Sustainable e-commerce will create a healthy business environment and provide the best services and products for users, thereby contributing to the growth of the digital economy. — Photo courtesy of RMIT University Vietnam RMIT University Vietnam researchers Associate Professor Pham Cong Hiep and Dr NguyenNhat Minh said e-commerce is entering a new stage of development.
“Following the turbulent COVID-19 period, Vietnam’s e-commerce sector is nowconcentrating on developing and putting into practice sustainable developmentstrategies,” Hiep said.
Minh said: “Sustainable e-commerce will create a healthy business environmentand provide the best services and products for users, thereby contributing tothe growth of the digital economy.”
The duo said there are four areas of focus for e-commerce to developsustainably: the business model, infrastructure, high-quality and digital-savvyhuman talent, and new technologies to improve customer experience.
Building a sustainable business model based on the environmental, social andgovernance framework would become indispensable for e-commerce firms, and wouldhelp them gain a clear vision and growth direction in the digital era, theysaid.
Companies should continue to enhance the value of products and services byusing sustainable practices and based on an in-depth understanding of consumersgained from the application of technology.
“It is equally important to develop a sustainable e-commerce eco-system toenhance core services and value offering capabilities, particularly in keyareas such as supply chain and digital payment,” Hiep said.
“At the same time, firms are well advised to adopt sustainable practices infinancial management to oversee, optimise and protect their assets, revenuesand financial resources.”
He said investment in infrastructure has been a major focus for businesses,especially installation and upgrade of software systems for data management andmining, automation, cloud, and artificial intelligence.
“Information security is a critical priority to improve sustainable developmentin e-commerce.
“Having efficient logistics is also crucial to foster end-to-end connectionthroughout the supply chain and enhance customers’ shopping experience.”
Logistics costs account for an estimated 10-20 per cent of the final productprices, and so businesses could look to cutting-edge technologies such asmachine learning, artificial intelligence, the Internet of Things, andblockchain to optimise costs, he said.
“Tech application can also provide low-carbon solutions and increasedefficiency in transportation and post-delivery operations such as exchange andreturn.”
Minh highlighted the gap between the quantity and quality of the e-commerceworkforce and the market demand.
“More universities and colleges should include e-commerce modules in majorssuch as business administration, management information systems, informationtechnology, digital marketing, finance and banking, logistics and supply chainmanagement.
E-commerce businesses should build a talent development and management modelthat ensures diversity, equality and inclusion, he said.
“Increased investment in specialised training for technology, leadership,collaboration, and creative problem-solving skills is also a good idea.”
The rise of e-commerce coincides with the rise of a new generation ofconsumers, Gen Z, with their distinctive attributes leading to significantchanges in the shopping journey, he said.
“Consumers now shop more smartly. They look for more refined experiences andhigher value instead of just price discounts. They are also increasinglyseeking eco-friendly products.
“E-commerce businesses should boost investment in tech for each touchpointthroughout the customer's shopping journey. That’s one way they can gaincustomer loyalty for the long term.”
The 2022 e-Conomy SEA report by Google, Temasek and Bain & Company had saidVietnam’s digital economy was on course to grow to 49 billion USD by 2025 –from 23 billion USD in 2022 – largely thanks to a booming e-commerce sector,making it Southeast Asia’s fastest growing digital economy.
Forecasting a compounded annual growth rate of 37% between 2022 and 2025 forthe country’s e-commerce sector, it added that by 2025 it would hit 32 billionUSD, or 65% of the entire digital economy./.
VNA
