Vietnam E-commerce report 2013 VECITA - Báo cáo Thương mại điện tử 2013 (Tiếng Anh)
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Vietnam E-commerce report 2013 VECITA - Báo cáo Thương mại điện tử 2013 (Tiếng Anh)

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Vietnam e commerce report 2013 VECITA - Báo cáo Thương mại điện tử 2013 (Tiếng Anh)

Vietnam e commerce report 2013 VECITA - Báo cáo Thương mại điện tử 2013 (Tiếng Anh)

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Vietnam E-commerce report 2013 VECITA - Báo cáo Thương mại điện tử 2013 (Tiếng Anh) Vietnam E-commerce report 2013 VECITA - Báo cáo Thương mại điện tử 2013 (Tiếng Anh) Document Transcript

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  • 2 MỤC LỤC CHAPTER I: LEGAL FRAMEWORK ON E-COMMERCE I. THE CORE LEGAL FRAMEWORK FOR E-COMMERCE IN VIETNAM II. INTRODUCTION TO THE LEGAL DOCUMENTS RELATED TO E-COMMERCE 1. Decree No. 52/2013/ND-CP on E-commerce 2. Introduction to Circular No. 12/2013/TT-BCT stipulating the procedures of notification, registration and promulgation of information related to e-commerce websites 3. Introduction to the legal documents related to e-commerce activities III. LEGAL TEXTS ON SANCTIONING ADMINISTRATIVE VIOLATIONS IN E-COMMERCE 1. Legal texts on sanctioning administrative violations in e-commerce 2. Criminal sanctions in e-commerce CHAPTER II: E-COMMERCE APPLICATION IN COMMUNITY I. VIETNAM'S B2C MARKET SIZE IN COMPARISON WITH THE WORLD 1. United States 2. Japan 3. China 4. India 5. Indonesia 6. Australia 7. Vietnam II. E-COMMERCE APPLICATION IN COMMUNITY 1. The usage of Internet 2. Participation in e-commerce activities in community 3. Effectiveness of applying e-commerce in community CHAPTER III: THE OPERATION STATUS OF E-COMMERCE WEBSITES I. ADMINISTRATION OF E-COMMERCE WEBSITES 1. E-commerce administration portal 2. The models of e-commerce service websites on registration 3. List of e-commerce websites in recommending consumer’s caution and violation of law 4 5 10 10 14 16 17 17 18 20 21 21 22 23 24 24 25 26 28 28 29 31 34 35 35 36 36
  • 3 II. THE STATUS OF E-COMMERCE WEBSITES 1. General overview 2. Information Technology Infrastructure 3. Payment infrastructure 4. Human resources 5. The operating costs of e-commerce service websites 6. The operational status of e-commerce service websites in different types CHAPTER IV: E-COMMERCE APPLICATION IN ENTERPRISES II. THE READINESS OF E-COMMERCE APPLICATIONS IN ENTERPRISE 1. The usage of computer in enterprises 2. The usage of Internet 3. The usage of email 4. Information security and data privacy 5. Staffing for e-commerce III. E-COMMERCE APPLICATION STATUS IN ENTERPRISES 1. E-commerce software application 2. Establishment and utilization of websites 3. Enterprises participating in e-marketplaces 4. Receiving and placing orders via electronic means in 2013 IV. ENTERPRISES’ EVALUATION OF E-COMMERCE APPLICATION EFFICIENCY 1. Investment in IT and E-commerce enterprises 2. E-commerce application efficiency 3. Obstacles CHAPTER V: ELECTRONIC BUSINESS INDEX – EBI I. INTRODUCTION II. HUMAN RESOURCES AND INFORMATION TECHNOLOGY INFRASTRUCTURE INDEX III. B2C INDEX IV. B2B INDEX V. G2B INDEX VI. LOCAL E-BUSINESS INDEX 38 38 42 44 45 46 47 50 53 53 54 55 56 58 60 60 61 64 66 68 68 69 70 72 73 74 76 78 80 83
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  • 5 I. THE CORE LEGAL FRAMEWORK FOR E-COMMERCE IN VIETNAM E-commerce activities means conducting a part or the whole process of a commercial activity via electronic means connected to the Internet, mobile telecommunications network or other open networks1 . E-commerce means a method to conduct business and commercial activities, the subjects in e-commerce have to comply with the legal provisions on business, trade, competition, protection consumers’ rights and other relevant provisions. Updating the core legal framework for e-commerce in Vietnam 2013 Law 21/12/1999 Penal Code 14/6/2005 Civil Code 14/6/2005 Commercial Law 29/11/2005 Law on Electronic Transactions 29/06/2006 Law on Information Technology 23/11/2009 Law on Telecommunication 19/6/2009 Law on amending and supplementing several articles of the Penal Code, No. 37/2009/QH12 21/6/2012 Law on Advertising Decree to provide guidance on law Overidding text 15/02/2007 Decree No. 26/2007/ND-CP guiding the implementation of the E-transaction Law on digital signature and C/A services E-transaction Law 23/02/2007 Decree No.27/2007/ND-CP on electronic transactions in financial activities E-transaction Law 08/03/2007 Decree No.35/2007/ND-CP on electronic transactions in banking activities E-transaction Law 13/08/2008 Decree No.90/2008/ND-CP on anti-spam E-transaction Law and IT Law 06/04/2011 Decree No. 25/2011/ND-CP detailing and guiding the implementation of some articles of the Law on Telecommunication Law on Telecommunicati on 1 Clause 1, Article 3, Decree No. 52/2013/ND-CP of the Prime Minister was promulgated on May 16, 2013 on E- commerce
  • 6 13/06/2011 Decree No. 43/2011/ND-CP detailing regulations on the provision of online information and services on websites or e-portals of State agencies Law on IT 23/11/2011 Decree No. 106/2011/ND-CP amending and supplementing Decree No. 26/2007/ND-CP on Degial Signature and Certification Authority services E-transaction Law 5/10/2012 Decree No. 77/2012/ND-CP amending and supplementing Decree No. 90/2008/ND-CP on Anti-spam E-transaction Law 22/11/2012 Decree No 101/2012/ND-CP on non-cash payment (supersedes Decree No.64/2001/ND-CP on payment operations via the payment service providers) Law on IT 16/5/2013 Decree No. 52/2013/ND-CP on E-commerce E-transaction Law 15/7/2013 Decree No. 72/2013/ND-CP on management, provision and use of Internet services and online information Law on IT 14/11/13 Decree No. 181/2013/ND-CP detailing some articles of Law on Advertising Decree on handle violations Overidding text 10/04/2007 Decree No. 63/2007/ND-CP on sanctioning administrative violations in information technology Law on IT 20/09/2011 Decree No. 83/2011/ND-CP on sanctioning administrative violations in the sector of telecommunication Law on Telecommunicati on 12/11/2013 Decree No. 158/2013/ND-CP on sanctioning administrative violations in culture, sport, tourism and advertising. 13/11/2013 Decree No. 174/2013/ND-CP on sanctioning administrative violations in the fields of posts, telecommunications, information technology and radio frequency. 15/11/2013 Decree No. 185/2013/ND-CP on sanctioning administrative violations in commercial activities, production, trading counterfeit or
  • 7 prohibited goods and protection of the consumers’ rights Circular guiding the implementation of some provisions in the decrees Overidding text 15/09/2008 Circular No.78/2008/TT-BTC guiding the implementation of several provisions of Decree No.27/2007/ND-CP of 23 February 2007 on e- transactions in the financial activities Decree No. 27/2007/ND-CP 30/12/2008 Circular No. 12/2008/TT-BTTTT guiding the implementation of several provisions of Decree No. 90/2008/ND-CP on Anti-spam Decree No. 90/2008/ND-CP 2/3/2009 Circular No. 03/2009/TT-BTTTT stipulating the codes of managemenet and the certification templates of these code for e-mail, messages and Internet messages advertisement service providers. Decree No. 90/2008/ND-CP 16/3/2009 Circular No. 50/2009/TT-BCT guiding on electronic transactions on the stock market. Decree No. 27/2007/ND-CP 31/7/2009 Circular No. 26/2009/TT-BTTTT stipulating the provision of information on and assurance of access to government agencies’ websites Decree No. 64/2007/ND-CP 14/12/2009 Circular No. 37/2009/TT-BTTTT stipulating procedures and required documents for the registration, licensing, and recognition of digital signature certification authorities Decree on digital signature and CA service 22/07/2010 Circular No. 17/2010/TT-BKH detailing pilot online bidding Decree No. 26/2007/ND-CP 9/11/2010 Circular No. 23/2010/TT-NHNN stipulating the managements, operations and use of inter-bank electronic payment system Decree No. 35/2007/ND-CP 10/11/2010 Circular No. 180/2010/TT-BTC guilding instructions on electronic transactions in the sector of taxation Decree No. 27/2007/ND-CP 15/11/2010 Circular No. 25/2010/TT-BTTTT stipulating the collection, use, share, safety assurance and protection of personal information on websites or e-portals of State agencies Decree No. 64/2007/ND-CP 20/12/2010 Circular No. 209/2010/TT-BTC stipulating electronic transactions in the professional operations of the State Bank. Decree No. 27/2007/ND-CP
  • 8 14/3/2011 Circular No. 32/2011/TT-BTC guiding the creation, issuance and use of electronic invoices for goods sales and service provision Decree No. 27/2007/NĐ-CP 10/9/2012 Joint Circular No.10/2012/TTLT-BCA-BQP- BTP-BTTTT-VKSNDTC-TANDTC guilding the provisions of Penal Code on some violations in the fields of information technology and communication. Penal Code 20/6/2013 Circular No. 12/2013/TT-BCT stipulating the procedures of notification, registration and publicizing information related to e-commerce websites. Decree No. 52/2013/ND-CP The Law on Electronic Transaction 2005 and the Law on Information Technology 2006 are two key legal texts of e-commerce in Vietnam. The Law on Electronic Transaction adjusts the electronic transaction activities of the state agencies and the fields of civilian, business and trade. Meanwhile, the Law on Information Technology stipulates the IT application and development in general as well as the other measures to ensure the technology infrastructure for these activities. Two core texts of e-commerce legal system at the moment are Decree No. 52/2013/ND-CP on E-commerce and Decree No. 72/2013/ND-CP on management, provision and use of Internet services and online information. Legal framework on e-commerce
