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- Introduction of E
commerce
Tran Thanh Hai
Ecommerce Derpartment
Ministry of Trade, Vietnam
www.mot.gov.vn / www.ecvn.gov.vn 1
- Contents
• What is ecommerce
• Why we are interested in Ecommerce?
• Issues need to solve to apply Ecommerce
• Solutions
www.mot.gov.vn / www.ecvn.gov.vn 2
- 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
• Ecommerce:
... 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 3
- 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 4
- 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 lessdeveloped areas’s commercial acts.
– SMEs’s have more opportunities
– Incentives for eGovernments
www.mot.gov.vn / www.ecvn.gov.vn 5
- 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 6
- 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: etax, ebidding
– G2C: administration procedures, tax, fine...
www.mot.gov.vn / www.ecvn.gov.vn 7
- Infrastructure for E-commerce
ELECTRONIC COMMERCE
Sale Purchase
Emarketplace
Epayments
EContracts
Promotion
Bidding
ICT: Computers, bandwidth, cost...
Society: laws, tax,IPR, ...
Human: perception, culture, habits
www.mot.gov.vn / www.ecvn.gov.vn 8
- A basic model of e-retail
Physical Products
Digital products
Advertising Order Distribution Payments
www.mot.gov.vn / www.ecvn.gov.vn 9
- 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.tienphongvdc.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)
• Emarket 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 Ecommerce 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 emarketplace & almost all products online
• Online services
– Education
– Mobile commerce
– Music, film
• CA/digital signature: VASC, VDC, Nacencom
• Epayment: ACB, VCB, EAB
www.mot.gov.vn / www.ecvn.gov.vn 13
- Current barriers (i)
• Knowledge, perception about ecommerce
• 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 ecommerce
– 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
– Etransaction law
– Ecommerce decree
– Strategy & plan for development of ecommerce
• Cooperation among industries
• Increase the perception of people about ecommerce
• Businesses need to voluntarily participate in ecommerce
• Government’s support
– Ecommerce Portal (www.ecvn.gov.vn)
www.mot.gov.vn / www.ecvn.gov.vn 17
- Conclusions
• For N for Ecommerce
– Nhận thức Perception
– Nhân lực People
– Nối mạng Network
– Nội dung Content
thanhhai@mot.gov.vn
www.thanhhai.com
www.mot.gov.vn / www.ecvn.gov.vn 18
nguon tai.lieu . vn
