introduction of e-commerce

1www.mot.gov.vn / www.ecvn.gov.vn

Introduction of E-commerce

Tran Thanh HaiE-commerce DerpartmentMinistry of Trade, Vietnam


Contents

• What is e-commerce• Why we are interested in E-commerce?• Issues need to solve to apply E-commerce• Solutions


What is E-commerce?

• Simply, using electronic means/methods to implement commercial activities

• ... Behind this there is a great changes in habits, culture and traditional activities in commerce world

• E-commerce: ... new products & services (only a little)... new markets (only new way to approach markets)

• … more important: establish a new methods of transations, increase efficiency, competitive capacity, expansion of markets


Why are we interested in E-commerce

• Expansion of markets– website and internet is bounderless

• Reduction of cost, more convenience transactiosn– Email: speed, more information– Longer distance, less cost & time

• Exploitation of information resources on the internet– 24/7 access, continuously updated– searching, contact and dealing with customers


Why are we interested in E-commerce?

• Cosumers– More choices to meet the demands– Purchase anywhere, any time– Digital products can be delivered immediately

• Society– New business style (online style)– Expansion of new markets through market info.

system– Assistance for less-developed areas’s commercial

acts.– SMEs’s have more opportunities– Incentives for e-Governments


Roles of Internet in E-commerce

• Advantages over the other media– telephone– fax– radio– television– newspaper/magazines

• Internet has all the advantages of the other media


Forms of E-commerce

• Based on means of transactions– People - people: tel, fax, email, chat– People - machines: ATM, Credit card, online

retails– Machines - machines: interbank transactions

• Based on participants of transactions– B2B: whole sales, material procurement, ...– B2C: retails of products & services– G2B: e-tax, e-bidding– G2C: administration procedures, tax, fine...


Infrastructure for E-commerce

Human: perception, culture, habits

Society: laws, tax,IPR, ...

ICT: Computers, bandwidth, cost...

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ELECTRONIC COMMERCE


A basic model of e-retail

Advertising Order Distribution Payments

Digital products

Physical Products


Some examples of E-commerce (VN) (i)

• Online stores– www.golmart.com.vn– www.vinagifts.net– www.chibaoshop.com.vn– www.vdcsieuthi.com.vn

• E- Books shop– www.nhasachvn.com– www.tienphong-vdc.com.vn

• Online services– www.nhacso.net– alofun.vietnamnet.vn


Some examples of E-commerce (VN) (ii)

• E-market places (B2B portals)International– www.ec21.co m– www.buyusa.com– www.alibaba.comVietnam– www.ecvn.gov.vn– www.vnet.com.vn– www.vnemart.com.vn– www.vietoffer.com– www.goodsonlines.com.vn


People’s perception about E-commerce

• Why are people hesitated?– Sellers’ worry about not receiving payments– Buyers’ worry about not receiving the goods or

quanlity of goods is not as expected– Both’s worry about security of transactions

(credit card, transaction info...)

• We need a legal framework for E-commerce to – Protect participants– Deal with frauds, criminal...


E-commerce in Vietnam

• Quite rapid development• 17.500 websites of business (out of 200.000

businesses)• 50 e-marketplace & almost all products online• Online services

– Education– Mobile commerce– Music, film

• CA/digital signature: VASC, VDC, Nacencom• E-payment: ACB, VCB, EAB


Current barriers (i)

• Knowledge, perception about e-commerce• Lack of trust

– Lack of knowledge & understanding lack of trust !

– Possibility of fraud in online environment– Lack of legel framework & legal enforcement

• Business activities– Changes in structure, human, process... Need

times• Changes in culture , purchasing habits

– Changes from viewer to purchaser


Current barriers (ii)

• Security - Privacy– Prevent loss of credit card info– Prevent risks (fraud, fishing....)– Privacy

• Payment (banking)– Not enough ATM, lack of linkage among banks

• Not obvious advantages– ISBN & online sales of books


Results

• Changes of communication and business habits– Speed -> requires fast reaction– Dependence -> on technology– Bounders of commercial activities -> expansion

• Control of Internet: open or close?– Vietnam vs Japan: 18 century

• How to promote e-commerce– A tale of Vietnam’s hero– A three years old becomes a hero fighting foreign

enemies– Where to have the support: horse, helmet, spear– Actually during the fight, the spear broken, he

used bamboo trees– Where’s the trust of businee people?


The next steps to E-commerce (2006)

• Completion of legal framework & regulations– E-transaction law– E-commerce decree– Strategy & plan for development of e-commerce

• Co-operation among industries• Increase the perception of people about e-

commerce• Businesses need to voluntarily participate in e-

commerce• Government’s support

– E-commerce Portal (www.ecvn.gov.vn)


Conclusions

• For N for E-commerce– Nhận thức Perception– Nhân lực People– Nối mạng Network– Nội dung Content

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introduction of e-commerce

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