  • 9 Impact of legal documents recently promugalted or modified on aspects of e-commerce activities E-commerce activities – Governed subjects of legal documents Civil relationship (civil responsibilities and civil contracts) Civil Code Mechanism of civil dispute settlement Business activities Law on Enterprises Commercial Law E-commerce transactions Legal system on Information techology Legal system on E-commerce Nature of transaction Responsibilities and obligations of parties in business activities Mode of transaction
  • 10 II. INTRODUCTION TO THE LEGAL DOCUMENTS RELATED TO E-COMMERCE 1. Decree No. 52/2013/ND-CP on E-commerce Decree No. 52/2013/ND-CP of the Prime Minister was promulgated on May 16, 2013 to adjust specific issues arising in the electronic environment, not to repeat the general regulations of business and trade which the subjects of e-commerce have their obligations to comply. Approach in formulating the Decree Subjects of e-commerce activites
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  • 12 Structure of Decree on E-commerce •Scope of application, subjects of application, interpretation of terms •Prohibited acts in e-commerce activities •Contents of the state management over e-commerce •National Program for e-commerce development, e-commerce statistics Chapter 1: General provisions •Electronic communications in trade transactions •Contracting by use of online order function on e-commerce websites Chapter 2: Contracting in e-commerce •Operation of sale e-commerce websites •Operation of e-marketplaces •Operation of online sale promotion websites •Operation of online auction websites Chapter 3: E-commerce activities •Management of sale e-commerce websites •Management of e-commerce service websites •Third-party monitoring, evaluation and authentication services (website trustmark, privacy trustmark, e-document authentication organizations, etc) •E-commerce Regulatory Portal Chapter 4: Management of e-commerce activities •Personal information protection in e-commerce •Payment safety in e-commerce transactions Chapter 5: Safety and security in e-commerce transactions Chapater 6: Settlement of disputes, inspection, examination and handling of violations Chapter 7: Implementation provisions
  • 13 Subjects of application in Decree on E-commerce National e-commerce development program - Parties agree to choose the Decree to apply participate in e- commerce activities - Be present in Vietnam (branch, representative office, website having ".vn" domain name) Vietnamese traders, organizations, individuals E-commerce operate inside the territory of Vietnam E-commerce operations outsite the territory of Vietnam
  • 14 Contracting process on e-commerce websites with online ordering functions Management of e-commerce operation E-commerce Websites E-commerce service websites E-marketplaces Online sale promotion websites Online auction websites E-commerce sale websites Registration Notification E-COMMERCE OPERATION MANAGEMENT PORTAL
  • 15 Provisions of personal information protection in the Decree on E-commerce 2. Introduction to Circular No. 12/2013/TT-BCT stipulating the procedures of notification, registration and promulgation of information related to e-commerce websites On June 20, 2013, the Ministry of Industry and Trade promulgated Circular No.12/2013/TT-BCT guilding some provisions to manage e-commerce websites in Decree No.52/2013/ND-CP of the Prime Minister on E-commerce. The Circular comes into effect from July 01, 2013, at the same time with Decree No.52/2013/ND-CP on E- commerce. Scope and subject of application in Circular No.12/2013/TT-BCT Obligations for preserving personal data in E-commerce Responsibilities for protection of consumers’ personal information Policies on protection of consumers’ personal information Asking consumers’ permission for collection of information Use of personal information Safety and security of personal information Check, update and correction of personal information Evaluation and certification of policies on personal information protection Traders, organizations are certificated to perform Must have operation project, criteria and process to evaluate the compliance with MOIT’s regulations (approved when being licensed)
  • 16 Notification and registeration procedures of e-commerce websites Publicizing information on e-commerce administration portal Publicizing the list of e-commerce websites have notified or registered Publicizing the list of e-commerce websites granted trustmark by the traders or organizations Publicizing the list of e-commerce websites in violations of law Receiving complaints and publicizing the list of e-commerce websites with signs of violations
  • 17 3. Introduction to the legal documents related to e-commerce activities Classification of websites stipulated in Decree No. 72/2013/ND-CP on management, provision and use of Internet services and online information Besides on the management of provision and use of Internet services and online information, the Prime Minister promulgated Decree No. 70/2012/ND-CP on October 05, 2012 to amend and supplement Decree No.90/2008/ND-CP on Anti-spam, this has much changes in the direction of management as well as other specific provisions to the involved parties when sending e-mails. This Decree comes into effect from January 01, 2013 with new amendment regulations such as: - Tighttened provisions for the dissemination of commercial e-mail and advertisement message, - Tightened provisions for the obligation of dissemination, transparency of the content service providers and telecommunication enterprises: Disseminating information about content services that providers provide (terms of use, service fee…) on the website; Prohitbit deduction from the users’ mobile phone account without prior notice. - Sumplementing liability of telecommunication companies in preventing spams - Sumplementing regulations in order to raise the competitiveness of the mobile content service market. - Sumplementing regulations for use of name when sending advertisement messages. - Increasing sanction levels for administrative violations - Other amended and supplemented provisions E-newspaper under the form of a website Established and operated in accordance with the Law on Press General website Provide information on the basis of quoting accurately from official information resources Internal website Provide information about the function, tasks, operation sectors and other necessary information serving the operation of the agencies, organizations, enterprises Personal website (blog) Established by an individual Established through a social service network Website for specialized application Commerce, Finance, Banking Culture, Health, Education Other sectors Licensing Licensing Social network: Lilcensing specialized managment
  • 18 III. LEGAL TEXTS ON SANCTIONING ADMINISTRATIVE VIOLATIONS IN E-COMMERCE 1. Legal texts on sanctioning administrative violations in e-commerce The Prime Minister promulgated Decree No. 185/2013/ND-CP, dated November 15, 2013, on sanctioning of administrative violations in commercial activities, production and trade of counterfeit or prohibited goods, and protection of the consumers’ rights. The sanction of fine to be imposed in this Decree is the core punishment and the levels of fines are applicable for the administrative violations of individuals. In case, the administrative violations are implemented by organizations, their levels of sanctions are equal to two times of individuals’ fines. Article 81: Administrative violations on setting up e-commerce websites A fine of between VND 5.000.000 to 30.000.000 shall be imposed for one of the following acts: Not following the regulations on forms or rules of disclosed information on e-commerce service websites; Setting up the e- commerce sale websites without notification to the state management agencies as prescribed by law; Setting up the e-commerce service websites without registration in accordance with law; Cheating or falsifying on registration information of the e-commerce service websites; and the other administrative violations. Article 82: Administrative violations on information and transactions on e-commece websites A fine between VND 5.000.000 to 50.000.000 shall be imposed for one of the following acts: Setting up the e- commerce service websites or other online service websites without disclosing information transparence and completing the procedures or contracting process in accordance with law; Cheating customers on e-commerce websites; Taking advantages of e-commerce to do business of counterfeit, goods, or services violating intellectual property rights, goods or services in the list of prohibited ones; and other administrative violations. Article 83: Administrative violations on provision of e-commerce services A fine between VND 10.000.000 to 50.000.000 shall be imposed for one of the following acts: Organizing marketing and promotion network for e-commerce services in which each participant shall have to pay an initial amount of money to buy services and receive commission, bonus or other economic profits from mobilizing others to join the network; Not providing information and supporting the state management agencies in investigating violation acts on the e-commerce service websites; and other administrative violations. In addition to the above provisions, this Decree also has regulations on administrative violations in the data privacy on e-commerce activities (Article 84) and the conduct of evaluation, monitoring and certification in e- commerce (Article 85). Besides the fine of money, there are additional regulations in this Decree to the recidivism violations or violations commit serious impact to the social interests, such as: Confiscation of material evidences and means of administrative violations; Suspension of e-commerce operation; Deprivation of the right to use licenses; and the other remedial measures such as: Forcible recall of “.vn” domain name; Forcible refund of illicit profit earned through the commission of administrative violations; Forcible correction of untruthful or misleading information of administrative violations. The Decree comes into effect on January 01, 2014.
