Why does e-commerce expose many weaknesses?

DNUM_AIZADZCABH 15:41

The incomplete legal environment, weak and lacking policies and conditions to support the development of electronic payment services, the habit of paying in cash... are the shortcomings that make e-commerce in Vietnam develop incommensurate with its potential.

Mua sắm online là xu hướng của thế giới và đang tăng trưởng mạnh mẽ
Online shopping is a world trend and is growing strongly.

According to Dr. Nguyen Thi Nhieu - Institute of Trade Research (Ministry of Industry and Trade), e-commerce in Vietnam has developed quite strongly recently, but due to many objective and subjective reasons, the development of e-commerce is not commensurate with its potential and advantages, affecting the development of e-commerce in particular and socio-economic development in general. Currently, domestic cash management costs are still a burden on the economy.

E-commerce in Vietnam is forecasted to have great potential and will develop very quickly in the near future because Vietnam has a high proportion of young population, the rate of mobile phone usage and internet access is increasing rapidly along with a good and constantly improving technology infrastructure.

According to the Vietnam E-commerce Report 2015 of the Department of E-commerce and Information Technology, the scale of B2C e-commerce in Vietnam reached about 4.07 billion USD in sales, an increase of 37% compared to 2014, accounting for about 2.8% of the total retail sales of goods and consumer service revenue nationwide. The purchase value of an online shopper in the year is estimated at 160 USD.

TTĐT ở Việt Nam được dự báo là có tiềm năng rất lớn và sẽ phát triển rất nhanh thời gian tới vì Việt Nam có tỉ lệ dân số trẻ cao, tỉ lệ sử dụng điện thoại di động và truy cập internet tăng nhanh
E-commerce in Vietnam is forecasted to have great potential and will develop very quickly in the near future because Vietnam has a high proportion of young population, and the rate of mobile phone usage and internet access is increasing rapidly.

The majority of online shoppers still choose cash payment with 91%, followed by 48% using bank transfer, 20% of e-commerce participants using payment cards.

Regarding the development of e-commerce services, despite the rapid growth in recent times, e-commerce in Vietnam is still in its potential form, far behind many countries in the region and in the world. According to Visanet - e-commerce network - Vietnam's e-commerce index in 2015 was 37%, this index is equivalent to Thailand's, lower than many countries in the region such as Indonesia (45%) or Malaysia (47%) and much lower than countries with high e-commerce index in Asia such as Singapore (55%), China (60%) or Korea (70%)...

According to Dr. Nguyen Thi Nhieu, the development of e-commerce services in Vietnam is also facing many challenges and major barriers, the legal environment is not yet complete, adequate and synchronous, policies and conditions to support the development of e-commerce services are still weak and lacking, the level of economic and social development is still low, the level of technology is still limited, the habit of paying in cash and the lack of trust of society in e-commerce...

From the research experience of three selected countries: China, Korea, Thailand and based on the current development practice of e-commerce and e-information in Vietnam, Dr. Nhieu recommends that it is necessary to clearly recognize the important and decisive role of the government in the development of e-information services of a country.

Second, Vietnam needs to continue to supplement and complete the legal framework and policy mechanisms for the development of e-commerce. In particular, a clear and transparent legal framework and reasonable supervision by the State Bank of Vietnam over the e-commerce system will be an important factor in enhancing the trust of users and businesses in the e-commerce system.

Third, it is necessary to strengthen coordination and cooperation in policies for developing e-commerce services domestically and internationally, inter-nationally and inter-sectoral. This stems from the fact that e-commerce is a payment method for all goods and services bought and sold over the internet, involving a global customer network.

Fourth, the Government needs to invest directly and have policies to continue to encourage and attract social and private investment to develop technical infrastructure for e-commerce.

Fifth, the Government has policies to encourage the development of potential markets for applying e-commerce such as the transportation market: highway systems, subways, elevated trains, public transportation systems, etc.

Sixth, strengthen network security, confidentiality and information safety of electronic information.

Finally, but indispensable, it is necessary to promote communication and education activities, increase promotion, propaganda, and disseminate instructions throughout society so that e-payment becomes a familiar means of payment for people and train and develop human resources to meet the requirements of e-payment service development.

According to Labor

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Why does e-commerce expose many weaknesses?
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