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 Nguyen Nhat Minh said e-commerce is entering a new stage of development.
“Following the turbulent COVID-19 period, Vietnam’s e-commerce sector is now concentrating on developing and putting into practice sustainable development strategies,” Hiep said.
Minh said: “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.”
The duo said there are four areas of focus for e-commerce to develop sustainably: the business model, infrastructure, high-quality and digital-savvy human talent, and new technologies to improve customer experience.
Building a sustainable business model based on the environmental, social and governance framework would become indispensable for e-commerce firms, and would help them gain a clear vision and growth direction in the digital era, they said.
Companies should continue to enhance the value of products and services by using sustainable practices and based on an in-depth understanding of consumers gained from the application of technology.
“It is equally important to develop a sustainable e-commerce eco-system to enhance core services and value offering capabilities, particularly in key areas such as supply chain and digital payment,” Hiep said.
“At the same time, firms are well advised to adopt sustainable practices in financial management to oversee, optimise and protect their assets, revenues and financial resources.”
He said investment in infrastructure has been a major focus for businesses, especially installation and upgrade of software systems for data management and mining, automation, cloud, and artificial intelligence.
“Information security is a critical priority to improve sustainable development in e-commerce.
“Having efficient logistics is also crucial to foster end-to-end connection throughout the supply chain and enhance customers’ shopping experience.”
Logistics costs account for an estimated 10-20 per cent of the final product prices, and so businesses could look to cutting-edge technologies such as machine learning, artificial intelligence, the Internet of Things, and blockchain to optimise costs, he said.
“Tech application can also provide low-carbon solutions and increased efficiency in transportation and post-delivery operations such as exchange and return.”
Minh highlighted the gap between the quantity and quality of the e-commerce workforce and the market demand.
“More universities and colleges should include e-commerce modules in majors such as business administration, management information systems, information technology, digital marketing, finance and banking, logistics and supply chain management.
E-commerce businesses should build a talent development and management model that 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 of consumers, Gen Z, with their distinctive attributes leading to significant changes in the shopping journey, he said.
“Consumers now shop more smartly. They look for more refined experiences and higher value instead of just price discounts. They are also increasingly seeking eco-friendly products.
“E-commerce businesses should boost investment in tech for each touchpoint throughout the customer's shopping journey. That’s one way they can gain customer loyalty for the long term.”
The 2022 e-Conomy SEA report by Google, Temasek and Bain & Company had said Vietnam’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 for the country’s e-commerce sector, it added that by 2025 it would hit 32 billion USD, or 65% of the entire digital economy./.
VNA