  • 19 Besides the promulgation of Decree No. 185/2013/ND-CP, the Prime Minister also promulgated Decree No. 174/2013/ND-CP, dated November 13, 2013, on sanctioning administrative violations in the fields of posts, telecommunications, information technology and radio frequencies, of which Article 74 stipulating a fine between VND 100,000,000 to 140,000,000 shall be imposed for the acts of cheating on e-commerce, or currency trading, credit mobilization, trading and paying shares via Internet in order to appropriate illegally the properties of organizations and individuals. Goes along with the fines, the subjects of administrative violations may be imposed additional sanctions such as confiscation material evidences, means of administrative violations and other remedial measures such as forcible refund illicit profit earned through the commission of administrative violations. 2. Criminal sanctions in e-commerce Some provisions of the Joint Circular No. 10/2012/TTLT-BCA-BQP- BTP-BTT&TT-VKSNDTC-TANDTC • The determination of consequences of criminal acts including physical and non-physical consequences (causing property damages beside the illegal apropriated properties) • Property damages caused by crimes, including direct and indirect Factors to determine and frame the punishment • In case the victim can not be identified due to objective reasons • But basing on collected materials and evidences, defining that the arrestee committed an offense • -> ..., investigation, prosecution and trial would be proceeded. Identification of victim • Stipulating that "Electronic data can be used as an evidence" • Stipulating sequences to collect and keep the electronic means which contain electronic data • Stipulating the copy of electronic data and the transformation of data into evidence Sequences, procedures of collecting evidence (electronic data)
  • 20 Detailing contents of Article 226b - Penal Code The crime of using computer networks, telecommunications networks, Internet or digital devices to appropriate property - Making counterfeit bank cards - Illegally access to accounts Cheating in e-commerce means using deceitful rackets, giving false information about a product, a matter, a field in e-commerce ... in order to create confidence for the property owner or property manager to make them believe that the information is true and buy, sell or invest in these fields. Other acts situplated at Point đ Clause 1 Artilce 226b includes: - Sending a fraud message for a prize to appropriate fees for message servicesbut there is no prize in reality ; - Avertising to sell goods on the Internet, telecommunication networks without delivering or delivering a wrong quantity or kind of goods, or delivering goods with lower quality than advertised - Similar acts Sentenced to between 3 &7 years imprisonment • To appropriate a property valued at between VND 50,000,000 to 200,000,000, or • Causing physical damage worth between VND 50,000,000 to 500,000,000 Sentenced to between 7 &15 years imprisonment • To appropriate a property valued at between VND 200,000,000 to 500,000,000, or • Causing physical damage worth between VND 500,000,000 to 1,500,000,000 Sentenced to between 12 & 20 years imprisonment • To appropriate a property valued at VND 500,000,000 and above • Causing physical damage worth VND 1,500,000,000 and above
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  • 22 I. VIETNAM'S B2C MARKET SIZE IN COMPARISON WITH THE WORLD 1. United States In 2013, the US Ministry of Commerce announced online retail sales reached $264 million, raised 17% from $222.5 million in 2012. This is similar to the figure issued by eMarketer (a company of market research in the US) in September 2013 which totaled $262.3 million, up 16.3% over 2012. Therefore, US has continued to lead the world in e- commerce retail market with 156.1 million online shoppers2 and average online purchase per shopper was $2,466 in 2013. US B2C e-commerce sales 2013 3 Source: www.eMarketer.com US B2C e-commerce sales forecasts over 2014 - 2017 Year 2014 2015 2016 2017 Growth rate forecast (over previous years) 14.6% 14.2% 13.6% 12.8% B2C e-commerce sales forecast ($billion) 300.5 344.4 391.2 441.3 Source: www.eMarketer.com 2 Internet users age 14 and more; have made at least one online purchase 3 Including products or services ordered using the Internet, regardless of the method of payment or fulfillment; excluding travel and event tickets.
  • 23 2. Japan According to the statistics provided by Commerce Policy and Information Department, Japan Ministry of Economy, Trade and Industry (METI) in 2013, e-commerce sales grew evenly 17% over the period of 2005 - 2012 and was expected to increase by 10% in the next 5 years. In 2012, total B2C e-commerce sales reached 9.5 thousand billion Yen (or $ 92.3 billion4 , increased 12.5% from 2011). Based on METI’s estimated growth rate of 10% from 2012, B2C e-commerce sales could reach $101.5 million in 2013. In 2013, eMarketer also estimated that Japan's B2C e-commerce sales accounted for $118.59 billion. Regarding the findings about the market share of e-commerce, all business sectors increased, the retail sector topped at 53% and the information and communication sector ranked second at 24% therein. Japan’s E-commerce sales share by business line Source: Survey of Commerce Policy and Information Department, METI 4 Converted at the exchange rate of $1 = JPY 104.71
  • 24 3. China Periodic report on economic situation issued by China Ministry of Commerce in Quarter 3, 2013 stated online retail sales grew by 34.7% in the first 9 months in comparision with the previous year, approximately RMB 1.3 thousand billion (equal to $214.2 billion5 ) If the online retail market continued to increase 35% in Quarter 4, 2013, China e- commerce sales would reach $282 billion in 2013 and surpass the US to become the world’s largest online retail market. Meanwhile Global E-commerce Report by eMarketer revealed China’s B2C e-commerce sales accounted for $ 181.62 billion, ranking the second of the world after the US. China had now 270.9 million online buyers who had made at least one purchase in 2013. China’s B2C e-commerce sales over 2011 - 2016 6 Source: www. eMarketer.com 5 Converted at the exchange rate of $1 = RMB 6.07 6 Figures include travel, digital downloads, event tickets, sales from e-commerce businesses that occur over B2C platforms; excludes gambling; excludes Hongkong.
  • 25 4. India According to eMarketer, in 2013, the world’s 2nd largest population country was increasing in the B2C e-commerce transaction with a growth rate of 34.6%, the retail sales7 reached $16.32 billion in 2013. eMarketer indicated every Indian digital buyer spent averagely $665 online while 23,5% of India’s population using Internet. Online shopping in India in the period of 2012-2016 2012 2013 2014 2015 2016 Estimation of Online buyer (million people) 19.2 24.6 30.0 36.2 41.8 Estimation of Online purchase per online user (USD) 632 665 691 708 724 Source: www. eMarketer.com 5. Indonesia According to eMarketer’s Global E-commerce Report released in July 2013, Indonesia’s B2C e-commerce sales rose the fastest in Asia Pacific at 71.3 %. Indonesian’s average e-commerce sales per online buyer are 391 USD, increased 54 USD in comparision with 2012. Market forecast for 2015, each online buyer will spend approximately 480 USD for online shopping. B2C e-commerce sales over 2012 - 2016 (Unit: $ billions) Source: www. eMarketer.com 7 Digital travel sales represent roughly 80% of B2C e-commerce sales 1.04 1.79 2.60 3.56 4.49 2012 2013 2014 2015 2016
  • 26 6. Australia Australia’s B2C e-commerce market is growing robustly. The estimation of eMarketer shows that, e-commerce retail sales will catch $ 31.24 billion by 2016. In 2013, B2C e- commerce sales accounted for $ 26.77 billion, increased $1.51 billion compared with 2012. The growth rate was approximate 6%. Australia’s B2C e-commerce sales over period 2013 - 20168 Source: www.eMarketer.com Also indicated by eMarketer, the goods and services such as tourism, entertainment, fashion and apparels were mostly purchased by online shoppers, made up ¼ of the e- commerce retail sales. Best Online Purchases in Australia in 2013 (Unit: AUD bil.) Source: www.eMarketer.com 8 This figure includes travel, digital downloads and tickets and excludes gambling, converted at the exchange rate of US $1 = AUD 0.97
  • 27 7. Vietnam 7.1. Estimation of Vietnam’s B2C e-commerce sales in 2013 In 2013, VECITA, the Ministry of Industry and Trade collected data from the outstanding e-commerce firms. The survey’s result revealed that the estimation of e-commerce sales per online buyer accounted for approximately US $120 in 2013. Purchasing items were fashion, cosmetics products (62%), technology and electronic products (35%), household products (32%), air tickets (25%) and others. In Vietnam, most of online shoppers paid in cash (74%), while payments via bank accounts and via intermediate payments in e- commerce websites were 41% and 8% respectively. Besides, in 2013, VECITA conducted the survey to 781 Internet individual users about their online shopping status in 2 big cities (Hanoi and Ho Chi Minh city). 57% of Internet users purchased items online and the B2C e-commerce sales were estimated $ 2.2 billion. Vietnam B2C e-commerce sales estimates 2013 Vietnam population 2013 Internet users penetration (% population) E-commerce sales per online buyer 2013 Online buyer penetration (% Internet users) B2C e-commerce sales 90 mil.people 36% $ 120 USD 57% $ 2.2 billion Source: Survey of E-commerce and Information Technology Agency 7.2. Estimation of Vietnam B2C e-commerce sales 2015 Forecasting by 2015, Vietnam will have 40 - 45% of Internet users. Goes along with the increase of Internet user in 2015 as well as the economical growth rate, the e-commerce legal framework will be completed, the development trend of logistic infrastructure and payments will increasingly be concerned. According to the findings, the rate of Internet users purchasing items online is predicted to increase by 2015.
