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

Jan 27, 2015

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Vietnam e commerce report 2013 VECITA - Báo cáo Thương mại điện tử 2013 (Tiếng Anh)
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Page 1: Vietnam E-commerce report 2013 VECITA - Báo cáo Thương mại điện tử 2013 (Tiếng Anh)

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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

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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

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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

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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

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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

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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

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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

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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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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

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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

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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

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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)

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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

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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

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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.

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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)

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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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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

3Including products or services ordered using the Internet, regardless of the method of payment or fulfillment;

excluding travel and event tickets.

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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

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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.

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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

7Digital 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

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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

8This figure includes travel, digital downloads and tickets and excludes gambling, converted at the exchange rate of

US $1 = AUD 0.97

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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.

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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

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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

Page 30: Vietnam E-commerce report 2013 VECITA - Báo cáo Thương mại điện tử 2013 (Tiếng Anh)

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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

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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

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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 delivery Electronic wallet Bank transfer Mobile/Games cards

Payable cards

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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

Page 34: Vietnam E-commerce report 2013 VECITA - Báo cáo Thương mại điện tử 2013 (Tiếng Anh)

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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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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.

Page 37: Vietnam E-commerce report 2013 VECITA - Báo cáo Thương mại điện tử 2013 (Tiếng Anh)

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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

Page 38: Vietnam E-commerce report 2013 VECITA - Báo cáo Thương mại điện tử 2013 (Tiếng Anh)

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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

Page 39: Vietnam E-commerce report 2013 VECITA - Báo cáo Thương mại điện tử 2013 (Tiếng Anh)

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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

Others 78%

14%

8%

Page 40: Vietnam E-commerce report 2013 VECITA - Báo cáo Thương mại điện tử 2013 (Tiếng Anh)

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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%

Pay

men

t

Ship

men

t

War

ran

ty

Del

iver

ing

goo

ds

Can

celli

ng

goo

ds

Co

nfi

rmin

g o

rder

via

em

ail

Co

nfi

rmin

g o

rder

via

SM

S

Sto

re m

anag

emen

t

Ord

er m

anag

emen

t

Del

iver

y co

ntr

olli

ng

Bill

of

lad

ing

con

tro

llin

g

Tru

st e

valu

atio

n

Pro

du

ct e

valu

atio

n

Dig

ital

sig

nat

ure

Sup

po

rtin

g tr

ansa

ctio

n o

f …

On

line …

Ad

vert

isem

ent

Soci

al n

etw

ork

inte

grat

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Sto

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Sho

pp

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cart

Page 41: Vietnam E-commerce report 2013 VECITA - Báo cáo Thương mại điện tử 2013 (Tiếng Anh)

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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

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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

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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.

Page 44: Vietnam E-commerce report 2013 VECITA - Báo cáo Thương mại điện tử 2013 (Tiếng Anh)

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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%

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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%

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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

Page 47: Vietnam E-commerce report 2013 VECITA - Báo cáo Thương mại điện tử 2013 (Tiếng Anh)

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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%

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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%

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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

Page 50: Vietnam E-commerce report 2013 VECITA - Báo cáo Thương mại điện tử 2013 (Tiếng Anh)

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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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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

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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

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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

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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

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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.

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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

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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

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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

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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).

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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

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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%.

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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

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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

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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

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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%).

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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

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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

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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 Others 2012 2013

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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

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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.

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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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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

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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.

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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

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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.

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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

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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.

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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

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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.

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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

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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

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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&NNL

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

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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