Opportunities for e-commerce development for ASEAN countries

In 2015, the ASEAN Economic Community (AEC) is expected to be established, which will create favorable conditions for the e-commerce industry of countries in the region to develop. However, in order for the e-commerce industry to penetrate deeply into economic activities between countries, countries need to carry out preparations in many areas.

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Some barriers to e-commerce in ASEAN will be removed

According to Dr. Nguyen Tien Minh (University of Economics, Vietnam National University, Hanoi), when AEC is established, it will create many new opportunities for e-commerce development in ASEAN countries. Specifically, when ASEAN becomes a single market and a unified production base, in which the free flow of goods, services, investment and capital, skilled labor will be a great advantage for e-commerce of member countries. Because barriers in regional trade exchange are removed, the volume and speed of goods and services circulation will be increased. This is an opportunity for the development of e-commerce.

On the other hand, e-commerce transactions will no longer be limited to a single country but can expand throughout the region, even globally. In addition, ASEAN is the first region in the developing world to have a legal policy framework for e-commerce. It is forecasted that in 10 years, this will be the region with the most achievements among developing countries in terms of synchronizing e-commerce laws.

In addition, the goal that AEC is aiming for is to form a dynamic and highly competitive economic region, with even economic development, especially effectively implementing the Initiative for ASEAN Integration (IAI). If these goals become reality, they will contribute significantly to promoting economic growth of member countries. With the information technology and telecommunications platform reaching a certain level, along with cooperation for mutual development, it will help AEC member countries have even development. At that time, ASEAN's e-commerce transactions will have conditions to develop in breadth and depth.

In addition, when ASEAN fully integrates into the global economy, it will open up opportunities for economic cooperation between ASEAN and countries outside the bloc, especially with economic powers such as the US, Japan, EU, etc. From there, it will open up opportunities for free trade with countries and regions around the world. When ASEAN's international trade with the outside world is promoted, e-commerce transactions will certainly have the conditions to expand and develop.

Therefore, in order to develop e-commerce in ASEAN countries before the AEC, member countries need to take drastic measures. In particular, it is necessary to strengthen the role of the Government in creating a supportive environment to help e-commerce expand and develop; activate e-commerce through pilot projects, pilot centers and experiments. The new legal framework needs to be adaptable and flexible enough to adapt to changes in technology in the region and globally.

In addition, it is necessary to strengthen the role of the business sector. Accept, develop and apply e-commerce through the commitment of the business sector and trade associations. At the same time, improve the capacity of the communication network infrastructure to ensure connectivity and interoperability. Because one of the basic requirements of e-commerce is the popularity and accessibility of the communication infrastructure. At the same time, high costs can hinder access to information networks, so the price of telecommunications services, along with the price of hardware and software needed to access the communication network, should be at bearable levels.

For e-commerce to be successful within ASEAN, interoperability needs to be ensured to enable all network users in member countries to connect with each other, regardless of computer type, telecommunications service provider, network type and software type used.

At the same time, AEC member states need to acknowledge the borderless nature of e-commerce, and recognize the need to establish and harmonize rules, standards and systems from a regional perspective to facilitate e-commerce activities. These principles will become the framework for specifying and designing technical cooperation and initiatives, thereby facilitating ASEAN countries to conduct e-commerce with other countries in the world.

In addition, it is necessary to implement intellectual property rights, taking into account the latest developments, established norms and standards stipulated in relevant international agreements and conventions. Intellectual property protection is necessary because digital products and services transmitted over the Internet can be easily copied.

On the other hand, it is necessary to improve the safety of e-commerce transactions and create an environment in ASEAN member countries to ensure security for e-commerce. The private sector needs to take the lead in developing and applying security technology to keep up with the modern level. Encourage the application of authentication and encryption technology for safe electronic transactions.

At the same time, ensure the requirements of security and reliability in e-commerce activities. In particular, it is necessary to use internationally recognized and interoperable technological means to prevent illegal access to data.

In addition, there is a need for standards for trade codes and commercial activities for businesses to compete effectively in the region and other countries in the world. Develop electronic payment systems, actively participate in using and continuously improve electronic payment systems to support domestic, regional and international trade. ASEAN member countries ensure the security and reliability of electronic payment systems to protect consumers or to meet the key objectives of law enforcement.

E-commerce Development in Vietnam

According to statistics from the Vietnam E-commerce Association, with the explosion of internet services, 3G connections and mobile devices as it is today, Vietnam's e-commerce transactions reached a value of 2.2 billion USD in 2013 and could reach 4 billion USD in 2015. However, the greater the potential, the greater the risk because up to now, the legal corridor and infrastructure in e-commerce in Vietnam have not kept up with the growth rate.

Currently, about one-third of Vietnam’s population accesses the internet, so e-commerce has great potential for development. With such an explosion, violations in e-commerce transactions have begun to arise, causing suspicion from consumers. In addition, some online retail e-commerce models have appeared to sell counterfeit goods, fake goods, goods of unknown origin, and even prohibited goods.

Regarding regional integration of the e-commerce industry, since the end of 2004, Vietnam has conducted initial negotiations and completed the roadmap for comprehensive integration of the e-commerce industry in ASEAN. The goals of e-commerce integration in ASEAN include: liberalizing trade in ICT products (information and communications technology), ICT services and investment; developing and strengthening the competitiveness of ICT industries in ASEAN; reducing the digital divide within each ASEAN member country and between ASEAN member countries; promoting cooperation between the State and private sectors towards realizing the goal of ASEAN e-commerce.

In the coming time, to develop e-commerce in Vietnam, according to Dr. Nguyen Tien Minh, infrastructure factors need to be built synchronously from legal, telecommunications, internet, payment, human resources. E-commerce is a new field, so the role of state management agencies in the early stages of development is very important. State management agencies need to build policies and development strategies suitable to the current situation and application capacity of the subjects. In particular, it is necessary to build programs to support businesses to raise awareness and apply e-commerce.

E-commerce activities in Vietnam are currently quite diverse in form, complex in nature and have a wide social impact. Meanwhile, the capacity of management and law enforcement agencies has not kept up with the needs of practical development. To improve the effectiveness of State management in this field, it is necessary to have a system of legal documents with strong enough effect and wide coverage, laying the foundation for building mechanisms and organizing the implementation of law enforcement activities and supporting businesses to develop e-commerce in the coming time./.

According to the Communist Party of Vietnam