SMEs using e-commerce well

Saturday, Oct 31, 2015 09:00

A production line for Casumina motorcycle tyres in Dong Nai Province. Domestic SMEs have made full use of e-commerce to increase turnover and profits. — VNA/VNS Photo Danh Lam
HA NOI  (VNS) — Vietnamese exporters have not used websites effectively for their operations, while small and medium-sized enterprises (SMEs) have made full use of e-commerce.

The results of a study on the Internet, e-commerce and SMEs activities in Viet Nam, released in Ha Noi on Thursday, showed that the Internet has not ensured higher value for all sectors, while the number of computers have considerably contributed to SMEs' operations.

The study conducted by the Central Institute for Economic Management (CIEM), the Institute of Regional Sustainable Development (IRSD) and Viet Nam E-commerce Association (VECOM), and sponsored by tech giant Google, also said the Internet has helped to increase turnover and profits rapidly with the application of technology, especially in SMEs.

In addition, the Internet has also sharply reduced transaction costs and has created a level playing field for businesses.

Tran Kim Chung, CIEM's deputy director, said he was not surprised with the results as in reality, the Internet and IT played a vital role for businesses.

"Enterprises should take advantage of the Internet to develop, while modernising the economy," Chung said.

Alex Long, country lead, government affairs and public policy, Google Asia Pacific, said the Internet could contribute great value to an economy. Vietnamese businesses could utilise the Internet to cut costs, expand their markets and improve labour productivity.

He said Google wanted to co-operate with Viet Nam in helping its businesses to fully utilise the potential of the Internet.

Statistics from the industry and trade ministry's Viet Nam E-commerce and Information Technology Agency (Vecita) have revealed that with up to 40 per cent of its people using the Internet, Viet Nam is one of the fastest growing economies in terms of Internet users.

The country's e-commerce has been growing and providing potential as well as development opportunities to SMEs.

The e-commerce turnover reached US$2.2 billion in 2013, and is expected to touch $4 billion this year.

SMEs can expand their promotion, access international markets and reduce intermediate segments.

However, SMEs have also faced difficulties, especially tax issues. Businesses have had to pay about 20 per cent of their turnover for e-commerce services, excluding online advertisements.

The issue of brand protection has also been a headache for enterprises as a large number of copyright violations are occurring in the country.

The study suggested that the Government should provide a more favourable legal environment to the markets' development, both in Internet services and safe e-commerce transactions. — VNS

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