CHAPTER I: LEGAL FRAMEWORK ON E-COMMERCE 4 I. THE CORE LEGAL FRAMEWORK FOR E-COMMERCE IN VIETNAM 5 II. INTRODUCTION TO THE LEGAL DOCUMENTS RELATED TO
E-COMMERCE 10 1. Decree No. 52/2013/ND-CP on E-commerce 10 2. Introduction to Circular No. 12/2013/TT-BCT stipulating the procedures of 14 notification, registration and promulgation of information related to e-commerce websites
3. Introduction to the legal documents related to e-commerce activities 16 III. LEGAL TEXTS ON SANCTIONING ADMINISTRATIVE VIOLATIONS IN
E-COMMERCE 17 1. Legal texts on sanctioning administrative violations in e-commerce 17 2. Criminal sanctions in e-commerce 18
CHAPTER II: E-COMMERCE APPLICATION IN COMMUNITY 20 I. VIETNAM'S B2C MARKET SIZE IN COMPARISON WITH THE WORLD 21 1. United States 21 2. Japan 22 3. China 23 4. India 24 5. Indonesia 24 6. Australia 25 7. Vietnam 26 II. E-COMMERCE APPLICATION IN COMMUNITY 28 1. The usage of Internet 28 2. Participation in e-commerce activities in community 29 3. Effectiveness of applying e-commerce in community 31
CHAPTER III: THE OPERATION STATUS OF E-COMMERCE WEBSITES 34 I. ADMINISTRATION OF E-COMMERCE WEBSITES 35 1. E-commerce administration portal 35 2. The models of e-commerce service websites on registration 36 3. List of e-commerce websites in recommending consumer’s caution and violation of law 36 2
38 II. THE STATUS OF E-COMMERCE WEBSITES
38 1. General overview 42 2. Information Technology Infrastructure 44 3. Payment infrastructure 45 4. Human resources 46 5. The operating costs of e-commerce service websites 47 6. The operational status of e-commerce service websites in different types
CHAPTER IV: E-COMMERCE APPLICATION IN ENTERPRISES 50 II. THE READINESS OF E-COMMERCE APPLICATIONS IN ENTERPRISE 53 1. The usage of computer in enterprises 53 2. The usage of Internet 54 3. The usage of email 55 4. Information security and data privacy 56 5. Staffing for e-commerce 58 III. E-COMMERCE APPLICATION STATUS IN ENTERPRISES 60 1. E-commerce software application 60 2. Establishment and utilization of websites 61 3. Enterprises participating in e-marketplaces 64 4. Receiving and placing orders via electronic means in 2013 66 IV. ENTERPRISES’ EVALUATION OF E-COMMERCE APPLICATION 68 EFFICIENCY
1. Investment in IT and E-commerce enterprises 68 2. E-commerce application efficiency 69 3. Obstacles 70 CHAPTER V: ELECTRONIC BUSINESS INDEX – EBI 72 I. INTRODUCTION 73 II. HUMAN RESOURCES AND INFORMATION TECHNOLOGY 74 INFRASTRUCTURE INDEX
III. B2C INDEX 76 IV. B2B INDEX 78 V. G2B INDEX 80 VI. LOCAL E-BUSINESS INDEX 83 3
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 E-transaction implementation of the E-transaction Law on Law digital signature and C/A services 23/02/2007 Decree No.27/2007/ND-CP on electronic E-transaction transactions in financial activities Law 08/03/2007 Decree No.35/2007/ND-CP on electronic E-transaction transactions in banking activities 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 Law on guiding the implementation of some articles of Telecommunicati the Law on Telecommunication 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 5
13/06/2011 Decree No. 43/2011/ND-CP detailing regulations Law on IT on the provision of online information and services on websites or e-portals of State agencies 23/11/2011 Decree No. 106/2011/ND-CP amending and E-transaction supplementing Decree No. 26/2007/ND-CP on Law Degial Signature and Certification Authority services 5/10/2012 Decree No. 77/2012/ND-CP amending and E-transaction supplementing Decree No. 90/2008/ND-CP on Law Anti-spam 22/11/2012 Decree No 101/2012/ND-CP on non-cash Law on IT payment (supersedes Decree No.64/2001/ND-CP on payment operations via the payment service providers) 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, Law on IT provision and use of Internet services and online information 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 Law on IT administrative violations in information technology 20/09/2011 Decree No. 83/2011/ND-CP on sanctioning Law on administrative violations in the sector of Telecommunicati telecommunication 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 6
prohibited goods and protection of the consumers’ rights Circular guiding the implementation of some provisions in Overidding text the decrees 15/09/2008 Circular No.78/2008/TT-BTC guiding the Decree No. implementation of several provisions of Decree 27/2007/ND-CP No.27/2007/ND-CP of 23 February 2007 on e- transactions in the financial activities 30/12/2008 Circular No. 12/2008/TT-BTTTT guiding the Decree No. implementation of several provisions of Decree 90/2008/ND-CP No. 90/2008/ND-CP on Anti-spam 2/3/2009 Circular No. 03/2009/TT-BTTTT stipulating the Decree No. codes of managemenet and the certification 90/2008/ND-CP templates of these code for e-mail, messages and Internet messages advertisement service providers. 16/3/2009 Circular No. 50/2009/TT-BCT guiding on Decree No. electronic transactions on the stock market. 