Potential and Development Trends of E-commerce in Vietnam

large revenue in the future. Social awareness of e-commerce has changed.

However, there are still many problems in the development of e-commerce such as: imbalance in types. Specifically, in the world, 90-95% of the value of e-commerce is from the B2B type, the B2C type and other types only account for less than 10%, but in Vietnam, the opposite trend is happening . 24 On the other hand, B2B transactions in Vietnam currently only stop at the level of businesses searching for market information, partners through the Internet and e-commerce trading floors, while the effectiveness of this method is still unclear.

In addition, the transmission system is not yet synchronized, online payment is difficult, network security and information security are still weak, and the electronic data interchange (EDI) system is not yet complete, causing the application of e-commerce to not have in-depth development steps, and online transactions have not been thoroughly implemented.

From the current state of e-commerce development in our country, it can be seen that the necessary conditions for the strong development of e-commerce in Vietnam have been established. We believe that from 2006, e-commerce in our country will enter a new stage of development with more specific and greater contributions to trade, especially the export of goods and services.

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24 Link http://www.giaiphaptructuyen.net/index.php?s=nd&pid=19&wid=490&pg=2 ,

Date accessed 9/15/2006

CHAPTER III: DIRECTIONS AND SOLUTIONS FOR SUSTAINABLE DEVELOPMENT OF E-COMMERCE IN VIETNAM

I. Directions for e-commerce development in Vietnam

1.1 Perspectives on e-commerce development in Vietnam

 E-commerce contributes significantly to trade growth and enhances business competitiveness.

 Enterprises are the core force in application and development.

 The State plays a role in creating a favorable legal environment and policy mechanisms, and at the same time providing public services to support e-commerce activities.

 E-commerce development needs to be closely linked with the application and development of information and communication technology.

 Actively cooperate to attract technology.

1.2 Goals of e-commerce development in Vietnam:

The master plan for e-commerce development in the 2006-2010 period, approved by the Prime Minister under Decision No. 222/2005/QD-TTg on September 15, 2005, sets out four main goals for e-commerce in the next five years:

 About 60% of large-scale enterprises conduct B2B e-commerce transactions

 80% of Vietnamese enterprises understand and apply e-commerce (B2C, B2B types)

 10% of households and individuals shop online (C2B, C2C types)

 Government procurement bids are published on the websites of government agencies and on e-commerce applications in government procurement (B2G).

1.3 Directions for e-commerce development in Vietnam:

The direction of e-commerce development in Vietnam must be part of the socio-economic development strategy in our country. Sustainable e-commerce development must first develop the economy, promote the cause of industrialization and modernization of the country, and accelerate the process.

international economic integration. The above factors are both conditions and needs for e-commerce development.

Some options for development direction:

 Let e-commerce develop sequentially according to the economic development process. Vietnam lacks most of the infrastructure for e-commerce, e-commerce must wait until the time is ripe to develop. Thus, this approach is passive, causing e-commerce to develop slowly, not knowing how to take advantage of scientific advances to take shortcuts, not really promoting internal strength for development.

 Focus on investing quickly in e-commerce. The state invests in building infrastructure, businesses must quickly open websites and conduct online sales. This approach of rushing will easily lead to failure. E-commerce is not simply about purchasing IT equipment, connecting to the network and opening a website. It requires businesses to build an approach roadmap depending on the industry, market potential and capacity. If businesses rush into e-commerce without developing infrastructure, they will not be successful.

 Develop step by step, both building and perfecting the foundation of e-commerce and developing e-commerce. This approach demonstrates respect for the objective laws of the process of forming and developing e-commerce, while demonstrating subjective efforts to accept new technology to develop business forms and proactively integrate.

Thus, the general direction for e-commerce development in Vietnam is:

 Focus on developing legal infrastructure for e-commerce

 Synchronous development of technical infrastructure

 Strengthen education, raise awareness of e-commerce, and prepare human resources.

 Encourage the implementation of e-commerce at all levels.

1.4. Potential and development trends of e-commerce in Vietnam

1.4.1. Potential for e-commerce development in Vietnam:

The potential for e-commerce development in Vietnam is high for the following reasons:

 Vietnam is a country that exports many goods, e-commerce helps businesses find customers around the world.

 Vietnam can "export" services, information products, and knowledge products by selling them over the Internet.

 Vietnam tourism needs to take advantage of e-commerce to promote, allow online service booking, online payment, support tourists online...

 The State advocates promoting the development of e-commerce.

 IT and Internet in Vietnam have been, are and will continue to develop rapidly.

 The capabilities and benefits that e-commerce brings to businesses, investors... are the major motivations for businesses to participate in e-commerce.

 Vietnamese human resources quickly absorb new technology, especially IT.

1.4.2. E-commerce development trends in Vietnam:

Currently, e-commerce in Vietnam is mainly used to serve marketing and sales for businesses. In addition, some B2B trading floor websites, B2C electronic supermarkets, C2C websites such as classifieds, auctions..., information websites (mainly news)... have been built and put into operation. Domestic and international online payments are still very limited and inconvenient. Sales from the B2B model are still almost non-existent, while B2B sales account for approximately 80 - 90% of the total value of e-commerce transactions globally. In the period of 2006 - 2010, the development trend of e-commerce in Vietnam will follow 3 groups:

 Businesses take advantage of e-commerce to serve marketing, sales, customer support, market expansion, export...

 Businesses operating in the field of e-commerce with e-commerce websites and online business.

 Businesses begin to take advantage of e-commerce in B2B to purchase raw materials for production and business automatically or semi-automatically.

