Vietnam Government sets targets for e-commerce in 2016-2020

“E-commerce is one of the most important factors in helping Vietnamese enterprises boost domestic and export markets, join global value chains, and increase national competitiveness for international integration,” the Decision stated.

The goal is to not only help businesses increase market share but also bolster the efficiency of government administrative services.

“National e-commerce systems will be built and developed to better use models such as Business-to-Consumer (B2C), Business-to-Business (B2B), Government-to-Citizen (G2C), and Government-to-Business (G2B),” according to the Decision.

Targets include 30% of the population buying goods and services online, with average annual spending being US$350 per person; revenue from online B2C to increase to US$10 billion, accounting for 5% of total retail spending in the country; and online B2B to account for 30% of total export turnover in 2020.

Regarding the application of e-commerce in business, the government targets 50 per cent of enterprises updating their websites frequently; 80% ordering and receiving orders from e-commerce applications; all supermarkets accepting POS and non-cash payments; 70% of electricity, water, telecommunications and TV providers accepting non-cash bill payments; and 50% of individuals and households in major cities using non-cash payments when spending.

In terms of the application of e-commerce by State authorities, the government has targeted all public services from ministries and central authorities to be at Level 3 (see accompanying box) this year; 50% of public services relating to exports to be provided at Level 4 by 2020; 30% of public services relating to commercial and business activities to be at Level 4 by 2020; and all information relating to bid selection and 50% of public spending contracts to be published on the national bidding system.

The majority of Vietnamese, however, remain anxious about conducting online transactions.

“Vietnam has great potential for developing non-cash services, but consumers still have concerns,” Mr. Vo Tan Long, Director of Digital Banking at VPBank, told VET.

The reason for the slow development of non-cash payments in Vietnam come from both customers and providers.

According to Long, most Vietnamese are still not accustomed to using banking services and more time is needed for this to change. Security is also a matter that makes people reluctant to use non-cash payments.

From a banking and business perspective, investment in non-cash payments is expensive, and “if we don’t invest there is no market, but if there is no market there is no reason to invest,” Long said.