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Enhancing management to facilitate e-commerce applications
Ngoc Thuy 17:29, 2017/12/18
E-commerce is considered as key to help enterprises accessing customers, reducing expenses compared to traditional business method. However, the application of e-commerce into enterprises’ business activities still has shortcomings.
Deputy Head of Vietnam E-commerce and Digital Economy Agency (VECITA) under the Ministry of Industry & Trade Lai Viet Anh said, Vietnam is considered to have the the highest growth of e-commerce in the world at rate of 35% per year, and is 2.5 times higher than Japan. According to the report of the Future of E-commerce in Fast-moving consumer goods (FMCG) released by Kantar Worldpanel, sales of groceries through e-commerce platforms grew by 30% in the 12 months to March 2017, with significant value growth in Thailand (+104%), Malaysia (+88%) and Vietnam (+69%) where e-commerce is in early stages. 
 
Vietnam is considered to have the the highest growth of e-commerce in the world at rate of 35% per year.
Vietnam is considered to have the the highest growth of e-commerce in the world at rate of 35% per year.
A continent of tech-savvy consumers and avant-garde retailers like Alibaba, has made Asia a natural home for e-commerce growth. But due to low starting point, it is expected that after a period of rapid growth, the Vietnam’s e-commerce will slow down in the next phase. 

E-commerce now contributes to a record 36% of global FMCG growth, making it crucial for retailers and brand owners to understand and unlock the channel as it becomes more prevalent. As such, Kantar Worldpanel projections show that by 2025, online FMCG will be a USD 170 billion-dollar business, and hold a 10% total market share—up from 4.6% in 2016. South Korea and China will continue to lead the way and Asia in general remains at the cutting edge of online adoption.

Vice Chairman of Vietnam E-commerce Association Le Hai Binh said, with numerous advantages of e-commerce in having more customers and revenue, in recent years, the number of enterprises applying e-commerce in business activities have increased significantly compared to 5 – 7 years ago.  However, applying e-commerce to join the global value chain of enterprises still have limitation and modest, as about 21% of enterprises have linkage to the supply chain. Evidently, some sector have high value from goods export, but the added value is quite low due to the dependence on imported materials and the growth model based on cheap labor; the rate of technologies application in management of enterprises is still low.

With the current trend, Mrs. Lai Viet Anh said, one of the key to improve export and business activities of enterpirses is e-commerce. As such, if small and medium enterprises (SMEs) spend more than 30% of their budget for technologies, the revenue is expected to be 9 times higher than enterprises spending less than 10%. 

Despite being considered as key to help enterprises accessing customers and reducing expenses, there remains difficulties for enterprises in e-commerce. As there are enterpirses taking goods in some e-commerce website such as Lazada and Sendo. This has helped enterprises to reduce expenses in personnel, better informing customers about goods information. However, enterprises have to pay a considerable amount to these e-commerce websites, and facing high risks of customers cancelling contracts. With regard to bottleneck of enterprises in applying e-commerce, Mr. Le Hai Binh said, the key issue is the lack of determination from enterprises, but not from technologies or capitals. As revenue increase does not match expectation, while enterprises have to invest more, or even change the way of management is not a feasible solutions for some.
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