Vietnam Companies Lag Behind in E-commerce Adoption

Strategic Insights -

Despite increasing internet usage, companies in Vietnam are not fully leveraging e-commerce to sell their products and services, according to the Ministry of Trade. The infrastructure and personnel needed to support e-commerce are in place, but most companies have not integrated the web into their long-term business plans. However, businesses across the country are recognizing the importance of information technology in raising productivity and expanding market share. The government is also taking steps to strengthen laws on telecommunications and e-commerce, with a Law on E-transactions now in effect.

Key Takeaways:

  • The Ministry of Trade notes that companies in Vietnam need to make better use of e-commerce to sell their products and services, as internet usage is increasing but businesses are failing to fully utilize the web.
  • Businesses are becoming increasingly aware of the importance of information technology in raising productivity and expanding market share, with the number of IT specialists working in companies rising rapidly.
  • Several universities are now offering e-commerce in their curricula, which is expected to contribute to a shortage of skilled IT personnel in the industry.
  • To strengthen e-commerce in Vietnam, the government needs to issue guiding documents for the Law on E-transactions, which is now in effect but lacks specific guidelines.
  • US-based company Emarketer estimated that by mid-2005, Vietnam had an estimated 10 million people using the internet, representing 12.5% of the population.
  • The Ministry of Trade's e-commerce department reported 17,500 business websites in Vietnam as of the end of 2004, mostly limited in scope and selling digital products, cards, and handicrafts.

Statistics:

  • Estimated 10 million internet users in Vietnam by mid-2005, representing 12.5% of the population (Emarketer).
  • Projected 16-18% increase in internet users in Vietnam by early 2006, with 13-15 million people expected to access the internet (Emarketer).
  • Number of business websites in Vietnam: 17,500 (Ministry of Trade's e-commerce department) as of the end of 2004.
  • Percentage of population with access to internet in Vietnam by mid-2005: 12.5%.

Sources:

  • Ministry of Trade, Vietnam
  • Emarketer, US-based company
  • VNA (Vietnam News Agency)
  • Ministry of Trade's e-commerce department (June 23, 2005, quote from Asia Pulse)