II. Solutions for sustainable development of e-commerce in Vietnam

“Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”

(definition of WCEO - World Organization for Development and Environment). Sustainable development includes: sustainable environment, sustainable society and sustainable economy. In which, developing and applying e-commerce in all economic sectors, economic areas, and types of organizations is one of the meaningful measures to promote economic development.

In general, the development of e-commerce in Vietnam is still spontaneous and has not been oriented by the government and state specialized agencies. Therefore, investment in e-commerce in each enterprise depends on the vision,

The views of business leaders. There are also many individuals and businesses that have established e-commerce websites (trading floors, websites serving the provision of information, classifieds websites, electronic supermarkets...) to gain a pioneering position, however, the general situation is that these websites have not really been well marketed and well developed to bring significant economic benefits.

According to experts, the most important factor in developing e-commerce in Vietnam today comes from businesses. This is the core force in applying and developing e-commerce.

To capture the vast and borderless market via the Internet, businesses must have more reasonable investment strategies.

Training human resources to meet the requirements of e-commerce must be carried out quickly, investment in information technology must also be allocated a large budget and have a more reasonable investment rate...

For e-commerce to develop, many factors are needed to promote and create a foundation such as: technology infrastructure, number of people accessing the Internet, Internet access costs, specialized human resources, e-commerce knowledge in terms of business, strategy, investor awareness, community awareness and especially the management and orientation role of the state...

2.1. Solutions for the state

In developed countries such as the US and Western Europe, the State plays a role in creating a legal corridor such as: building e-commerce laws, participating in bilateral and multilateral agreements to create openness. As for developing countries, the State focuses on building the foundations for e-commerce development. Currently, e-commerce in Vietnam is still developing superficially, not really being widely applied because the first problem is that the legal corridor is not complete so that businesses can confidently participate. For e-commerce to develop as an official sales channel in commercial activities, the State needs to focus on the following tasks:

a. Building and perfecting the legal system for e-commerce

Including main tasks:

 By the end of 2006, fully promulgate sub-law documents to implement the Law on Electronic Transactions, the Commercial Law and the Civil Code, creating a legal basis for data messages. By the end of 2007, fully promulgate legal documents regulating aspects related to e-commerce regarding dispute resolution, consumer protection, intellectual property rights protection, crime prevention, domestic tax and customs issues.

 Review, supplement and amend relevant legal documents to ensure that the entire legal system is generally oriented towards supporting and facilitating the development of e-commerce.

 Unifying with international conventions creates openness for e-commerce on a global scale. The above work is not only the responsibility of the National Assembly and the Ministry of Justice but also of many related ministries and agencies, especially the Ministry of Commerce.

In addition, tax policy in e-commerce transactions is also an issue for management agencies. Although currently almost all e-commerce transactions in the world

Not to mention the tax issue, but gradually when e-commerce has developed to a certain extent, this issue is also very important because it creates a significant source of revenue for the state budget.

When building a legal corridor, the State needs to comply with international trade institutions so that goods and services can flow smoothly.

b. Providing e-commerce support services and conducting electronic transactions in Government procurement

 By 2010, government agencies must put all public services online, with priority given to the following services: electronic tax, electronic customs, electronic import-export procedures, procedures related to investment and electronic business registration, specialized trade licenses, and dispute resolution procedures.

 Amend the regulations on bidding in Government procurement in the direction that investors must announce bidding invitations on the website of the State management agency on bidding and the websites of other agencies. Central ministries, branches, local government agencies of large cities must gradually proceed to sign Government procurement contracts online.

c. Developing technologies to support e-commerce on the basis of encouraging technology transfer from abroad

 Issue and popularize policies and measures to encourage investment in technology development serving e-commerce activities; common standards used in e-commerce, especially electronic data interchange standards (EDI and ebXML)

 Encourage and support banks and credit institutions to apply new technologies to banking operations and banking services, especially electronic payment services; build electronic business networks for a number of large-scale industries.

d. Organize the implementation of legal regulations related to e-commerce

 Build effective mechanisms and apparatus to enforce the protection of intellectual property rights, consumer protection, privacy and to resolve disputes arising in e-commerce according to current laws.

 Urgently deploy statistical activities on e-commerce.

e. International cooperation on e-commerce

 Prioritize multilateral cooperation with international and regional economic and trade organizations such as WTO, APEC, ASEAN, ASEM and specialized organizations.

United Nations trade agencies such as UNCTAD, UNCITRAL, UNCEFACT.

 Prioritize bilateral cooperation with advanced countries in e-commerce and countries with large trade turnover with Vietnam.

f. Organize government agencies to take charge of overall e-commerce projects

To develop e-commerce in Vietnam, there are many things to do at the same time from both the management agency and the business perspective. Its scope involves many levels of sectors: Ministry of Trade, Ministry of Justice, Ministry of Finance, Ministry of Posts, Telecommunications and Information Technology... The problem is to know what to choose first, what to choose later and to synchronize those processes in the most optimal way throughout the country. Therefore, it is necessary to form an agency to preside over and manage the overall project of e-commerce development in Vietnam.

Mission:

 Build a comprehensive project for the state on e-commerce, which both solves macro issues such as creating a legal corridor, providing solutions and policies to develop infrastructure for e-commerce and encourage businesses to participate in e-commerce.

 Manage and monitor projects related to e-commerce

 Plan for resource development for e-commerce. Support education and training of resources. Publish publications with orientation and guidance for e-commerce development.

 Help ministries and branches build, analyze and evaluate e-commerce development projects within their management scope.

 Assist the government in drafting and signing bilateral and multilateral agreements related to e-commerce development.

g. Quickly implement programs and projects outlined in the master plan for e-commerce development for the 2006-2010 period.

Programs included:

Program for popularization, propaganda and training on e-commerce: 4 projects;