27/2007/ND-CP 31/7/2009 Circular No. 26/2009/TT-BTTTT stipulating the Decree No. provision of information on and assurance of 64/2007/ND-CP access to government agencies’ websites 14/12/2009 Circular No. 37/2009/TT-BTTTT stipulating Decree on digital procedures and required documents for the signature and CA registration, licensing, and recognition of digital service signature certification authorities 22/07/2010 Circular No. 17/2010/TT-BKH detailing pilot Decree No. online bidding 26/2007/ND-CP 9/11/2010 Circular No. 23/2010/TT-NHNN stipulating the Decree No. managements, operations and use of inter-bank 35/2007/ND-CP electronic payment system 10/11/2010 Circular No. 180/2010/TT-BTC guilding Decree No. instructions on electronic transactions in the sector 27/2007/ND-CP of taxation 15/11/2010 Circular No. 25/2010/TT-BTTTT stipulating the Decree No. collection, use, share, safety assurance and 64/2007/ND-CP protection of personal information on websites or e-portals of State agencies 20/12/2010 Circular No. 209/2010/TT-BTC stipulating Decree No. electronic transactions in the professional 27/2007/ND-CP operations of the State Bank. 7
14/3/2011 Circular No. 32/2011/TT-BTC guiding the Decree No. creation, issuance and use of electronic invoices 27/2007/NĐ-CP for goods sales and service provision 10/9/2012 Joint Circular No.10/2012/TTLT-BCA-BQP- Penal Code BTP-BTTTT-VKSNDTC-TANDTC guilding the provisions of Penal Code on some violations in the fields of information technology and communication. 20/6/2013 Circular No. 12/2013/TT-BCT stipulating the Decree No. procedures of notification, registration and 52/2013/ND-CP publicizing information related to e-commerce websites.
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
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) Nature of transaction Business activities Responsibilities Civil Code and obligations of parties in Law on E-commerce transactions business Enterprises activities Mechanism of civil Legal system on Mode of Commercial Legal system on dispute Information Law E-commerce transaction settlement techology
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 10
Structure of Decree on E-commerce Chapter 1: General provisions •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 2: Contracting in e-commerce •Electronic communications in trade transactions •Contracting by use of online order function on e-commerce websites Chapter 3: E-commerce activities •Operation of sale e-commerce websites •Operation of e-marketplaces •Operation of online sale promotion websites •Operation of online auction websites Chapter 4: Management of 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 5: Safety and security in e-commerce transactions •Personal information protection in e-commerce •Payment safety in e-commerce transactions Chapater 6: Settlement of disputes, inspection, examination and handling of violations Chapter 7: Implementation provisions
operations outsite the to choose the the territory of territory of Vietnam Decree to apply - Be present in Vietnam Vietnam (branch, representative office, website having ".vn" domain name)
National e-commerce development program
Contracting process on e-commerce websites with online ordering functions
Management of e-commerce operation
E-COMMERCE OPERATION MANAGEMENT PORTAL
E-commerce Registration Notification Websites E-commerce service E-commerce sale websites websites Online sale Online auction E-marketplaces promotion websites websites
Provisions of personal information protection in the Decree on E-commerce Obligations for preserving personal Evaluation and certification of data in E-commerce policies on personal information protection Responsibilities for protection of consumers’ personal information Traders, organizations Policies on protection of consumers’ are certificated to personal information perform Asking consumers’ permission for collection of information Must have operation Use of personal information project, criteria and process to evaluate the Safety and security of personal compliance with information MOIT’s regulations (approved when being Check, update and correction of licensed) personal information
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
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
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 E-newspaper Personal Website for under the General Internal website website specialized form of a website (blog) application website Commerce, Provide information Provide Established Finance, about the function, Established information by an Banking tasks, operation and on the basis individual sectors and other operated in of quoting Culture, necessary accordance accurately Health, information serving with the from Education the operation of the Established Law on official agencies, through a Press information organizations, social resources Other enterprises service sectors network
Social specialized Licensing Licensing network: managment Lilcensing
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,
- 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 17
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 c 18 or rection
of untruthful or misleading information of administrative violations. The Decree comes into effect on January 01, 2014.
