In the country’s e-commerce industry, online payments account for only 3 to 4 per cent, while cash on delivery (COD) is still at 92 per cent.

This holds true even though e-commerce has seen rapid development in Viet Nam in recent years, said Le Duc Anh, from the Viet Nam E-commerce and Digital Economy Agency (VECITA) under the Ministry of Industry and Trade

Anh attributed this to the lack of trust between customers and sellers.

Statistics from VECITA in 2016 showed that people often purchase clothes, shoes, cosmetics (56 per cent) and hi-tech and electronics products (55 per cent), as well as home appliances (48 per cent), air and railway tickets (45 per cent) and food (26 per cent) online.

Goods are often traded through online channels, including commercial websites, transaction floors, group buying, social networks and mobile phone apps.

In reality, most Vietnamese people are worried about the quality of products purchased online, thus making them hesitate in paying online. Meanwhile, local businesses have not built the trust necessary for customers to change their purchasing habits.

He added that the increasing number of businesses joining the e-commerce market could create a more fierce competition.

The country now has over 25,000 websites registering with the ministry for online transactions. The number of e-commerce firms has significantly increased from 13,000 in 2016 to 19,000 in 2017.

“E-commerce companies should improve their products and sale services quality,” he added.

The VECITA survey also revealed that online customers often paid most attention to the quality of goods and products (81 per cent), prices (79 per cent) and sellers’ reputation (69 per cent).

Products and services bought online are often not what were promised. This has reduced trust among buyers online.

Anh noted that building trust with customers has been a vital factor for online trading firms. In addition, they have to ensure quality, true advertisement, on-time delivery and also maintain prestige.

Viet Nam has a shortage of a system to supervise the quality of goods for e-commerce companies, causing difficulties for both sellers and buyers.

In the time to come, the ministry would have stamps ensuring the quality of products to make it easier for customers to buy online.

According to Nguyen Van Thien, CEO of Adam Group, businesses should pay attention to products with high consumption, big market scale and necessity in demand. Products in the price range of VND250,000-600,000 (US$10-26) should be easy for customers to select, while purchasing online.

In addition, up to 90 per cent of domestic businesses have not given priority to research and development (R&D) for their products and ignored market trends.

Many Vietnamese firms have concentrated on a key product and forgotten that each item should be special. They should therefore always develop new products to keep up with continuous changes in current consumption habits, Thien said.

Local companies were also urged to take advantage of the fourth industrial revolution to enhance competitiveness and maximize resources. — VNS