Introduction of E-commerce Tran Thanh Hai E-commerce Derpartment Ministry of Trade, Vietnam www.mot.gov.vn / www.ecvn.gov.vn Contents • • • • What is e-commerce Why we are interested in E-commerce? Issues need to solve to apply E-commerce Solutions www.mot.gov.vn / www.ecvn.gov.vn 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 www.mot.gov.vn / www.ecvn.gov.vn 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 www.mot.gov.vn / www.ecvn.gov.vn 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 www.mot.gov.vn / www.ecvn.gov.vn 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 www.mot.gov.vn / www.ecvn.gov.vn 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 www.mot.gov.vn / www.ecvn.gov.vn Infrastructure for E-commerce st ne m ap E y - st c art no C E - not o m r P i o ec a p ekr a m E l t - gn dd B i i es ahcr uP - e a S l ELECTRONIC COMMERCE ICT: Computers, bandwidth, cost Society: laws, tax,IPR, Human: perception, culture, habits www.mot.gov.vn / www.ecvn.gov.vn A basic model of e-retail Physical Products Digital products Advertising Order www.mot.gov.vn / www.ecvn.gov.vn Distribution Payments 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 www.mot.gov.vn / www.ecvn.gov.vn 10 Some examples of E-commerce (VN) (ii) • E-market places (B2B portals) International – www.ec21.co m – www.buyusa.com – www.alibaba.com Vietnam – www.ecvn.gov.vn – www.vnet.com.vn – www.vnemart.com.vn – www.vietoffer.com – www.goodsonlines.com.vn www.mot.gov.vn / www.ecvn.gov.vn 11 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 www.mot.gov.vn / www.ecvn.gov.vn 12 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 www.mot.gov.vn / www.ecvn.gov.vn 13 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 www.mot.gov.vn / www.ecvn.gov.vn 14 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 www.mot.gov.vn / www.ecvn.gov.vn 15 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? www.mot.gov.vn / www.ecvn.gov.vn 16 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) www.mot.gov.vn / www.ecvn.gov.vn 17 Conclusions • For N for E-commerce – Nhận thức – Nhân lực – Nối mạng – Nội dung Perception People Network Content thanhhai@mot.gov.vn www.thanhhai.com www.mot.gov.vn / www.ecvn.gov.vn 18 ... 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. ..Contents • • • • What is e-commerce Why we are interested in E-commerce? Issues need to solve to apply E-commerce Solutions www.mot.gov.vn / www.ecvn.gov.vn What is E-commerce? • Simply, using... Where’s the trust of businee people? www.mot.gov.vn / www.ecvn.gov.vn 16 The next steps to E-commerce (2006) • Completion of legal framework & regulations – E-transaction law – E-commerce decree