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 Factors to determine and frame the punishment • 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 Identification of victim • 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. Sequences, procedures of collecting evidence (electronic data) • 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
Detailing contents of Article 226b - Penal Code The crime of using computer networks, telecommunications networks, Internet or digital devices to appropriate property Other acts situplated at Point đ Cheating in e-commerce means Clause 1 Artilce 226b includes: using deceitful rackets, giving false - Sending a fraud message for a prize to - Making information about a product, a appropriate fees for message counterfeit servicesbut there is no prize in reality ; matter, a field in e-commerce ... in bank cards order to create confidence for the - Avertising to sell goods on the - Illegally Internet, telecommunication networks property owner or property access to without delivering or delivering a accounts manager to make them believe that wrong quantity or kind of goods, or the information is true and buy, sell delivering goods with lower quality or invest in these fields. than advertised - Similar acts
• To appropriate a property valued at between VND 50,000,000 to 200,000,000, or Sentenced to • Causing physical damage worth between VND 50,000,000 to between 3 &7 years 500,000,000 imprisonment • To appropriate a property valued at between VND 200,000,000 to 500,000,000, or Sentenced to • Causing physical damage worth between VND 500,000,000 to between 7 &15 years 1,500,000,000 imprisonment • To appropriate a property valued at VND 500,000,000 and above Sentenced to • Causing physical damage worth VND 1,500,000,000 and above between 12 & 20 years imprisonment
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
2 Internet users age 14 and more; have made at least one online purchase 3Including products or services ordered using the Internet, regardless of the method of payment or fulfillment; excluding travel and event tickets. 22
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 23
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
5Converted at the exchange rate of $1 = RMB 6.07 6Figures include travel, digital downloads, event tickets, sales from e-commerce businesses that occur over B2C platforms; excludes gambling; excludes Hongkong. 24
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 19.2 24.6 30.0 36.2 41.8 (million people) Estimation of Online purchase 632 665 691 708 724 per online user (USD) 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) 4.49 3.56 2.60 1.79 1.04 2012 2013 2014 2015 2016
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.)
8This figure includes travel, digital downloads and tickets and excludes gambling, converted at the exchange rate of US $1 = AUD 0.97 26
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 Internet users E-commerce sales Online buyer B2C e-commerce population penetration (% per online buyer penetration sales 2013 population) 2013 (% Internet users) 90 36% $ 120 USD 57% $ 2.2 billion mil.people 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.
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 Internet E-commerce Online buyer B2C e-commerce Population user sales per penetration (% sales 2015 2015 penetration online buyer Internet user) (% 2015 population) Growth Rate 2015 level 93 million 45% 150 USD High 70% $US 4.3 billion people Moderate 65% $US 4.08 billion Low 60% $US3.7 billion Source: Forecasts by E-commerce and Information Technology Agency 28
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 60% 50% 46% 12% Desktop Laptop Mobile phone Other devices
Source: Survey of E-commerce and Information Technology Agency 2013
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 Others 60% For work purpose 70% Buy & sell online 20% Participate in forums or social … 73% Access email 71% Play Games 37% Watch movies, photos, listen to music 66% Research & study 58% Update information 87%
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 30
Online purchase by genders Male 41% Female 59%
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 41% 37% 15% 7% Manager/Office Sales/Production Students Others staffs staffs
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.