  • 28 Based on the above-mentioned figures and an estimated increase of $ 30 in each online consumer’s spending in 2015 in comparision with 2013, Vietnam B2C e-commerce sales will reach around $ 4 billion. B2C E-commerce sales forecasts 2015 Vietnam Population 2015 Internet user penetration (% population) 2015 E-commerce sales per online buyer 2015 Online buyer penetration (% Internet user) B2C e-commerce sales 2015 Growth level Rate 93 million people 45% 150 USD High 70% $US 4.3 billion Moderate 65% $US 4.08 billion Low 60% $US3.7 billion Source: Forecasts by E-commerce and Information Technology Agency
  • 29 II. E-COMMERCE APPLICATION IN COMMUNITY 1. The usage of Internet According to VECITA survey, 702 out of 781 Internet users (92%) go online daily. Frequency of Internet using in Vietnam Source: Survey of E-commerce and Information Technology Agency 2013 Laptop and mobile phone continued to be the most popular devices to access Internet in big cities (60% and 50% respectively). Devices to access Internet Source: Survey of E-commerce and Information Technology Agency 2013 46% 60% 50% 12% Desktop Laptop Mobile phone Other devices
  • 30 According to the survey, 87% go online to update information, 73% use social network or forum, 71% access e-mail, 20% shop online. Purposes of accessing Internet Source: Survey of E-commerce and Information Technology Agency 2013 2. Participation in e-commerce activities in community Surveys of E-commerce and Information Technology Agency in 2013 about online shoppers indicated that 61% of them purchased items online via sales e-commerce websites, 51% bought via group-buying websites, 45% via social forums, 19% via e- marketplace websites and 6% via applications on mobile. Online purchase methods Source: Survey of E-commerce and Information Technology Agency 2013 87% 58% 66% 37% 71% 73% 20% 70% 60% Update information Research & study Watch movies, photos, listen to music Play Games Access email Participate in forums or social… Buy & sell online For work purpose Others
  • 31 Online purchase by genders Source: Survey of E-commerce and Information Technology Agency 2013 The managers and office staffs were frequent online purchasers (41%). This results from the fact that they do not have much time for traditional shops due to the official working time, however, they do have time to access Internet, followed by students (37%). Online purchase by occupations Source: Survey of E-commerce and Information Technology Agency 2013 The popular online products are clothes, shoes and cosmetics accounted for 62%. The second most popular categories were technology products (35%), followed by household products (32%) and air tickets (25%) and etc. Male 41% Female 59% 41% 7% 37% 15% Manager/Office staffs Sales/Production staffs Students Others
  • 32 Popular online products on e-commerce websites Source: Survey of E-commerce and Information Technology Agency 2013 Cash was a major payment method in online transaction (74% of respondents); 41% of answerers transferred via bank, 11% used bank accounts, 9% used mobile/game cards and only 8% use electronic wallet. Payment methods in online shopping Source: Survey of E-commerce and Information Technology Agency 2013 3. Effectiveness of applying e-commerce in community The survey’s results showed that 5% of online purchasers were very satisfied, 29% were satisfied, 62 % felt neutral and 4% were dissatisfied. 74% 8% 41% 9% 11% Cash on deliveryElectronic wallet Bank transfer Mobile/Games cards Payable cards
  • 33 Satisfaction of online purchasers Source: Survey of E-commerce and Information Technology Agency 2013 The obstacles of online shopping to respondents were the quality of products or services worse than advertised (77%), price not lower than buying from traditional shops (40%), unprofessional logistic services (38%), afraid of personal privacy disclosure (31%), complicated online order procedures (29%). Obstacles of online shopping Source: Survey of E-commerce and Information Technology Agency 2013 2% 20% 29% 31% 38% 40% 77% Others Unprofessional website design Complicated online order procedures Concerns over personal privacy disclosure Unprofessional shipping & delivery service Price (not lower than traditional shopping/not clear stated) Product quality worse than advertised
  • 34 Reasons for people not shopping online Source: Survey of E-commerce and Information Technology Agency 2013 Along with the obstacles of online purchase, results of the survey indicated the reasons why people did not purchase online including: the difficulties in examining quality of products, the features of products not as advertised (59%); buying in stores easier and faster (45%); not having trust insellers (41%); not having enough information to make purchase decisions (38%); not having credit cards or other payable cards (37%). However, among 781 respondents, 88% will continue to purchase items online in the future. 12% remaining will go back to conventional shopping. Continue to purchase items online or not Source: Survey of E-commerce and Information Technology Agency 2013 6% 6% 20% 22% 26% 37% 38% 41% 45% 59% Unable to use online shopping functions Low internet connection Complicated online oder procedures Never try No online selling/buying Not having credit cards or payable cards Not having enough information to… Not having trust in sellers Easy and fast to buy in stores Difficult to examine quality of products 88% 12% Yes No
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  • 36 I. ADMINISTRATION OF E-COMMERCE WEBSITES 1. E-commerce administration portal The website address www.online.gov.vn is the E-commerce Administration Portal. Its main function is to provide online public services for the traders, organizations, individuals who own e-commerce websites to implement the administrative formalities of the Ministry of Industry and Trade according to the provisions of laws. In addition, it also provides information about the e-commerce for the viewers. All the information provided including: the list of e-commerce websites have been notified or registered; the list of the traders and organizations who have already registered and provided trust evaluation services for the e-commerce websites; the list of e-commerce websites which were complained for the violations of laws; the list of e-commerce websites violated the laws. E-commerce Administration Portal was officially put into operation from July 1st , 2013 according to the Decree No.52/2013/ND-CP on E-commerce. The status of notification and registration profiles on E-commerce Administration Portal Status Number of records in 2013 Notification Registration Suspending 275 24 Additional requirement 279 100 Cancellation notification/registration 102 118 Approved 202 116 Total 858 358 Approval profiles rate9 (%) 24% 32% Source: www.online.gov.vn According to the statistics of E-commerce Administration Portal, by the end of 2013, there were 202 e-commerce sale websites which had been approved of notification, accounting for 24% of total records; and 116 e-commerce service websites which had been approved of registration, accounting for 32%. 9 Total approved profiles are calculated based on total notification and registration profiles to Ministry of Industry and Trade.
  • 37 2. The models of e-commerce service websites on registration Also according to the findings, by the end of 2013, in total of 116 confirmed registration e-commerce websites, there were 90 websites offered e-commerce service10 according to the model of e-marketplaces, 13 of online sale promotion websites and 13 of combined model (including from 2 to 3 models: e-marketplaces, online sale promotion websites, and online auction websites). The number of websites offering e-commerce services in different models Source: www.online.gov.vn 3. List of e-commerce websites in recommending consumer’s caution and violation of law The list of e-commerce websites recommending consumer’s caution and violation of law had been informed on E-commerce Administration Portal. Until the end of 2013, there were 2 e-commerce websites on the black list because of not having notification and registration procedures to the Ministry of Industry and Trade. In addition, the violation behavior warning of some e-commerce websites based on consumers’ feedbacks had been provided on E-commerce Administration Portal as well. 10 Website offering e-commerce services combined of three kinds as follow: e-marketplace, online auction website, online sale promotion website. 13 13 90 Combined website Online sale promotion website E-marketplace
  • 38 Some popular violations according to consumer’s feedback on E-commerce Administration Portal No. Violations Percentage rate (%) 1 Conducting e-commerce website without notification or registration 62,3% 2 Organizing marketing and promotion network for e-commerce services in which each participants shall have to pay an initial amount of money to buy services and receive commission, bonus and other economic benefits from mobilizing others join the network 20,3% 3 Violation of information on e-commerce websites 7,2% 4 Using link website to provide conflicting or incorrect information compared with published information in website areas to which are linked this link 4,3% 5 Trading in counterfeit prohibited goods 2,9% 6 Violation of transactions on e-commerce websites (eg: payment fraud) 1,6% 7 Making corrupt use of e-commerce websites’ operating to raise capital illegally from other traders, organizations and individuals 1,4% Source: www.online.gov.vn An example warning posted on the E-commerce Administration Portal Source: www.online.gov.vn
  • 39 II. THE STATUS OF E-COMMERCE WEBSITES In 2013, VECITA made a survey of traders and organizations owing e-commerce service websites all over the country and collected a total of 164 questionnaires. 1. General overview In 164 e-commerce service websites participating in the survey, the main model was primarily online store (60%). The followings were classified advertisement (45%), buying in group (19%) and forum (18%). E-commerce service websites in operation models Source: Survey of E-commerce and Information Technology Agency 2013 1.1. Investment capital 78% of e-commerce service websites were established by their own budget, 14% by the state budget and 8% of them was received from the foreign investment capital. Investment capital for e-commerce websites Source: Survey of E-commerce and Information Technology Agency 2013 1.2. Products, services introducing on the websites 60% 45% 19% 18% 18% 0% 20% 40% 60% 80% Online stores Classified advertisement Buying-in-group Forum Others Enterprises Foreign investment Others78% 14% 8%
  • 40 Clothing, footwear, cosmetics were the most commonly sold products on the e-commerce websites, accounted for 79% of surveyed sites. This proportion represented a correspondence between the supply and demand, of which 62% of people chose to purchase this kind of product online. The types of products or services introducing on e-commerce websites Source: Data gathered by E-commerce and Information Technology Agency 2013 1.3. The tools and supporting utilities on e-commerce websites Source: Survey of E-commerce and Information Technology Agency 2013 24% 24% 52% 52% 55% 63% 64% 67% 70% 70% 73% 79% Miscellaneous products Miscellaneous services Entertainment Lumber and other construction material Machinery, auto and motor vehicles Flowers, gifts Foods, milk Books, stationery Travel tourism Home appliances Computer, mobile and electrical equipment Clothing, shoes and comestic 8.9% 10.1% 8.7% 9.4% 6.5% 7.5% 1.0% 2.8%2.8% 0.4% 0% 1.9% 3.5% 0% 0.1% 11.6% 9.7%9.5% 0.1% 5.9% Payment Shipment Warranty Deliveringgoods Cancellinggoods Confirmingorderviaemail ConfirmingorderviaSMS Storemanagement Ordermanagement Deliverycontrolling Billofladingcontrolling Trustevaluation Productevaluation Digitalsignature Supportingtransactionof… Online… Advertisement Socialnetworkintegration Storetemplates Shoppingcart
  • 41 1.4. The types of Advertisement The most popular type of advertisement which were chosen by enterprises including the social networks (87%), followed by search engines (84%). Especially, the number of enterprises advertising on television was only 13% due to its expensive. The types of advertisement on e-commerce websites Source: Data gathered by E-commerce and Information Technology Agency 2013 eMarketer was estimated that 1.61 billion people would log on social networks at least once per month, from a variety of different electronic media in 2013, up 14.2% compared to 2012 and it was expected to increase continuously in the coming years. By 2017, 2.33 billion people are predicted to use social networks by eMarketer. The number of social networking users in the world (Units: billion people) Source: www.eMarketer.com, November 2013 0% 20% 40% 60% 80% 100% Others Television Newspaper Online news Connection to other sites Search engines Social networks 13% 13% 25% 58% 61% 84% 87% 2012 2013 2014 2015 2016 2017 1.41 1.61 1.82 1.99 2.16 2.33
  • 42 According to ComScore, an organization specializes in measuring and evaluating the effectiveness of online marketing, Facebook was a social network having the biggest number of unique visitors in Vietnam (11.8 million) in April 2013, followed by Zing Me (attracting 5.3 million unique visitors). In Vietnam, the social network is growing and spreading rapidly. Enterprises use social networking sites such as Facebook, Linkedin, ZingMe...to promote their own websites by establishing Banner Ads or Fan Page, etc. ... Top ten social networking sites of visitors in Vietnam No Social Network Total unique visitors (Millions) Total visits (Millions) 1 Facebook 11,8 345,3 2 Zing Me 5,3 50,7 3 Blogger 5,3 15,5 4 Wordpress.com 2,8 8,1 5 Diendanbaclieu.net 2,0 3,0 6 Kenhsinhvien.net 1,5 2,3 7 LinkedIn 1,1 3,1 8 Tamtay.vn 0.7 1,6 9 Ketnoi.com 0,7 0,9 10 Blogtruyen.com 0,6 3,7 Source: www.comscore.com, April 2013 Facebook Banner Ads Source: Information gathered by E-commerce and Information Technology Agency 2013
  • 43 According to ComScore, in April 2013, in the ranking of the websites that have the largest number of visitors in Vietnam, Google and Yahoo stayed in the first and second with 15.5 and 13.1 million unique visitors respectively. Advertising via search engines such as Google, Yahoo are also popularly chosen by e-commerce enterprises. They can use the search engines to advertise through the user’s searching keywords. Two main forms of advertising via search engines are SEO - Search Engine Optimization11 ) and PPP - Pay Per Click12 ). The advertising via search engines can be done at the cost of flexibility, depending on the budget and as the number of searches in the areas that businesses care about. A type of advertisement via Google search engine Source: Information gathered by E-commerce and Information Technology Agency 2013 2. Information Technology Infrastructure The software such as accounting, finance and firewall and anti-virus were tools commonly used in most of the business survey with the proportion of 90% and 87%. 11 SEO (Search Engine Optimization): is the process used to increase the amount of visitors to a website by obtaining a high- ranking placement in the search results page of a search engine 12 PPC (Pay Per Click): a form of online advertising where the advertiser only pays if someone clicks on their ads.
