Introduction to Ecommerce

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Introduction to Ecommerce

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What is e-commerce Why we are interested in E-commerce? Issues need to solve to apply E-commerce Solutions

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  1. Introduction of E­ commerce  Tran Thanh Hai E­commerce Derpartment Ministry of Trade, Vietnam www.mot.gov.vn / www.ecvn.gov.vn 1
  2. Contents • What is e­commerce • Why we are interested in E­commerce? • Issues need to solve to apply E­commerce • Solutions www.mot.gov.vn / www.ecvn.gov.vn 2
  3. What is E-commerce? • Simply, using electronic means/methods to implement  commercial activities • ... Behind this there is a great changes in habits, culture  and traditional activities in commerce world • E­commerce:  ... new products & services (only a little) ... new markets (only new way to approach markets) • … more important: establish a new methods of transations,  increase efficiency, competitive capacity, expansion of  markets www.mot.gov.vn / www.ecvn.gov.vn 3
  4. Why are we interested in E-commerce • Expansion of markets – website and internet is bounderless • Reduction of cost, more convenience transactiosn – Email: speed, more information – Longer distance, less cost & time • Exploitation of information resources on the internet – 24/7 access, continuously updated – searching, contact and dealing with customers www.mot.gov.vn / www.ecvn.gov.vn 4
  5. Why are we interested in E-commerce? • Cosumers – More choices to meet the demands – Purchase anywhere, any time – Digital products can be delivered immediately • Society – New business style (online style) – Expansion of new markets through market info. system – Assistance for less­developed areas’s commercial acts. – SMEs’s have more opportunities – Incentives for e­Governments www.mot.gov.vn / www.ecvn.gov.vn 5
  6. Roles of Internet in E-commerce • Advantages over the other media – telephone – fax – radio – television – newspaper/magazines • Internet has all the advantages of the other media www.mot.gov.vn / www.ecvn.gov.vn 6
  7. Forms of E-commerce • Based on means of transactions – People ­ people: tel, fax, email, chat – People ­ machines: ATM, Credit card, online retails – Machines ­ machines: interbank transactions • Based on participants of transactions – B2B: whole sales, material procurement, ... – B2C: retails of products & services – G2B: e­tax, e­bidding – G2C: administration procedures, tax, fine... www.mot.gov.vn / www.ecvn.gov.vn 7
  8. Infrastructure for E-commerce ELECTRONIC COMMERCE Sale ­ Purchase E­marketplace E­payments E­Contracts Promotion Bidding ICT: Computers,  bandwidth, cost... Society: laws, tax,IPR, ... Human: perception, culture, habits www.mot.gov.vn / www.ecvn.gov.vn 8
  9. A basic model of e-retail Physical Products Digital products Advertising  Order Distribution Payments www.mot.gov.vn / www.ecvn.gov.vn 9
  10. Some examples of E-commerce (VN) (i) • Online stores – www.golmart.com.vn – www.vinagifts.net – www.chibaoshop.com.vn – www.vdcsieuthi.com.vn • E­ Books shop – www.nhasachvn.com – www.tienphong­vdc.com.vn • Online services – www.nhacso.net – alofun.vietnamnet.vn www.mot.gov.vn / www.ecvn.gov.vn 10
  11. Some examples of E-commerce (VN) (ii) • E­market places (B2B portals) International – www.ec21.co m – www.buyusa.com – www.alibaba.com Vietnam – www.ecvn.gov.vn – www.vnet.com.vn – www.vnemart.com.vn – www.vietoffer.com – www.goodsonlines.com.vn www.mot.gov.vn / www.ecvn.gov.vn 11
  12. People’s perception about E-commerce • Why are people hesitated? – Sellers’ worry about not receiving payments – Buyers’ worry about not receiving the goods or quanlity  of goods is not as expected – Both’s worry about security of transactions (credit card,  transaction info...) • We need a legal framework for E­commerce to  – Protect participants – Deal with frauds, criminal... www.mot.gov.vn / www.ecvn.gov.vn 12
  13. E-commerce in Vietnam • Quite rapid development • 17.500 websites of business (out of 200.000 businesses) • 50 e­marketplace & almost all products online • Online services – Education – Mobile commerce – Music, film • CA/digital signature: VASC, VDC, Nacencom • E­payment: ACB, VCB, EAB www.mot.gov.vn / www.ecvn.gov.vn 13
  14. Current barriers (i) • Knowledge, perception about e­commerce • Lack of trust – Lack of knowledge & understanding  lack of trust ! – Possibility of fraud in online environment – Lack of legel framework & legal enforcement • Business activities – Changes in structure, human, process... Need times • Changes in culture , purchasing habits – Changes from viewer to purchaser www.mot.gov.vn / www.ecvn.gov.vn 14
  15. Current barriers (ii) • Security ­ Privacy – Prevent loss of credit card info – Prevent risks (fraud, fishing....) – Privacy • Payment (banking) – Not enough ATM, lack of linkage among banks • Not obvious advantages – ISBN & online sales of books www.mot.gov.vn / www.ecvn.gov.vn 15
  16. Results • Changes of communication and business habits – Speed ­> requires fast reaction – Dependence ­> on technology – Bounders of commercial activities ­> expansion • Control of Internet: open or close? – Vietnam vs Japan: 18 century • How to promote e­commerce – A tale of Vietnam’s hero – A three years old becomes a hero fighting foreign  enemies – Where to have the support: horse, helmet, spear – Actually during the fight, the spear broken, he used  bamboo trees – Where’s the trust of businee people? www.mot.gov.vn / www.ecvn.gov.vn 16
  17. The next steps to E-commerce (2006) • Completion of legal framework & regulations – E­transaction law – E­commerce decree – Strategy & plan for development of e­commerce • Co­operation among industries • Increase the perception of people about e­commerce • Businesses need to voluntarily participate in e­commerce • Government’s support – E­commerce Portal (www.ecvn.gov.vn) www.mot.gov.vn / www.ecvn.gov.vn 17
  18. Conclusions • For N for E­commerce – Nhận thức Perception – Nhân lực People – Nối mạng Network – Nội dung Content thanhhai@mot.gov.vn www.thanhhai.com www.mot.gov.vn / www.ecvn.gov.vn 18
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