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 74% 41% 8% 9% 11% Cash on delivery Electronic wallet Bank transfer Mobile/Games Payable cards cards
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. 32
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 Product quality worse than advertised 77% Price (not lower than traditional 40% shopping/not clear stated) Unprofessional shipping & delivery 38% service Concerns over personal privacy 31% disclosure Complicated online order procedures 29% Unprofessional website design 20% Others 2%
Source: Survey of E-commerce and Information Technology Agency 2013 33
Reasons for people not shopping online Difficult to examine quality of products 59% Easy and fast to buy in stores 45% Not having trust in sellers 41% Not having enough information to … 38% Not having credit cards or payable cards 37% No online selling/buying 26% Never try 22% Complicated online oder procedures 20% Low internet connection 6% Unable to use online shopping functions 6%
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 88% 12% Yes No
Source: Survey of E-commerce and Information Technology Agency 2013 34
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 102 118 notification/registration 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. 36
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 E-marketplace 90 Online sale promotion website 13 Combined website 13
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. 37
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 20,3% 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 3 Violation of information on e-commerce websites 7,2% 4 Using link website to provide conflicting or incorrect information 4,3% compared with published information in website areas to which are linked this link 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 1,4% illegally from other traders, organizations and individuals Source: www.online.gov.vn An example warning posted on the E-commerce Administration Portal
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 80% 60% 60% 45% 40% 19% 18% 18% 20% 0% Online stores Classified Buying-in-group Forum Others advertisement
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 14% Enterprises 8% Foreign investment Others 78%
Source: Survey of E-commerce and Information Technology Agency 2013 1.2. Products, services introducing on the websites 39
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 Clothing, shoes and comestic 79% Computer, mobile and electrical equipment 73% Home appliances 70% Travel tourism 70% Books, stationery 67% Foods, milk 64% Flowers, gifts 63% Machinery, auto and motor vehicles 55% Lumber and other construction material 52% Entertainment 52% Miscellaneous services 24% Miscellaneous products 24%
Source: Data gathered by E-commerce and Information Technology Agency 2013 1.3. The tools and supporting utilities on e-commerce websites 11.6% 10.1% 9.7% 9.5% 8.9% 9.4% 8.7% 7.5% 6.5% 5.9% 3.5% 2.8% 2.8% 1.9% 1.0% 0.4% 0% 0% 0.1% 0.1%
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Source: Survey of E-commerce and Information Technology Agency 2013
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 Social networks 87% Search engines 84% Connection to other sites 61% Online news 58% Newspaper 25% Television 13% Others 13% 0% 20% 40% 60% 80% 100%
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) 1.41 1.61 1.82 1.99 2.16 2.33 2012 2013 2014 2015 2016 2017
Source: www.eMarketer.com, November 2013 41
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 Total visits (Millions) (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 42
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.