  • 44 The rate of software used in business administration Source: Survey of E-commerce and Information Technology Agency 2013 Information security measures Source: Survey of E-commerce and Information Technology Agency 2013 0% 20% 40% 60% 80% 100% Others ERP SCM HRM CRM Accounting 21% 18% 21% 45% 45% 90% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Others Digital signature, digital certificate Hardware Anti-virus Firewall 9% 36% 45% 84% 87%
  • 45 3. Payment infrastructure The development of payment systems has greatly contributed to make online shopping more conveniently and easily. In terms of 164 surveyed e-commerce enterprises, 48% of e-commerce websites had integrated online payment function. Regarding the remaining websites which had not been integrated online payment functions, over half of them reveal that they are going to integrate this function in the future. It can be said that this rate will tend to increase rapidly in the near future. The percentage of e-commerce service websites having online payment function Source: Survey of E-commerce and Information Technology Agency 2013 Online payment methods are chosen to use in business Source: Survey of E-commerce and Information Technology Agency 2013 48% 22% 30% Integration None Going to have Ngan luong 27% Bao Kim 24% Onepay 9% Smartlink 9% Others 31%
  • 46 4. Human resource s According to the survey results of 164 e-commerce websites, there were an average of 38 employees in one enterprise, of which the number of technical staffs accounted for 24%, and the number of customer relations employees accounted for 34%. The above results indicate that the e-commerce business model does not require businesses to have great personnel resources to set up its business. The rate of staffs in e-commerce enterprises Source: Data gathered by E-commerce and Information Technology Agency 2013 The majority of surveyed enterprises have difficulty in recruiting staffs specializing in IT and e-commerce. Form of staff training is still on-site training depending on the job demand. Enterprises having difficulties in recruiting Source: Data gathered by E-commerce and Information Technology Agency 2013 Technical staffs Customer relations employees Others 24% 34% 42% 59% 49% 0% 20% 40% 60% 80% Yes No
  • 47 Forms of Training IT and E-commerce Source: Survey of E-commerce and Information Technology Agency 2013 5. The operating costs of e-commerce service websites The survey results showed that the most operating cost of e-commerce service website was for human resource, accounting for an average of about 50% of the total cost of operating websites per year. The percentage of operating cost in e-commerce websites Source: Survey of E-commerce and Information Technology Agency 2013 4.55% 15.15% 33.33% 90.91% No training Open class Send employee out for training On-site training to meet requirements Infrastructure Human resources Advertisement Others 1/8/2012 25% 47% 22% 6% 1-8/2013 15% 54% 17% 14% 0% 10% 20% 30% 40% 50% 60%
  • 48 6. The operational status of e-commerce service websites in different types 6.1. Online promotion website According to the data were provided by enterprises, the total revenue of 38 online promotion websites in 2013 were about 774 billion VND. Of which, hotdeal.vn was a leader in the market, making up 54% in the total revenue. Muachung.vn and nhommua.vn accounted for 26% and 3% respectively. Market share of online promotion website in terms of revenue Source: Data provided by enterprises in 2013 Hotdeal.vn led in the surveyed website list with the savings amount of 52% of the market savings, followed by muachung.vn (37%), sieumua.com (6%), dealvip.vn (2%) and cungmua.com (1%). Market share of online promotion website surveyed In terms of amount of savings Source: Data provided by enterprises in 2013 hotdeal.vn 54% muachung.vn 26% nhommua.vn 3% others 17% hotdeal.vn 52%muachung .vn 37% others 11%
  • 49 The number of coupons (voucher) which had been sold by the online promotion website in 2013 was 6.378 million vouchers, decreasing more than 50% compared to 2012. Hotdeal.vn, muachung.vn and nhommua.com accounted for 46%, 24% and 14% respectively. Market share of online promotion website surveyed by the number of coupons Source: Data provided by enterprises in 2013 6.2. E-marketplaces The total revenue in 2013 of 116 e-marketplaces gained approximately 323 billion VND. Of which, the main source of revenue was charged per order (22%), Ads charge (20%), membership fee (18%), etc... The top revenue of surveyed websites was chodientu.vn (29%), followed by lazada.vn (22%), vatgia.com (15%), ivivu.com (14%) and enbac.com (3%). The structure of revenue components of E-marketplace Source: Data provided by enterprises in 2013 46% 24% 14% 16% hotdeal.vn muachung.vn nhommua.com others
  • 50 Top 5 surveyed e-marketplaces in terms of revenue Source: Data provided by enterprises in 2013 6.3. Online auction website The total transaction value of 10 online auction websites surveyed in 2013 was about 5.38 billion VND. Of which, ebay.vn placed the lead with 46% of total successful transactions value, followed by 5giay.vn, accounted for 41%. Market share of online auction websites surveyed in terms of successful transactions value Source: Data provided by enterprises in 2013
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  • 52 I. GENERAL INFORMATION In 2013, Vietnam E-commerce and Information Technology Agency (VECITA) - the Ministry of Trade and Industry sent out the survey questionnaires about the status of e- commerce application to more than 3270 enterprises nationwide. The respondents in the survey varied according to the different business sectors, scales and industries. The survey found that roughly most of the respondents were 72% of employees, followed by 6% of managers, directors accounted for 22%. Survey answerers Source: Survey of Vecita in 2013 The scale of enterprise participating in the survey classified into 3 categories: large enterprises (300 or more employees), small and medium enterprises - SMEs (with less than 300 employees). In 2013, 90% of large enterprises and 10% of SMEs surveyed. The scale of enterprises over years Source: Survey of Vecita in 2013 85% 94% 94% 89% 90% 15% 6% 6% 11% 10% 75% 80% 85% 90% 95% 100% 105% 2009 2010 2011 2012 2013 SME Large Enterprises
  • 53 Regarding the type of survey respondents, 49% of them were the limited liability companies, the joint stock companies accounted for 31%, while the rest of respondents such as the private enterprises, the general partnerships and the other types of enterprises accounted for 14%, 1% and 6% respectively. Types of enterprises surveyed in 2013 Source: Survey of Vecita in 2013 The three sectors having more enterprises participating in the survey were industry (23%), wholesale and retail (21%), and construction (17%). In 2012, the industrial sectors accounted for only 16%, wholesale and retail were 17% and construction was 14%. Business sectors of the enterprises surveyed in 2013 Source: Survey of Vecita in 2013
  • 54 II. THE READINESS OF E-COMMERCE APPLICATIONS IN ENTERPRISE 1. The usage of computer in enterprises According to the survey result in 2013, 100% of surveyed enterprises equipped with computers at work. The survey findings revealed that 10%, 16% and 19% of enterprises got the number of more than 50, 21-50 and 11-20 computers respectively. The number of computers in enterprises over the years Source: Survey of Vecita in 2013 The number of computers in enterprises by regions Source: Survey of Vecita in 2013 50% 23% 21% 6% 72% 16% 9% 3% 52% 21% 16% 11% 55% 19% 16% 10% 1-10 11-20 21-50 Trên 50 2010 2011 2012 2013
  • 55 2. The usage of Internet In conformity with the findings, 100% of the respondents used Internet, the most popular method of Internet connection was ADSL (78%), followed by leased line 22%. In general, there are no significant differences in the Internet usage compared to the previous year. Internet connection methods in enterprises 2013 Source: Survey of Vecita in 2013 Internet connection methods by regions Source: Survey of Vecita in 2013 The most popular internet connection method was ADSL, Can Tho City had the highest rate of ADSL connections in the country with 98%, followed by Hanoi (85%), Da Nang (84%), Ho Chi Minh City (82%) and Hai Phong (67%). 78% 22% ADSL Leased line 85% 15% 82% 18% 67% 33% 84% 16% 98% 2% 0% 20% 40% 60% 80% 100% 120% ADSL Leaseline Ha Noi Ho Chi Minh Hai Phong Da Nang Can Tho
  • 56 3. The usage of email Email is one of the most common utilities on the Internet. According to the survey results in 2013, 100% of enterprises used email for their business purposes, 3% higher than in 2012 (97%). Email usage for business purpose of enterprises Source: Survey of Vecita in 2013 Email usage for business purpose of enterprises in different sizes 2013 Source: Survey of Vecita in 2013 29% of SMEs answered their email usage levels of 11% - 20% to support for their business purposes, 23% of respondents used email to support more than 50% of these purposes. In the large enterprises, 26% and 17% of them used email for their business purposes of 21%-50% and more than 50% respectively.
