Dec 13, 2012

Vietnam - E-commerce: skipping Beta, marching towards 2.0 (Part 3)

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VietNamNet Bridge – The words “taking off” or “in full swing” have not been used any more when talking about the prospect of e-commerce in Vietnam, because they were used many years ago and the predictions did not come true. However, people have every reason to expect a happy ending for the story about the e-commerce development in the country.

Lazada, just after eight months of operation, has got 10 million customers in Vietnam. The noteworthy thing is that does not seek clients from the parent group’s partners, but it has been doing business independently, looking for its own partners and clients in the Vietnamese market.

Just after a short time, the brand has become the partner of many manufacturers who provide more than 9000 products.

The online retailer has had a large storehouse in Binh Tan district of HCM City, a big workforce (300 workers just serve Lazada), and continual marketing campaigns, which all are the redoubtable rivals to domestic enterprises.

While foreign brands have been trying to localize their marketing methods to get adapted to the conditions in Vietnam, domestic brands have been trying to upgrade their services to have the service models like the ones in developed countries.

PeaceSoft, which owns, is considered the pioneer in the field. As for payment methods, PeaceSoft thinks of joining forces with Sacombank and CyberSource of VISA international card organization, becoming the first class international payment portal.

When customers buy products on, they just have to enter the information about their cards (Visa, MasterCard, JCB…) one time into the e-wallet, and then log into the wallet accounts to make payment on the websites that accept the payments with, while no need to repeat the card information.

In terms of deliveries, PeaceSoft has joined forces with five express forwarding service providers, put tool into operation, thus allowing the enterprises doing business on using the services to receive and deliver goods.

With the heavy investment in all relevant services, experts say, all the links of a complete e-commerce process have been ready.

“In the near future, businesses would not only set up sale websites of their own, but also set up stalls on online trading floors to take full advantage of the large custom of the floors to advertise their products and seek partners,” said Nguyen Hoa Binh, General Director of PeaceSoft, when explaining why PeaceSoft decided to build up a close e-commerce process.

Businesses would see a lot of advantages when they open kiosks on trading floors. They would get support in advertisement tools such as SEO or Email Marketing, and they can run their ad pieces on the online ad network—Adnet. All would help them access potential clients.

Regarding the competition in the market, Nguyen Hoanh Tien, Deputy General Director of VNG, has noted that with the current small scale, the competition would be moderate and would not be too stiff in the immediate time, even with the presence of international groups in the Vietnamese market.

Nevertheless, the recent moves by the investors, both domestic and foreign, showed their determination to make profits from e-commerce and heat up the market.

According to the E-commerce and Information Technology Department of the Ministry of Industry and Trade, 130 investors have registered the establishment of e-trading floors. Of these, the department has confirmed the registration for 35 websites. By the end of 2011, more than 1.5 million transactions on 30 websites have been reported, worth 4130 billion dong.

1 USD = 21,000 VND.


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