September 22, 2019 06:26

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E-commerce is motivation for export growth

13:45 | 10/09/2019

VCN- The strong development of e-commerce is expected to bring opportunities for goods exports of businesses.

e commerce is motivation for export growth Online sale: looking at real product photos but accidentally buying fake goods
e commerce is motivation for export growth Need to manage import and export goods via e-commerce
e commerce is motivation for export growth Alarm violation in e-commerce
e commerce is motivation for export growth
Besides direct exports, online exportsarepopular amongsmall- and medium-sized enterprises. Photo: N.H

Opportunity for export growth

Mr. Pham Thiet Hoa, Director of the Ho Chi Minh City Investment and Trade Promotion Center (ITPC), said that Vietnam has great potential for digital economy development.

According to Nielsen Vietnam and Miniwatts Marketing Group, 85% of Vietnam's population uses the the internet, ranking 13th in the countries with the most internet users. Vietnamese consumers spend an average of 7 hours per day online. Up to 90% of the urban population and 50% of the rural population use smartphones. E-commerce revenue in 2018 reached about US$8 billion, an increase of over 30% compared to 2017. Vietnam is among the top 3 fastest growing e-commerce markets in the world followed by Thailand and Singapore. With a growth rate of about 30% per year, it is forecast that by 2020, e-commerce revenue in Vietnam will reach about US$15 billion.

Facing the strong development of e-commerce and the digital economy, Mr. Nguyen Huy Hoang, Commercial Director of Kantar Worldpanel, said that e-commerce is one of the three main motivations to boost export growth in Vietnam. The Asian market is considered a potential market for export activity via e-commerce with over 60% of the world's population and a priority area for using mobile phones with the number of mobile phone user higher than others. Asia is considered a top contender for e-commerce development and will continue to grow. With the trend of multi-channel shopping, businesses need to study and strengthen the coordination between traditional and online models to exploit this potential market.

Recently, e-commerce has helped many Vietnamese businesses expand export activities to foreign markets. Typically, through e-commerce, Love Nature Handicraft Import and Export Company Limited has exported its products not only to markets in Southeast Asia but alsoto markets in Europe, China and India.

Mr. Tran Tan Thien, Chairman of the Board of Directors and General Director of Hello5 Coffee Joint Stock Company also said that seven years ago, Hello5 coffee products was exported to the US market through Amazon's distribution channel. When Amazon Global Selling's program approached the Vietnamese market, the company exported its products to the US. After a period of increasing sales, the Company receives notices from Amazon about the sale.

Risks in transactions

According to Thien, the strong development of e-commerce has brought advantages for exports but has also brought disadvantages. Accordingly, businesses must understand clearly about thier partners. For example, every day businesses receive many messages and emails from different sources.

According to Mr. Chau Viet Bac, Deputy General Secretary of Vietnam International Arbitration Center (VIAC),along with the development of information technology and especially the internet, Vietnamese businesses usethe internetto sign newcontracts, especially in international trade. According to the Department of E-commerce and Digital Economy under theMinistry of Industry and Tradein 2018, 28% of businesses conducted e-commerce transactions.

Regarding the disadvantages in e-commerce, Mr. Bac said electronictransactionstools will automatically store information, save time and cost of transporting and documents for parties. However, the disadvantage is thattheycannot control the accuracy of communication tools and cannot control the competency of people working through exchange tools, so it is easy to create risks.

Currently, electronic evidence is accepted in court and arbitration is becoming a popular trend. In its26 years of operation, VIAC has also applied adigital technology process, resolved disputes related to electronic incidents such as documents and email transactions, built a management process to resolve disputes by electronic tools, and handled disputes by applying online methods.

“The legal value of contracts and electronic documents is accepted in most regulations. However, when making a transaction with "digitized" elements, a safe digital instrument must be applied during the contract,the transactions must be made in writing to ensure evidence. Although development in the trend of digital economy is necessary, the element of written evidence should be usedto minimize risks and disadvantages when disputes arise,”Bac said.

By Nguyen Hue/Ngoc Loan