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E-trade catches opportunities from the pandemic

(VLR) Despite difficulties and crises from the COVID-19 pandemic, e-trade has been a strongly developing field, connecting supply chains and good flows in the time of the pandemic. The pandemic has shortened the progress of developing e-trade applications from 1 to 2 years compared to plans to 2025…

COVID-19 created a completely new painting of e-trade

Since the outbreak of the COVID-19 pandemic, the phrases ‘e-trade’ and ‘digital economy’ has been trendy. The pandemic has changed all socio-economic life aspects worldwide. However, on the positive side, it has been considered a big push to promote growth of e-trade and digital economy, become an effective solution for Vietnam’s enterprises overcome difficulties and changed consumers’ habit from their traditional buying to buying things through e-trade.

In the seminar with the theme ’Digital Economy- The Key of Growth in The New Normality’ on September 16, Nguyen Ngoc Dung, Deputy Chairman of Vietnam E-Trade Association said the pandemic had shortened the progress of developing e-trade applications from 1 to 2 years compared to plans to 2025…

Assessment by the Ministry of Industry-Trade showed from 2016 to now, the growth of e-trade in Vietnam has been 25%-30%pa. B2C revenue has increased from USD 5bn in 2016 to USD11.8bn in 2020- Very optimistic figures of Vietnam’s digital economy. It is expected in 2025, B2C revenue will be USD35bn, accounting for 10% of retail sales nationwide. It was estimated that the money spent buying online of each Vietnamese was USD240/person/year. The number was predicted to be USD 600/person/year in 2025.

Solutions to promote e-trade, digital economy

Although digital economic activities in Vietnam have been growing strongly, especially in the fields of financial technology, telecommunications, computer and electronic manufacturing, and information technology services, there have still been a number of difficulties and obstacles as weak and non-synchronous legal and institutional environment, cash-intensive economy, state’s management agencies being confused with quick growing new types of business… these are barriers that should be soon removed.

Resolution 52-NQ /TW dated September 27, 2019 by the Politburo on “A number of guidelines and policies to actively participate in the fourth industrial revolution” has identified digital economic development as a pillar. , is a key strategic task in the process of national digital transformation development in the coming years and sets a goal that by 2025, Vietnam’s digital economy will account for 20% of GDP, and by 2030, 30% of GDP.

Nguyen Thai Hai Van- General Director of Grab Vietnamsuggested promoting public-private cooperation between the Government and enterprises to use technology platforms, maintaining anti-epidemic activities and promoting digital economic developments. At the same time, there should be consensus in recognition of the role of delivery people as an important link of the supply chain. In cities and provinces, there have been supporting policies to delivery people’s activities. In many countries, delivery people have been considered a part of their anti-epidemic frontline force.

To build breakthrough solutions and make good use of opportunities for e-trade development in the coming time, from the perspective of a supply chain maintainer, Van raised two issues. First, it is necessary to have a policy to promote e-trade so that small business households or small and medium-sized enterprises can participate in this wave as quickly as possible because this is the target group that can go very deeply into the environment, serving the essential needs of Vietnam’s consumers.

Second, of non-cash payment, which will become a great lever for development, especially in safe operating conditions when living with the epidemic. Grab’s data shows that up to 45% of Grab users use cashless payment and there is an increasing trend. Last August, the number of people using cashless payments for the first time in services on Grab increased by nearly 30% compared to the previous month. Therefore, it is necessary to have mechanisms and policies to promote non-cash payments in the near future.

From the perspective of an enterprise operating the e-trade floor- Tiki’s representative Nguyen Thanh Long- Marketing Director- shared his thoughts Tiki is a Vietnam’s enterprise that has been operating for 10 years, on the basis, a digital enterprise needs 3 main pillars to develop: policy, technology and human operators. In term of policy, they are much open, but they should be particular guidance when being issued. This helps enterprises not misunderstand the policies.

In term of technology, although they do not have advantages in resources, Tiki is the unit that applied latest technologies as cloud computing, AI, even did experiments on robotic technology to Tiki’s warehouses.

In term of human operators, Tiki has been conducting important campaign as ‘From Farm to Table” with support from the Departments of Industry-Trade of Hanoi and HCMC. It required technology applied from farmers and will create a common resource for the whole digital economy. Long hoped the barriers will be lift in the coming time.

Hoai Nhan

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Ngày 18/01/2022 lúc 08:50

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