The rate of software used in business administration Accounting 90% CRM 45% HRM 45% SCM 21% ERP 18% Others 21% 0% 20% 40% 60% 80% 100%
Source: Survey of E-commerce and Information Technology Agency 2013
Information security measures Firewall 87% Anti-virus 84% Hardware 45% Digital signature, digital certificate 36% Others 9% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Source: Survey of E-commerce and Information Technology Agency 2013
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 30% 48% Integration None Going to have 22%
Source: Survey of E-commerce and Information Technology Agency 2013 Online payment methods are chosen to use in business Ngan Others luong 31% 27% Bao Kim 24% Smartlink 9% Onepay 9%
Source: Survey of E-commerce and Information Technology Agency 2013 45
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 42% 34% 24% Technical staffs Customer relations Others employees
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 80% 59% 60% 49% 40% 20% 0% Yes No
Source: Data gathered by E-commerce and Information Technology Agency 2013 46
Forms of Training IT and E-commerce On-site training to meet requirements 90.91% Send employee out for training 33.33% Open class 15.15% No training 4.55%
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 60% 50% 40% 30% 20% 10% 0% Human Infrastructure Advertisement Others resources 1/8/2012 25% 47% 22% 6% 1-8/2013 15% 54% 17% 14%
Source: Survey of E-commerce and Information Technology Agency 2013 47
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 others 17% nhommua.vn 3% hotdeal.vn 54% muachung.vn 26%
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
others 11% hotdeal.vn muachung 52% .vn 37%
Source: Data provided by enterprises in 2013 48
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 16% hotdeal.vn 46% muachung.vn 14% nhommua.com others 24%
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 49
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 50
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 105% 100% SME 6% 6% 95% 11% 10% 15% 90% Large Enterprises 85% 94% 94% 89% 90% 80% 85% 75% 2009 2010 2011 2012 2013
Source: Survey of Vecita in 2013 52
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 53
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 2010 2011 2012 2013 72% 55% 50% 52% 23% 21% 21% 16% 19% 16% 16% 9% 11% 10% 6% 3% 1-10 11-20 21-50 Trên 50
Source: Survey of Vecita in 2013 The number of computers in enterprises by regions
Source: Survey of Vecita in 2013
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 22% ADSL Leased line 78%
Source: Survey of Vecita in 2013
Internet connection methods by regions 120% Ha Noi Ho Chi Minh 98% 100% Hai Phong Da Nang 85% 82% 84% 80% Can Tho 67% 60% 40% 33% 15% 18% 16% 20% 2% 0% ADSL Leaseline
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%).
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.
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 57
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.
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
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
65% 51% 33% 20% 23% 2009 2010 2011 2012 2013
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
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).
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 61
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%. 62
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 63
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 96% 92% 56% 56% 41% 18% Enterprises Product Customer Recruiment Product Online payment Introduction introduction services introduction
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 64
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 50% 41% 40% 30% 26% 26% 20% 7% 10% 0% 1 2 3 4
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%. 65
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%). 66
The 10 popular e-marketplaces well-known by enterprises 25% 22% 20% 14% 15% 10% 5% 5% 4% 3% 3% 3% 2% 5% 2% 0%
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 Telephone Fax Email Website electronic means 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 86 94 83 71 70 70 2012 2013 29 35 Telephone Fax Email Webiste
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. 67
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 87% 95% 83% 2012 2013 66% 67% 68% 50% 33% Telephone Fax Email Website
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
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 45 41 42 40 35 30 26 24 25 18 20 17 17 15 15 10 5 0 Hardware Software 2012 Education 2013 Others
Source: Survey of Vecita in 2013 69
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 2.55 2.5 2.45 2.4 2.35 2.3 Customer Enterprise Lower expense Higher profit communication introduction
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 70
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.
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 3.07 2.55 2.36 2.47 2.42 and business environment Online payment 2.76 2.39 2.30 2.29 2.13 system 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 2.89 2.49 - - - awareness IT and - - - -
Communication Infrastructure Average point 2.78 2.41 2.28 2.29 2.15 The gap between 0.51 0.26 0.27 0.41 0.52 the highest and lowest points Source: Survey of Vecita in 2013
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 74
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.
Human resources and Information Technology Indexes
Ha Noi 1 76.0 Ho Chi Minh city 2 73.9 TT.Hue 3 71.8 Da Nang 4 71.3 Hai Phong 5 70.8 Binh Duong 6 70.6 Thai Nguyen 7 70.4 Khanh Hoa 8 69.7 Can Tho 9 69.6 Bac Ninh 10 66.6 BRVT 11 65.4 Nghe An 12 65.0 Dong Nai 13 64.9 Long An 15 64.8 Thanh Hoa 14 64.8 Tien Giang 16 64.7 Hai Duong 17 64.4 Quang Ninh 18 64.3 Binh Dinh 19 64.1 Lam Dong 20 63.9 Dong Thap 21 63.7 Ha Nam 22 63.4 Binh Thuan 23 63.0 Phu Tho 24 63.0 Kien Giang 25 62.7 Tra Vinh 26 62.1 Ninh Binh 27 60.5 Dak Lak 28 59.8 Hung Yen 29 59.4 Gia Lai 30 58.5 Phu Yen 31 58.0 Vinh Long 32 57.9 Yen Bai 33 57.5 Ninh Thuan 34 57.3 Quang Ngai 35 55.6 Ben Tre 36 54.7 Soc Trang 37 54.0 Bac Lieu 38 53.9 Binh Phuoc 39 53.0 Kon Tum 40 52.9 Bac Can 41 52.7 Dien Bien 42 52.6 Ca Mau 43 52.6 Lang Son 44 51.9 Cao Bang 45 51.6 Hau Giang 46 51.5 Dak Nong 47 51.3
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.
