Outdated database, policies hinder sharing economy development
Outdated database, policies hinder sharing economy development
Databases and policies that have failed to keep pace with the market’s development have hindered the development of the sharing economic model.
At a workshop themed “Strengthening the implementation of the project to promote the sharing economy model,” held in Hanoi on October 10, Pham Xuan Hoe, deputy director of the Banking Strategy Institute, noted that the project had been approved by the prime minister on August 12.
The project is aimed at creating a fair business environment for enterprises applying the sharing economy and traditional models and encouraging innovation and the application of digital technology.
Vietnam holds strong potential for developing the sharing economy. Recently, Google, Temasek and Bain & Company released a report on the e-economy in Southeast Asia this year. Accordingly, Vietnam’s digital economy will be worth US$12 billion this year and US$43 billion by 2025 through the ecommerce, online tourism, online communications and ride-hailing sectors.
This year, Vietnam has 61 million Internet users. A Vietnamese user spends an average of three hours and 12 minutes per day using the Internet on mobile devices such as smartphones.
However, the country has faced obstacles in the form of outdated policies. The market has grown rapidly, but the State management agencies tend to be conservative and sluggish.
Moreover, the lack of a database has been a major hindrance to the sharing economy’s development. Hoe cited Deputy Prime Minister Vuong Dinh Hue as saying that up to half of the ministries and agencies have yet to share their data.
According to Nguyen Thi Tue Anh, deputy director of the Central Institute for Economic Management, the State management agencies should change their thinking to accept new ideas and allow the trial of new economic models. Unreasonable regulations should be abolished.
Ngo Vinh Bach Duong, head of the economic law division at the Institute of State and Law, shared this view, noting that antiquated regulations on competition, consumer protection, personal data security, contracts and taxes are no longer appropriate to the rapid growth of the economy.
The Government should remove unreasonable business conditions instead of trying to fit obsolete regulations, currently applied to traditional business models, to modern models. Policymakers must also place greater emphasis on protecting consumers’ rights.