  • 57 4. Information security and data privacy 4.1. Information security 86% of enterprises used antivirus software, 53% of them used firewalls, followed by 26% using hardware measures to ensure the information security. The percentage of enterprises using digital signature applications increased by 8% in 2013 compared with 2012 (31% in 2013 compared with 23% in 2012). Methods of information security Source: Survey of Vecita in 2013 Methods of information security by business size Source: Survey of Vecita in 2013
  • 58 4.2. Data privacy According to the survey in 2013, the results showed that 73% of surveyed enterprises having methods to protect the privacy information varied according to different tools such as firewalls, software, hardware and digital signature. Privacy policy Source: Survey of Vecita in 2013 There is a gap between the large enterprises and SMEs in the implementation of methods to protect privacy information. 80% of large enterprises adopted methods to protect privacy information, while this percentage of SME enterprises accounted for 70%. Data privacy policies by business size in 2013 Source: Survey of Vecita in 2013 63% 27% 53% 47% 77% 23% 73% 27% Yes No 2010 2011 2012 2013
  • 59 5. Staffing for e-commerce In 2013, the proportion of enterprises having e-commerce specialized staffs was 65%, increased by 14% compared with 2012. Percentage of e-commerce specialized staffs in enterprises over years Source: Survey of Vecita in 2013 Regarding the findings, two business sectors had the highest rate of e-commerce specialized staffs (accounted for 80%) including finance, real estate and entertainment. The lowest field was wholesale and retail with 58%. Rates of staffs responsible for IT Source: Survey of Vecita in 2013 33% 20% 23% 51% 65% 2009 2010 2011 2012 2013
  • 60 Enterprises owing websites by business sectors in 2013 Source: Survey of Vecita in 2013 Regarding IT and e-commerce training for employees, the most common training method in 2013 was the on-site training with the highest rate of 53%. 26% of enterprises chose to send employees out for training, 14% of enterprises opened classes for staff. Enterprises’ IT and E-commerce training methods for employees in recent years Source: Survey of Vecita in 2013 In 2013, the proportion of enterprises had no application of e-commerce or IT training for staff decreased to 27% compared with the previous year (2012 and 2011 were 31% and 49% respectively). In contrast, the proportion of enterprises that sent employees out for training or opened class increased comparing to the previous year, respectively 26% and 14%. The method on-site training was more popular for enterprises in the last 2 years, (53% in 2012 and 54% in 2013).
  • 61 IT and e-commerce training methods in recent years Source: Survey of Vecita in 2013 III. E-COMMERCE APPLICATION STATUS IN ENTERPRISES 1. E-commerce software application According to survey results in 2013, two groups of software were most commonly used in business included accounting, financial software accounted for 87% and human resource management (57%).Rate of enterprises applying software in 2013 Source: Survey of Vecita in 2013
  • 62 In term of business sizes, the usage of software between large enterprises and SMEs were 58% and 76% respectively. Meanwhile, the application of financial accounting software companies were approximately 88% and 90%. Software usage of enterprises in diffirent business sizes in 2013 Source: Survey of Vecita in 2013 2. Establishment and utilization of websites In 2013, the proportion of enterprises owning websites accounted for 45%, the proportion of enterprises expected to build their websites accounted for 9%. Rate of enterprises owning websites in recent years Source: Survey of Vecita in 2013 In 2013, most websites were owned by enterprises operating in the financial and real estate sectors accounted for 70%, followed by entertainment sectors with 68%, education and training sectors with 59%.
  • 63 Enterprises owing websites by business sectors Source: Survey of Vecita in 2013 Frequency of websites update in enterprises over the years Source: Survey of Vecita in 2013 Frequency of information updates of enterprises’ websites Daily Weekly Monthly No update Business sizes SME 58% 21% 14% 7% Large enterprises 45% 26% 24% 4% Regions Hanoi 68% 13% 12% 7% Ho Chi Minh city 48% 22% 24% 6% Other region 52% 23% 18% 7% Source: Survey of Vecita in 2013
  • 64 In 2013, there were major changes in information updates of enterprises’ websites by regions, Hanoi got the most frequent daily update rate with 68%, 20% higher than in 2012. Meanwhile, Ho Chi Minh City retained the frequency of website updates almost unchanged compared with the previous year. In other regions, the proportion was slightly increased by 2% compared to 2012 (2012 was 50%). Rate of enterprises’ website functions in 2013 Source: Survey of Vecita in 2013 Rate of enterprises’ websites functions between 2012 and 2013 Source: Survey of Vecita in 2013 Compared with 2012, the rate of enterprises had their websites to introduce their business and products in 2013 increased, 96% and 92% respectively (in 2012 this rate was 95% and 89%). In 2013, surveyed enterprises could estimate their websites, regarding to four options to choose. The ranking of each option increases according to the e-commerce functions in the websites. According to the survey results, the number of enterprises with professional website in level 2 reached the highest rate of 41%. The number of websites at level 3 96% 41% 56% 56% 92% 18% Enterprises Introduction Product introduction Customer services Recruiment Product introduction Online payment 95 89 38 17 96 92 41 18 0 20 40 60 80 100 120 Enterprises introduction Product introduction Online orders Online payments 2012 2013
  • 65 accounted for 26% and level 1 was 26% in 2013, the rate of websites stayed in level 4 being only 7%. Enterprises’ self-evaluation about their websites Source: Survey of Vecita in 2013 3. Enterprises participating in e-marketplaces The proportion of enterprises participating in e-marketplaces accounted about 12% in 2012. Rate of enterprises participating in e-marketplaces over the years Source: Survey of Vecita in 2013 In term of the business sectors, the rate of enterprises in finance, estate and industry sectors joining e-marketplaces stayed in the highest rate of 28% and 20% respectively. The transportation sector was in the lowest rate to participate in e-marketplace with only 10%. 26% 41% 26% 7% 0% 10% 20% 30% 40% 50% 1 2 3 4 12% 14% 9% 12% 12% 0% 5% 10% 15% 2009 2010 2011 2012 2013
  • 66 Rate of enterprises participating in e-marketplaces by business sectors in 2013 Source: Survey of Vecita in 2013 85% of enterprises answered the efficiencies of participating e-marketplaces were moderate or good levels, 15% respondents evaluated these efficiencies in low levels. Effectiveness of participating in e-marketplaces Source: Survey of Vecita in 2013 According to survey results, the most of 10 well-known e-marketplaces could be listed as vatgia (22%), Alibaba (14%), ecna (5%), 5giay (5%), 123mua (4 %), enbac (3%), ChoDienTu (3%), muaban (3%), rongbay (2%) and ebay (2%).
  • 67 The 10 popular e-marketplaces well-known by enterprises Source: Survey of Vecita in 2013 4. Receiving and placing orders via electronic means in 2013 The number of placing orders and receiving orders through the website of enterprises increased in 2013 compared with previous years, this rate were 50% and 35% respectively, meanwhile in 2012 were 29% and 33%. Rate of enterprises receiving and placing orders via electronic means Enterprises use electronic means Telephone Fax Email Website Receiving orders 94% 70% 83% 35% Placing orders 95% 67% 83% 50% Source: Survey of Vecita in 2013 Receiving orders via electronic means in enterprises Source: Survey of Vecita in 2013 In 2013, the rate of enterprises had phone usage to receive, store and process information at the same time of orders accounted for 94%, followed by 83% using email, fax and website 35% to 70% respectively. 22% 14% 5% 5% 4% 3% 3% 3% 2% 2% 0% 5% 10% 15% 20% 25% 86 71 70 29 94 70 83 35 Telephone Fax Email Webiste 2012 2013
  • 68 The number of enterprises placing order via electronic means are also corresponds to the rate of electronic means used in the order received. Phone usage was accounted for 95%, 83% followed by email, fax and website 67% to 50% respectively. Placing orders via electronic means in enterprises Source: Survey of Vecita in 2013 Based on the result of 3,270 surveyed enterprises, 19% of firms said the rate of their placing order through electronic means reaching over 50% compared to the total revenue within the year. Meanwhile, 24% of companies were saying that the total value of their placing order via electronic means ranged from 21% - 30% of their total revenue in 2013. Value of orders enterprises receiving via electronic means compared to the total revenue Source: Survey of Vecita in 2013 Value of orders enterprises placing via electronic means compared to the total expenses Source: Survey of Vecita in 2013 87% 66% 68% 33% 95% 67% 83% 50% Telephone Fax Email Website 2012 2013
  • 69 IV. ENTERPRISES’ EVALUATION OF E-COMMERCE APPLICATION EFFICIENCY 1. Investment in IT and E-commerce enterprises In 2013, the investment rate of enterprise for IT and e-commerce were 42% for hardware and 24% for software. The expense rate on training and other expense slightly increased by 2% compared to 2012 (17% in 2013). Cost structure for IT and e-commerce in enterprises 2013 Source: Survey of Vecita in 2013 In general, the investment structure for IT and e-commerce do not have much difference compared to the previous year. This is also the general trend of IT applications and e- commerce for years and there is no signs for turning point changes in IT and ecommerce investment. Expenditure structure on IT and E-commerce infrastructure of enterprises over the years Source: Survey of Vecita in 2013 41 26 18 15 42 24 17 17 0 5 10 15 20 25 30 35 40 45 Hardware Software Education Others2012 2013
  • 70 2. E-commerce application efficiency Surveyed enterprises were asked to answer four questions in order to evaluate the efficiencies of e-commerce application: 1) Customer communication; 2) Advertisement for enterprises; 3) reducing business expense; 4) increasing revenue and profits. The point scaling for each criterion is from 0 (not efficient at all) to 4 (very efficient). Efficiency of e-commerce application of enterprises Source: Survey of Vecita in 2013 According to 2013 survey results, 41% of businesses said their revenue increased throughout e-commerce channel, 13% decreased and 46% almost unchanged. Particularly, the effectiveness of e-commerce review is relatively stable in the past few years. Trends of revenue from electronic means Source: Survey of Vecita in 2013 2.3 2.35 2.4 2.45 2.5 2.55 Customer communication Enterprise introduction Lower expense Higher profit
  • 71 Trends of revenue from electronic means by business sizes Source: Survey of Vecita in 2013 3. Obstacles The surveyed enterprises were asked to give scores to the following obstacles: 1) Human resources’ failure to meet the requirements; 2) Incomplete legal environment; 3) Undeveloped electronic payment system; 4) Weak operation of transport and delivery service; 5) No network security; 6) Low social awareness and unfavorable business environment. The point scale for each obstacle is from 0 (Not causes any negative impacts) to 4 (causes the greatest negative impacts on business). Evaluation on obstacles to e-commerce application Source: Survey of Vecita in 2013 In term of survey results, the barriers of e-commerce in Vietnam in the period 2008 - 2013 indicated that the overall environment for the development of e-commerce had been significantly changed. The average point of all obstacles dropped continuously over the years with a GPA of 2:52 in 2008 to 2:15 in 2013. Analysis of the gap between the highest and lowest points throughout period of each year shows that the difference was narrowed down, the greatest obstacles were not much different from other obstacles.