B2C Transaction Indexes Ha Noi 1 61.7 Ho Chi Minh city 2 58.9 Bac Ninh 3 55.9 Hai Phong 4 55.6 Can Tho 5 55.5 Khanh Hoa 6 55.3 Quang Ninh 7 54.7 TT.Hue 8 54.4 Da Nang 9 54.4 Vinh Long 10 54.1 BRVT 11 53.9 Thanh Hoa 12 53.4 Binh Duong 13 52.7 Dong Nai 14 51.3 Ninh Thuan 15 50.5 Hai Duong 16 50.4 Quang Ngai 17 50.2 Nghe An 18 49.8 Bac Lieu 19 49.6 Hau Giang 20 49.5 Binh Thuan 21 49.5 Kon Tum 22 49.4 Dak Nong 23 49.3 Ha Nam 24 49.3 Gia Lai 25 48.1 Binh Phuoc 26 47.7 Dong Thap 27 47.5 Lang Son 28 47.2 Yen Bai 29 47.0 Bac Can 30 46.3 Thai Nguyen 31 46.0 Phu Yen 32 45.8 Long An 33 45.7 Lam Dong 34 45.6 Ben Tre 35 45.5 Ninh Binh 36 45.2 Phu Tho 37 45.1 Kien Giang 38 45.0 Ca Mau 39 44.8 Binh Dinh 40 44.6 Hung Yen 41 44.3 Cao Bang 42 44.1 Soc Trang 43 44.0 Dak Lak 44 43.3 Tien Giang 45 42.7 Dien Bien 46 42.6 Tra Vinh 47 40.2
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.
B2B Transaction Indexes Binh Duong 1 73.9 Dong Nai 2 71.8 Ho Chi Minh city 3 71.7 Hai Phong 4 69.2 Da Nang 5 68.0 Ha Noi 6 67.6 Thai Nguyen 7 65.1 Nghe An 8 64.5 Phu Tho 9 63.5 Ninh Binh 10 63.4 Can Tho 11 62.7 Bac Ninh 12 62.1 Phu Yen 13 61.8 Long An 14 60.5 Thanh Hoa 15 59.7 Khanh Hoa 16 59.6 Tien Giang 17 59.1 Quang Ninh 18 58.7 BRVT 19 58.0 Hai Duong 20 57.7 Binh Dinh 21 57.1 Hung Yen 22 57.0 Dong Thap 23 55.3 Lam Dong 24 55.1 TT.Hue 25 54.9 Binh Thuan 26 54.3 Tra Vinh 27 54.0 Cao Bang 28 53.8 Quang Ngai 29 53.3 Dak Lak 30 53.1 Vinh Long 31 52.6 Lang Son 32 52.2 Ben Tre 33 51.0 Kien Giang 34 50.9 Binh Phuoc 35 49.8 Yen Bai 36 49.8 Ca Mau 37 49.6 Hau Giang 38 49.0 Ninh Thuan 39 49.0 Ha Nam 40 48.5 Soc Trang 41 48.0 Gia Lai 42 47.4 Bac Lieu 43 47.0 Dak Nong 44 45.5 Dien Bien 45 45.4 Kon Tum 46 43.6 Bac Can 47 42.4
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.
