Technology remains driving force for ecommerce growth: officials
Vietnam is completing the legal frameworks for the ecommerce sector which local experts say is in need of a complete ecosystem, with technology playing a crucial role, to achieve stronger growth.
Tran Trong Tuyen, general secretary of the Vietnam E-commerce Association (VECOM), highlighted the important role of technology in developing the local ecommerce sector at an event to launch White Book 2019 recently.
Tuyen stressed that to obtain stable growth, the sector requires a complete ecosystem, including telecom infrastructure, advanced information and technology systems that will enable local residents to get easier access to the internet through mobile devices and the building of trust in online transactions and logistics services.
Also, online business owners would find it easier to approach public services as well as mobilize capital for their businesses, noted the VECOM representative.
The country saw impressive growth in the local ecommerce sector last year, with a 30% increase in revenue, at some US$8 billion. The figure is forecast to reach US$15 billion by 2020, stated Dang Hoang Hai, head of the Ecommerce and Digital Economy Agency at the Ministry of Industry and Trade.
Seeing the high growth rate, many firms may join the ecommerce sector and reap positive results, under the condition that they are able to take advantage of technology, since getting involved in the sector will cost them a large amount of capital if they fail to apply technology to their operations, Tuyen noted.
Alongside technology, companies with an interest in the field should bear in mind that it takes time to reap profits from ecommerce businesses, explained the VECOM representative. Accordingly, these companies have to invest in and apply consumer-friendly technology to their ecommerce platforms.
As for small and medium enterprises (SMEs) that usually have limited capital, personnel and experience, Tuyen advised them to use technologies that are custom-made for SMEs, which will help them save costs and increase their competitiveness.
Local SMEs would struggle to compete in the field if they do not leverage technology right now, Tuyen stressed.
Regarding the impressive growth rate of the sector, Hai expected that Vietnam would become one of the three strongest ecommerce countries in the region.