  • 72 Obstacles in e-commerce implementation in the period of 2009-2013 Obstacles 2009 2010 2011 2012 2013 Network security 2.83 2.54 2.38 2.45 2.35 Social awareness and business environment 3.07 2.55 2.36 2.47 2.42 Online payment system 2.76 2.39 2.30 2.29 2.13 Human resources 2.68 2.32 2.26 2.06 1.90 Legal enviroment 2.69 2.29 2.25 2.21 2.05 Delivery services 2.56 2.30 2.11 2.25 2.07 Individual awareness 2.89 2.49 - - - IT and Communication Infrastructure - - - - Average point 2.78 2.41 2.28 2.29 2.15 The gap between the highest and lowest points 0.51 0.26 0.27 0.41 0.52 Source: Survey of Vecita in 2013
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  • 74 I. INTRODUCTION E-commerce has already penetrated all fields of business and has closely connected with the information technology and communications. Evaluating the status of E-commerce has a significant impact on formulating of policies and laws, state management and business activities. According to the Decision No. 1073/QD-TTg dated July 12th 2010 approving the Master Plan on E-commerce Development for the 2011 – 2015 Period, the Prime Minister appointed Vietnam E-commerce Association (VECOM) to formulate E- business Index. E-business Index provides comprehensive, trustworthy and quantitative information to outline the whole picture of e-commerce nationally as well as locally. In 2013, VECOM continued to formulate this index in order to support the state agencies, organizations and enterprises to estimate quickly the status of e-commerce application in the nationwide as well as in the regions. From the approaching of “demand”, E-Business Index (EBI) is the result of the survey of e-commerce application among thousands of enterprises. EBI is formulated based on four criterion groups: human resources and ICT infrastructure, business to customer transactions (B2C), business to business transactions (B2B) and government to business transactions (G2B). Each criterion group is graded by the 100 point scaling with an assigned weight. The total score of the assigned weight of all four groups is basic for evaluation and classification of e-commerce application among localities. Each criterion in each group is also graded by the 100 point scaling with an assigned weight to express the importance of each criterion in an equivalent group. Weights for each group as well as each criterion have remained unchanged in several years to create favorable conditions for comparison.13 13 Detailed information available at htttp://ebi/vecom.vn
  • 75 II. HUMAN RESOURCES AND INFORMATION TECHNOLOGY INFRASTRUCTURE INDEX Human resources and Information Technology Infrastructure Index (NNL & HT) is measured based on several elements such as how the current human resources meet the demand of information technology and e-commerce application among the enterprises, the ability of recruitment of information technology and e-commerce employees, the types of staff training, the proportion of employees in charge of e-commerce and information technology, the propotion of employees using email frequently as well as the other criterion groups on computer infrastructure, Internet access or investment for information technology and e-commerce. The average score of this index in 2013 was 61.5, the highest score was 76.0 and the lowest score was 51.3. This result reflects that the human resources and information technology in Vietnam are ready for e-commerce application. Also, the information technology and communications infrastructure have already basically met the demand of e-commerce implementation in almost localities. The big cities do not only have the highest score of HR & IT index but also have scores increasing faster than scores of the rest of other cities. Similar to 2012, Ha Noi and Ho Chi Minh city were the two leading cities with the scores of 76.0 and 73.9, respectively. In comparison with 2012, the score of Ha Noi had increased by 4.7 and the score of Ho Chi Minh city had increased by 2.9. Followed by 71.8, 71.3 and 70,8 being Thua Thien – Hue, Da Nang and Hai Phong respectively. In 2012, the score of Thai Nguyen was 68.7 and took the fifth place of the ranking. In 2013, the score of this province had increased by 1.7 to reach 70.4, but only stayed in the seventh place of the ranking. The five provinces having the lowest scores of HR & IT index are located in North Mountain, Southwest and Central Highlands. They are namely Dien Bien (52.6), Lang Son (51.9), Cao Bang (51.6), Hau Giang (51.5) and Dak Nong (51.3). However, with the 100 point scaling, the scores of these provinces are more than the average point.
  • 76 Human resources and Information Technology Indexes 51.3 51.5 51.6 51.9 52.6 52.6 52.7 52.9 53.0 53.9 54.0 54.7 55.6 57.3 57.5 57.9 58.0 58.5 59.4 59.8 60.5 62.1 62.7 63.0 63.0 63.4 63.7 63.9 64.1 64.3 64.4 64.7 64.8 64.8 64.9 65.0 65.4 66.6 69.6 69.7 70.4 70.6 70.8 71.3 71.8 73.9 76.0 Dak Nong 47 Hau Giang 46 Cao Bang 45 Lang Son 44 Ca Mau 43 Dien Bien 42 Bac Can 41 Kon Tum 40 Binh Phuoc 39 Bac Lieu 38 Soc Trang 37 Ben Tre 36 Quang Ngai 35 Ninh Thuan 34 Yen Bai 33 Vinh Long 32 Phu Yen 31 Gia Lai 30 Hung Yen 29 Dak Lak 28 Ninh Binh 27 Tra Vinh 26 Kien Giang 25 Phu Tho 24 Binh Thuan 23 Ha Nam 22 Dong Thap 21 Lam Dong 20 Binh Dinh 19 Quang Ninh 18 Hai Duong 17 Tien Giang 16 Thanh Hoa 14 Long An 15 Dong Nai 13 Nghe An 12 BRVT 11 Bac Ninh 10 Can Tho 9 Khanh Hoa 8 Thai Nguyen 7 Binh Duong 6 Hai Phong 5 Da Nang 4 TT.Hue 3 Ho Chi Minh city 2 Ha Noi 1
  • 77 III. B2C INDEX This index is formulated basing on these main following elements: 1) use of email for commercial activities such as contracting, advertisement, introduction of products and enterprises, customer transactions, customer services… 2) set-up and operation of the enterprise’s website…3) participation in e-marketplaces; 4) use of non-cash payment means; 5) protection of individual information. Enterprises having websites are evaluated by many important elements including: the frequency of website updates, the number of related staffs, methods of website advertisement…. Grading websites are also based on the main functions of websites such as introduction of enterprise’s information, goods and services or online ordering functions, online payment function and online customer services function… The average point of B2C index is just 49.1. It is the lowest score in the total of EBI’s four criterion groups, including NNL & HT index, B2C transactions, B2B transactions and G2B transactions. The average point reflects the rate of enterprises not owning websites (57%) higher than the enterprises owning websites (43%). On the other hand, the quality and effectiveness of websites getting back to the owners are not high enough. There is not much supporting for customers in the usage of payment means. The enterprises do not pay their adequate attention to protect the personal information in the online transactions. Ha Noi was the leading city with the score of 61.7, increased 5.5 in comparison with the figure of 2012. Followed by Ho Chi Minh city with 58.9, rose of 5.1; Hai Phong had risen by 4.5 to reach 55.6. There are 64% of localities staying under the average score; the gap between the highest and the lowest score is 15.4. In terms of this transaction, some localities has increased remarkably. For instance, the score of Thanh Hoa had increased from 49.0 in 2012 to 53.4 in 2013; The score of Nghe An had risen from 45.4 to 49.8 and the score of Binh Phuoc had risen from 41.8 to 47.7.
