A person hunts for sales online during Black Friday (Photo: VNA) Hanoi (VNA) - Vietnam is one of the world’s fastest growinge-commerce countries, said Lai Viet Anh, deputy director of Vietnam E-commerceand Information Technology Agency (Vecita) under the Ministry of Industry andTrade.
“The country’s e-commerce market is growing35 percent per year, 2.5 times faster than Japan,” Anh said.
Vietnamese businesses capable of takingadvantage of the internet and technology grow 2.1 times faster than others.Small and medium enterprises (SMEs) that spend more than 30 percent of theirbudget on technological innovation grow nine times faster than those spendingless than 10 percent.
Anh told the Vietnam Business Forum 2017,themed “E-commerce Solutions for the Success of Businesses,” held in Hanoi lastweek that Vietnam’s e-commerce retail sales growth in 2016-20 is estimated at20 percent per year and the country’s total retail e-commerce sales would reach10 billion USD by 2020.
In 2017, e-commerce retail sales haveexpanded by 25 percent and will become an important part of Vietnam’se-commerce sector. E-commerce is widely considered the buying and selling ofproducts over the internet. E-commerce is subdivided into three categories:business to business (B2B), business to consumer (B2C) and consumer to consumer(C2C) also called electronic commerce.
“E-commerce is expected to become animportant infrastructure of Vietnam’s trade sector,” she added.
However, e-commerce has seen some barriersthat deter its sustainable development, including low consumer trust inproducts and services and concerns over online payment security.
In addition, most Vietnamese e-commercewebsites provide only basic services, such as information about products andmodes of payment. Services such as digital marketing optimisation andconnecting online with offline sales need to be added.
Anh said retailers should not only createand operate websites, but also have an overall business trading system – fromproduction, marketing and order management to transport and delivery services –to successfully participate in the e-commerce sector.
Le Hai Binh, vice chairman of VietnamE-commerce Association (VECOM), said the country’s IT infrastructure wasfavourable for e-commerce development.
Nguyen Quynh Nga, deputy director of theSME Department under Orient Commercial Joint Stock Bank (OCB), said one of themain barriers for SMEs was guaranteed assets. In addition, unclear financialreports and unsuitable business plans also made connections between banks andSMEs become more difficult in developing e-commerce.
Nga said the participation of SMEs in theglobal supply chain was limited as the added value was low despite high exportturnover. This was the reason that banks needed to have special products andservices in the long-term period to support SMEs.
“SMEs have been a potential market segment,thus requiring banks to have special access,” she added.
Do Phi Long, director of a companyspecialising in consumer goods trading and distribution was quoted by onlinenewspaper dantri.com.vn as saying that trading through e-commerce channels wasnot less expensive compared with the traditional ways of selling goods.
Long said his company posted products one-commerce websites. This way of selling had advantages of reducing managementand human resources costs, even as information on products was readilyavailable to customers.
However, there were shortcomings, such ashigh costs paid to e-commerce websites and risks of cancelled orders bycustomers, he said, adding that there was no penalty mechanism for peoplecanceling orders.
He said e-commerce had brought a newselling channel for businesses, parallel with the traditional ways and removedintermediaries. Growth in sales was seen, however it wasn’t strong.
The director added that most peopleshopping online were young and with white-collar jobs. It was hard to encouragethe middle-aged to shop online although they had a high income.
He suggested that the Government enhanceits management role by tightening goods information provided by retailers. Headded there was a lack of accurate information when shopping online, especiallyon Facebook.
It was this chaoticdissemination of information that led to a lack of trust among consumers’ whenshopping online, preventing e-commerce development.-VNA
“The country’s e-commerce market is growing35 percent per year, 2.5 times faster than Japan,” Anh said.
Vietnamese businesses capable of takingadvantage of the internet and technology grow 2.1 times faster than others.Small and medium enterprises (SMEs) that spend more than 30 percent of theirbudget on technological innovation grow nine times faster than those spendingless than 10 percent.
Anh told the Vietnam Business Forum 2017,themed “E-commerce Solutions for the Success of Businesses,” held in Hanoi lastweek that Vietnam’s e-commerce retail sales growth in 2016-20 is estimated at20 percent per year and the country’s total retail e-commerce sales would reach10 billion USD by 2020.
In 2017, e-commerce retail sales haveexpanded by 25 percent and will become an important part of Vietnam’se-commerce sector. E-commerce is widely considered the buying and selling ofproducts over the internet. E-commerce is subdivided into three categories:business to business (B2B), business to consumer (B2C) and consumer to consumer(C2C) also called electronic commerce.
“E-commerce is expected to become animportant infrastructure of Vietnam’s trade sector,” she added.
However, e-commerce has seen some barriersthat deter its sustainable development, including low consumer trust inproducts and services and concerns over online payment security.
In addition, most Vietnamese e-commercewebsites provide only basic services, such as information about products andmodes of payment. Services such as digital marketing optimisation andconnecting online with offline sales need to be added.
Anh said retailers should not only createand operate websites, but also have an overall business trading system – fromproduction, marketing and order management to transport and delivery services –to successfully participate in the e-commerce sector.
Le Hai Binh, vice chairman of VietnamE-commerce Association (VECOM), said the country’s IT infrastructure wasfavourable for e-commerce development.
Nguyen Quynh Nga, deputy director of theSME Department under Orient Commercial Joint Stock Bank (OCB), said one of themain barriers for SMEs was guaranteed assets. In addition, unclear financialreports and unsuitable business plans also made connections between banks andSMEs become more difficult in developing e-commerce.
Nga said the participation of SMEs in theglobal supply chain was limited as the added value was low despite high exportturnover. This was the reason that banks needed to have special products andservices in the long-term period to support SMEs.
“SMEs have been a potential market segment,thus requiring banks to have special access,” she added.
Do Phi Long, director of a companyspecialising in consumer goods trading and distribution was quoted by onlinenewspaper dantri.com.vn as saying that trading through e-commerce channels wasnot less expensive compared with the traditional ways of selling goods.
Long said his company posted products one-commerce websites. This way of selling had advantages of reducing managementand human resources costs, even as information on products was readilyavailable to customers.
However, there were shortcomings, such ashigh costs paid to e-commerce websites and risks of cancelled orders bycustomers, he said, adding that there was no penalty mechanism for peoplecanceling orders.
He said e-commerce had brought a newselling channel for businesses, parallel with the traditional ways and removedintermediaries. Growth in sales was seen, however it wasn’t strong.
The director added that most peopleshopping online were young and with white-collar jobs. It was hard to encouragethe middle-aged to shop online although they had a high income.
He suggested that the Government enhanceits management role by tightening goods information provided by retailers. Headded there was a lack of accurate information when shopping online, especiallyon Facebook.
It was this chaoticdissemination of information that led to a lack of trust among consumers’ whenshopping online, preventing e-commerce development.-VNA
VNA
