Introduction of E-commerce Tran Thanh Hai E-commerce Derpartment Ministry 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 ELECTRONIC COMMERCE Sale - Purchase Bidding E-marketplace Promotion E-Contracts E-payments ICT: Computers, bandwidth, cost... Society: laws, tax,IPR, ... Human: perception, culture, habits
A basic model of e-retail Physical Products Digital products Advertising Order 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
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
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 firstname.lastname@example.org www.thanhhai.com