  • 78 B2C Transaction Indexes 40.2 42.6 42.7 43.3 44.0 44.1 44.3 44.6 44.8 45.0 45.1 45.2 45.5 45.6 45.7 45.8 46.0 46.3 47.0 47.2 47.5 47.7 48.1 49.3 49.3 49.4 49.5 49.5 49.6 49.8 50.2 50.4 50.5 51.3 52.7 53.4 53.9 54.1 54.4 54.4 54.7 55.3 55.5 55.6 55.9 58.9 61.7 Tra Vinh 47 Dien Bien 46 Tien Giang 45 Dak Lak 44 Soc Trang 43 Cao Bang 42 Hung Yen 41 Binh Dinh 40 Ca Mau 39 Kien Giang 38 Phu Tho 37 Ninh Binh 36 Ben Tre 35 Lam Dong 34 Long An 33 Phu Yen 32 Thai Nguyen 31 Bac Can 30 Yen Bai 29 Lang Son 28 Dong Thap 27 Binh Phuoc 26 Gia Lai 25 Ha Nam 24 Dak Nong 23 Kon Tum 22 Binh Thuan 21 Hau Giang 20 Bac Lieu 19 Nghe An 18 Quang Ngai 17 Hai Duong 16 Ninh Thuan 15 Dong Nai 14 Binh Duong 13 Thanh Hoa 12 BRVT 11 Vinh Long 10 Da Nang 9 TT.Hue 8 Quang Ninh 7 Khanh Hoa 6 Can Tho 5 Hai Phong 4 Bac Ninh 3 Ho Chi Minh city 2 Ha Noi 1
  • 79 IV. B2B INDEX This index focuses on the internal information technology application of enterprises, especially the implementation of software including Enterprises Resources Planning (ERP), Customer Relationship Management (CRM) and Supply Chain Management (SCM). The implementation of these softwares requires the scientific management and the determination of information technology application at all management levels as well as the sufficient investments in information technology and e-commerce. In term of successful application of these softwares, the enterprises can conduct e-commerce activities at a large scale, safety and effectively. Simultaneously, this index also focuses on the reality of receiving orders and placing orders of enterprises on the Internet and the total value proportion of orders over the total revenue of enterprises. 2013 has seen the two localities ranking the highest scores in the B2B transactions index but they are not the biggest cities. Binh Duong has the score of 73.9 and becomes the pioneer city, of which having the numbers of enterprises implement e-commerce professional quite many. The follow province is Dong Nai with the score of 71.8. The score of Ha Noi is 67.6, raise 1.8 scores compared to 2012; the score of Ho Chi Minh City is 71.7 and increases 3.3 scores compared to the previous year. Some provinces have the rapid increase in the number of enterprises implementing e- commerce. For instance, Thai Nguyen increases 10 scores, from 55.4 in 2012 to 65.1 in 2013. There are 28% of localities staying under the average score. The provinces having the lowest scores are Dak Nong, Dien Bien, Kon Tum and Bac Can.
  • 80 B2B Transaction Indexes 42.4 43.6 45.4 45.5 47.0 47.4 48.0 48.5 49.0 49.0 49.6 49.8 49.8 50.9 51.0 52.2 52.6 53.1 53.3 53.8 54.0 54.3 54.9 55.1 55.3 57.0 57.1 57.7 58.0 58.7 59.1 59.6 59.7 60.5 61.8 62.1 62.7 63.4 63.5 64.5 65.1 67.6 68.0 69.2 71.7 71.8 73.9 Bac Can 47 Kon Tum 46 Dien Bien 45 Dak Nong 44 Bac Lieu 43 Gia Lai 42 Soc Trang 41 Ha Nam 40 Ninh Thuan 39 Hau Giang 38 Ca Mau 37 Yen Bai 36 Binh Phuoc 35 Kien Giang 34 Ben Tre 33 Lang Son 32 Vinh Long 31 Dak Lak 30 Quang Ngai 29 Cao Bang 28 Tra Vinh 27 Binh Thuan 26 TT.Hue 25 Lam Dong 24 Dong Thap 23 Hung Yen 22 Binh Dinh 21 Hai Duong 20 BRVT 19 Quang Ninh 18 Tien Giang 17 Khanh Hoa 16 Thanh Hoa 15 Long An 14 Phu Yen 13 Bac Ninh 12 Can Tho 11 Ninh Binh 10 Phu Tho 9 Nghe An 8 Thai Nguyen 7 Ha Noi 6 Da Nang 5 Hai Phong 4 Ho Chi Minh city 3 Dong Nai 2 Binh Duong 1
  • 81 V. G2B INDEX The information gathering easily from the state agencies’ websites would create a favorable condition for business activities among the enterprises and could be seen as one of the e-commerce elements. Besides, e-commerce in enterprise could not be separated with the provision of online public services such as electronic customs services, electronic certificate of origin or electronic tax declaration. In addition, the scale of Governmental trading has the significant proportion of all commercial activities at every scale in any countries, therefore, the online bidding of public goods and services cannot be separated with online trading. In term of G2B transactions index, the average score was 58.8. Ho Chi Minh City had the highest score of 72.1, up 4.1 compared to the score in 2012. Ho Chi Minh City had overtaken Da Nang to become the city on top of this index. Dong Nai stayed in the second of the index with the score of 70.7, raised 9.0 scores and became one of the provinces having the most significant increase in the ranking. Ha Noi also had a remarkable increase from 65.7 in 2012 to 69.5 in 2013. Most of the leading provinces place above the average score and the enterprises generally expresse for the better evaluations about the quality of public online services. This result is similar to the e-government ranking of United Nations. In 2012, the ranking of Vietnam had risen by 7 level compared to 2010 and placed the 83rd ranking out of 190 countries.
  • 82 G2B Transactions Indexes 48.0 48.1 49.6 50.5 50.7 51.1 51.5 51.7 52.2 53.5 54.8 55.1 55.2 55.3 55.4 55.4 55.7 55.8 56.4 56.9 57.1 57.9 58.1 58.7 59.3 59.5 59.7 60.2 60.6 60.8 61.0 61.1 61.3 61.6 61.8 62.9 63.0 64.1 65.0 65.3 65.6 65.7 65.8 69.5 70.7 70.7 72.1 Binh Thuan 47 Hau Giang 46 Gia Lai 45 Bac Can 44 Kon Tum 43 Dak Nong 42 Bac Lieu 41 Dien Bien 40 Tra Vinh 39 Ninh Binh 38 Lam Dong 37 Phu Tho 36 Binh Phuoc 35 Yen Bai 34 Binh Duong 33 Khanh Hoa 32 Kien Giang 31 Dak Lak 30 Ha Nang 29 Hung Yen 28 Ben Tre 27 Soc Trang 26 Thanh Hoa 25 Phu Yen 24 Lang Son 23 Bac Ninh 22 Vinh Long 21 Cao Bang 20 Nghe An 19 Dong Thap 18 Binh Dinh 17 Thai Nguyen 16 Tien Giang 15 Long An 14 Ca Mau 13 Hai Duong 12 BRVT 11 Hai Phong 10 Quang Ninh 9 Ninh Thuan 8 TT.Hue 7 Can Tho 6 Quang Ngai 5 Ha Noi 4 Da Nang 3 Dong Nai 2 Ho Chi Minh city 1
  • 83 2013 EBI Indexes 47.3 47.3 48.6 48.9 49.5 50.0 50.0 50.3 50.9 51.1 51.2 51.3 51.6 51.7 52.0 52.1 52.4 53.2 53.3 53.7 54.0 54.4 55.3 55.4 55.5 55.5 55.6 55.7 55.7 56.2 57.1 57.9 58.5 59.3 59.4 59.5 59.6 59.9 60.3 60.6 62.5 63.2 64.1 64.4 65.1 67.9 68.4 Dien Bien 47 Bac Can 46 Kon Tum 45 Dak Nong 44 Hau Giang 43 Bac Lieu 42 Soc Trang 41 Gia Lai 40 Binh Phuoc 39 Tra Vinh 38 Ca Mau 37 Ben Tre 36 Yen Bai 35 Cao Bang 34 Lang Son 33 Dak Lak 32 Kien Giang 31 Ha Nam 30 Binh Thuan 29 Hung Yen 28 Lam Dong 27 Ninh Thuan 26 Quang Ngai 25 Ninh Binh 24 Binh Dinh 23 Vinh Long 22 Phu Yen 21 Tien Giang 20 Dong Thap 19 Phu Tho 18 Long An 17 Hai Duong 16 Thanh Hoa 15 BRVT 14 Nghe An 13 Khanh Hoa 12 Thai Nguyen 11 Quang Ninh 10 TT.Hue 9 Bac Ninh 8 Can Tho 7 Binh Duong 6 Dong Nai 5 Hai Phong 4 Da Nang 3 Ha Noi 2 Ho Chi Minh city 1
  • 84 VI. LOCAL E-BUSINESS INDEX In 2013, the average score of E-business Index was 55.7. This index is the aggregation of four criterions, of which the higher weights are assigned for B2C and B2B online transaction index. The five leading localities in index are Ho Chi Minh City, Ha Noi, Da Nang, Hai Phong and Dong Nai, it shows no changes in comparison with 2012. Ho Chi Minh City placed the highest score of 68.4, increaseed 3.9 in comparison with the previous year. Ha Noi took the second place, 0.5 points lower than the leading city. Ho Chi Minh city Index Ha Noi Index Da Nang Index Kon Tum Index 73.900 58.900 71.700 72.100 61.500 49.100 56.300 58.800 .00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 HT&NNL B2C B2B G2B Tp. HCM Điểm Trung bình HCM city Average score 76.00 61.700 67.600 69.500 61.500 49.100 56.300 58.800 .00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 HT&NNL B2C B2B G2B Hà Nội Điểm Trung bình Ha Noi Average Score 71.300 54.400 68.00 70.700 61.500 49.100 56.300 58.800 .00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 HT&N NL B2C B2B G2B Đà Nẵng Điểm Trung bình Đa Nang Average Score 61.500 49.100 56.300 58.800 52.900 49.300 43.600 50.700 .00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 HT&NNL B2C B2B G2B Điểm Trung bình Kon Tum Average Score Kon Tum
  • 85 The next five leading localities are Binh Duong, Can Tho, Bac Ninh, Thưa Thien – Hue and Quang Ninh. Binh Duong (63.2) overtook Can Tho (62.5) and remained the 6th place. Some localities had no changes in comparison with 2012, such as Ca Mau (51.2), Binh Phuoc (50.9) and Kien Giang (52.4). Dien Bien Index The distance between the average scores of the five localities having the highest scores and the five localities having the lowest scores is 18 points. It can be said that the ten localities having the lowest scores are far from the economic centers due to the lack of human resources and infrastructures… Internet connection is a need for the development of e-commerce. In comparison between 2012 and 2013, Vietnam needs to make the big efforts in order to shorten the digital distance in general and the readiness of E-commerce application in particular among localities. 61.500 49.100 56.300 58.800 52.600 42.600 45.400 51.700 .00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 HT&NNL B2C B2B G2B Điểm Trung bình Điện Biên Average Score Dien Bien