G2B Transactions Indexes Ho Chi Minh city 1 72.1 Dong Nai 2 70.7 Da Nang 3 70.7 Ha Noi 4 69.5 Quang Ngai 5 65.8 Can Tho 6 65.7 TT.Hue 7 65.6 Ninh Thuan 8 65.3 Quang Ninh 9 65.0 Hai Phong 10 64.1 BRVT 11 63.0 Hai Duong 12 62.9 Ca Mau 13 61.8 Long An 14 61.6 Tien Giang 15 61.3 Thai Nguyen 16 61.1 Binh Dinh 17 61.0 Dong Thap 18 60.8 Nghe An 19 60.6 Cao Bang 20 60.2 Vinh Long 21 59.7 Bac Ninh 22 59.5 Lang Son 23 59.3 Phu Yen 24 58.7 Thanh Hoa 25 58.1 Soc Trang 26 57.9 Ben Tre 27 57.1 Hung Yen 28 56.9 Ha Nang 29 56.4 Dak Lak 30 55.8 Kien Giang 31 55.7 Khanh Hoa 32 55.4 Binh Duong 33 55.4 Yen Bai 34 55.3 Binh Phuoc 35 55.2 Phu Tho 36 55.1 Lam Dong 37 54.8 Ninh Binh 38 53.5 Tra Vinh 39 52.2 Dien Bien 40 51.7 Bac Lieu 41 51.5 Dak Nong 42 51.1 Kon Tum 43 50.7 Bac Can 44 50.5 Gia Lai 45 49.6 Hau Giang 46 48.1 Binh Thuan 47 48.0
2013 EBI Indexes Ho Chi Minh city 1 68.4 Ha Noi 2 67.9 Da Nang 3 65.1 Hai Phong 4 64.4 Dong Nai 5 64.1 Binh Duong 6 63.2 Can Tho 7 62.5 Bac Ninh 8 60.6 TT.Hue 9 60.3 Quang Ninh 10 59.9 Thai Nguyen 11 59.6 Khanh Hoa 12 59.5 Nghe An 13 59.4 BRVT 14 59.3 Thanh Hoa 15 58.5 Hai Duong 16 57.9 Long An 17 57.1 Phu Tho 18 56.2 Dong Thap 19 55.7 Tien Giang 20 55.7 Phu Yen 21 55.6 Vinh Long 22 55.5 Binh Dinh 23 55.5 Ninh Binh 24 55.4 Quang Ngai 25 55.3 Ninh Thuan 26 54.4 Lam Dong 27 54.0 Hung Yen 28 53.7 Binh Thuan 29 53.3 Ha Nam 30 53.2 Kien Giang 31 52.4 Dak Lak 32 52.1 Lang Son 33 52.0 Cao Bang 34 51.7 Yen Bai 35 51.6 Ben Tre 36 51.3 Ca Mau 37 51.2 Tra Vinh 38 51.1 Binh Phuoc 39 50.9 Gia Lai 40 50.3 Soc Trang 41 50.0 Bac Lieu 42 50.0 Hau Giang 43 49.5 Dak Nong 44 48.9 Kon Tum 45 48.6 Bac Can 46 47.3 Dien Bien 47 47.3
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
Tp. HCM HCM city Hà Nội Ha Noi HT&NNL
HT&NNL 80.00 80.00 76.0 70.00 0 73.970.00 00 Average 60.00 60.00 Điểm Trung Average 6 61 50.00 .500 Điểm Trung 50.1 00 .500 bình score 40.00 40.00 bình Score 30.00 30.00 20.00 20.00 10.00 58.800 10.00 58.900 58.800 61.700 .00 G2B B2C .00 G2B B2C 49.100 72.100 49.100 69.500 56.300 56.300 67.600 71.700 B2B B2B
Da Nang Index Kon Tum Index
HT&N Đà Nẵng Đa Nang NL Average Điểm Trung 80.00 HT&NNL bình Score 71.370.0 00 0 Điểm Average 70.00 60.00 Trung bình 60.00 61 Kon Tum Kon Tum 50.00 .500 Score 61.500 50.00 40.00 52.900 40.00 30.00 30.00 20.00 20.00 10.00 58.800 54.400 10.00 .00 G2B B2C 70.700 50.700 49.100 49.100 .00 G2B B2C 58.800 49.300 56.300 43.600 68.00 56.300 B2B
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 HT&NNL 70.00 61.50 60.00 0 50.00 52 40.00 .600 30.00 20.00 Điểm Tr Ave un ragg e b ình Sco re 10.00 51.700 .00 49.100 G2B B2C 58.800 42.600 Điện Biên Dien Bien
45.400 56.300 B2B
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.