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Vietnam’s Policies to Promote the Development of E-commerce

Huong Dieu Nguyen Vietnam E-commerce and Digital Economy Agency

Ministry of Industry and Trade

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• Part I: Vietnam E-commerce Overview

• Part II: Vietnam’s Policies to Promote E-commerce

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Part I: Vietnam E-commerce Overview

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Vietnam E-Commerce Overview 2016

2014 2015 2016

Internet users shopping online estimation 58% 62% 65%

Online purchase value of an individual in USD 145 160 170

23%

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Obstacles for online shopping

20%

37%

50%

25%

26%

26%

24%

18%

Quality of products or services worsethan advertised

Poor customer service

Unclear price or more expensive thanbuying in store

Slow delivery

Personal disclosure

Unprofessional website/app design

Complicated order procedure

Complicated online payment method

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The reasons for no shopping online

20%

37%

50%

25%

26%

26%

24%

18%

19%

20%

50%

48%

48%

21%

21%

17%

17%

12%

11%

10%

Difficult to examine quality of products

Easy to buy in store

Not having trursty sellers

Fear of personal information disclosure

Never tried online shopping before

Not having credit card or payable card

Not having enough information to decide

No demand

Complicated order procedure

The lack of plentiful products/ services

2016

2015

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Part II: Vietnam’s policies to promote e-commerce

• The third E-Commerce Development Master Plan for the

period of 2016 – 2020 (Decision 1563)

• Vietnam National E-commerce Development Program 2014 - 2020 (Decision 689) Online Friday – The Online Shopping Day

Key Pay – The E-Commerce Payment System

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Shopping online

Online retail sales

Cross-border E-commerce

and B2B sales

Vietnam E-commerce Market Size by 2020

• 30% of populations shopping online;

• 350 USD/shopper/year

• Annual growth of B2C increases 20%/year;

• B2C retail sale reaches 10 billion USD by 2020;

• B2C sales account for 5% total retail sales of the nation

• Promotes to develop Cross-border E-commerce rapidly;

• B2B transactions account for 30% of import-export turnover by 2020

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Core Objectives

E-Commerce Infrastructure

Continuing to complete E-commerce legislations

Developing national e-payment system

Restructuring logistics network to improve Profitability & Service Developing E-commerce

infrastructure of safety and security

Focusing on E-commerce human

resource

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50% of enterprises present on the Internet, regularly updated production information

80% of enterprises place and receive online orders

100% of supermarkets, shopping malls, modern distribution agencies accept card payment

70% electricity, water, telecommunications and media providers accept bill payment used by individuals, households through non-cash payments

50% of enterprises applying specialized software in management and production to develop B2B and B2C e-commerce transactions

E-commerce application in enterprises by 2020

1. Forming large and credible e-commerce enterprises

2. Encouraging enterprises and individuals to startup e-commerce businesses

3. Forming and developing credible cross-border e-marketplace

4. Cooperate with other countries to promote cross-border e-commerce and non-paper trade

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National E-Commerce Development Program - Contents

1 • Build and develop the e-commerce infrastructure

2 • Raise the awareness on e-commerce

3 • Develop the human resource for e-commerce

4

5

6

7

8

• Develop the e-commerce solutions

• Consult on designing the e-commerce appliance plan

• International cooperation on e-commerce

• Enhance the management and organizing e-commerce development activities capacity on e-commerce

• Others

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Case Study - Online Friday

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Case Study - Online Friday

Key features:

Started from 2014

Public – private collaboration activity

2016: 3,000 companies attended; 370,000 promotional products/services

Visits on website: 2,452,812; On App: 710,513

Total revenue of participating companies: 47.57 million USD (x2.24 comparing to normal day)

Number of orders: 631,000 (x2.51 comparing to normal day)

Cash-back for online transactions: 18 banks attended; 9,367 orders

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Case Study – Key Pay

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THANK YOU!