Vn E-Commerce Report 2014
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Transcript of Vn E-Commerce Report 2014
TABLE OF CONTENTS
CHAPTER I: MANAGEMENT OF E-COMMERCE ACTIVITIES
I. LEGAL FRAMEWORK FOR E-COMMERCE APPLICATION IN VIETNAM ........... 5
II. INTRODUCTION OF NEW LEGAL DOCUMENTS CONCERNING TO E-
COMMERCE ACTIVITIES ....................................................................................................... 9
1. The Investment Law and Enterprises Law 2014 ..................................................................... 9
2. Circular No.47/2014/TT-BCT stipulating on the management of e-commerce websites..... 10
3. Circular No.39/2014/TT-NHNN guiding on the intermediary payment services ................. 13
III. THE MANAGEMENT OF E-COMMERCE WEBSITES .............................................. 14
CHAPTER II: E-COMMERCE APPLICATION IN COMMUNITY
I. VIETNAM'S B2C MARKET SIZE IN COMPARISON WITH THE WORLD .............. 18
1. United States ......................................................................................................................... 18
2. Korea ..................................................................................................................................... 18
3. China ..................................................................................................................................... 19
4. India ....................................................................................................................................... 20
5. Indonesia ............................................................................................................................... 21
6. Australia ................................................................................................................................ 21
7. Vietnam ................................................................................................................................. 22
II. THE STATUS OF E-COMMERCE APPLICATION IN THE COMMUNITY ............. 23
1. The use of Internet................................................................................................................ 23
2. The use of e-commerce in community ................................................................................. 25
3. The efficiency of applying e-commerce in community ....................................................... 27
CHAPTER III: E-COMMERCE APPLICATION IN ENTERPRISES
I. GENERAL INFORMATION ................................................................................................ 32
1. Types of enterprises .............................................................................................................. 32
2. The business sector of enterprises ......................................................................................... 32
3. The scale of enterprises ......................................................................................................... 32
II. INFORMATION TECHNOLOGY AND HUMAN RESOURCES INFRASTRUCTURE
....................................................................................................................................................... 34
1. Hardware ............................................................................................................................... 34
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a. Computer ........................................................................................................................... 34
b. Cost structure for IT and E-commerce .............................................................................. 34
2. Software ................................................................................................................................ 35
3. Online Monitoring System .................................................................................................... 36
4. Email ..................................................................................................................................... 37
5. Staffing for e-commerce........................................................................................................ 38
III. THE TYPES OF TRANSACTIONS AND PAYMENT ON E-COMMENCE ............... 40
1. The types of sale .................................................................................................................... 40
a. Social networks .................................................................................................................. 40
b. Enterprises’ websites ......................................................................................................... 40
c. Mobile platform ................................................................................................................. 41
d. E-marketplaces .................................................................................................................. 42
e. The efficiency of the sales channels .................................................................................. 42
2. The payment method ............................................................................................................. 43
3. The privacy policy ................................................................................................................. 43
IV. THE STATUS OF E-COMMERCE WEBSITES OPERATION .................................... 44
1. The information update on e-commerce websites................................................................. 44
2. The mobile version of websites ............................................................................................. 44
3. Website functions .................................................................................................................. 45
4. The advertising methods of e-commerce websites ............................................................... 45
V. THE EFFICIENCY OF E-COMMERCE APPLICATION IN ENTERPRISES ............ 48
1. Receiving and placing orders via electronic means .............................................................. 48
2. The revenue of e-commerce enterprises in 2014 ................................................................. 50
VI. THE USE OF PUBLIC ONLINE SERVICE ..................................................................... 51
1. The status of online public services usage ............................................................................ 51
2. The evaluation of online public services usage ..................................................................... 51
CHAPTER IV: THE OPERATION STATUS OF E-COMMERCE SERVICE WEBSITES
I. GENERAL INFORMATION ................................................................................................ 53
1. Models and operations .......................................................................................................... 53
2. The investment capital .......................................................................................................... 54
3. Main income of the websites ................................................................................................. 54
4. The supporting utilities and tools .......................................................................................... 54
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5. Products, sale services on e-commerce service websites ...................................................... 55
6. Human resources ................................................................................................................... 55
7. Payment infrastructure .......................................................................................................... 56
II. THE OPERATION STATUS OF E-COMMERCE WEBSITESIN DIFFERENT TYPES
....................................................................................................................................................... 58
1. E-marketplace........................................................................................................................ 58
a. The sales operation and e-commerce service providing activities in e-martketplaces ...... 58
b. Investment and innovation technology .............................................................................. 59
2. Online promotion websites.................................................................................................... 60
a. Revenue ............................................................................................................................. 60
b. Promotion value ................................................................................................................. 61
c. The development of top revenue websites ......................................................................... 62
3. Online auction websites ........................................................................................................ 62
III. SETTLEMENT OF DISPUTES AND COMPLAINTS ON THE E-COMMERCE
SERVICE WEBSITES ............................................................................................................... 65
1. Policies and settlement of disputes........................................................................................ 65
2. Control mechanism and content management on the website .............................................. 65
3. Mechanisms for receiving complaints................................................................................... 65
CHAPTER V: THE STATUS OF E-COMMERCE SALE WEBSITES
I. GENERAL OVERVIEW ....................................................................................................... 68
1. Websites by geography ......................................................................................................... 68
2. Business range ....................................................................................................................... 69
3. Business sectors..................................................................................................................... 69
4. Human resource structure...................................................................................................... 69
5. Investment source .................................................................................................................. 70
6. Products and services on e-commerce sale websites ............................................................ 71
II. STATUS OF E-COMMERCE SALE WEBSITES ........................................................... 72
1. Supporting tools .................................................................................................................... 72
a. Supporting tools on e-commerce sale websites ................................................................. 72
b. Membership registration .................................................................................................... 72
c. Integration of social network ............................................................................................. 73
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d. Adoption of online payment function ................................................................................ 73
2. Website policies and support services ................................................................................... 74
a. Delivery policy .................................................................................................................. 74
b. Dispute settlement ............................................................................................................. 74
c. Advertising methods .......................................................................................................... 75
III. EXPENSE AND REVENUE OF E-COMMERCE SALE WEBSITE ............................ 77
1. Expense ................................................................................................................................. 77
2. Revenue ................................................................................................................................. 77
CHAPTER VI: E-COMMERCE IN MOBILE PLATFORM
I. E-COMMERCE ON MOBILE PLATFORM ..................................................................... 82
1. Model B2C ............................................................................................................................ 83
2. Model C2C ............................................................................................................................ 84
II. BANKING SERVICES – MOBILE PAYMENT ................................................................ 86
1. Electronic payment services on mobile ................................................................................. 86
2. E-banking services based on mobile devices ........................................................................ 87
III. INTERACTIVE SERVICES IN MOBILE ........................................................................ 89
1. Taxi booking service ............................................................................................................. 89
2. Services providing vouchers, coupons, membership cards ................................................... 90
IV. DIGITAL CONTENT SERVICES ..................................................................................... 92
1. Digital content business on mobile devices .......................................................................... 92
2. Digital map on mobile devices .............................................................................................. 93
V.APPLICATIONS AND GAMES ON MOBILE ................................................................... 94
1. Mobile application................................................................................................................. 94
2. Games on mobile devices ...................................................................................................... 95
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CHAPTER I MANAGEMENT OF E-COMMERCE ACTIVITIES
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I. LEGAL FRAMEWORK FOR E-COMMERCE APPLICATION IN VIETNAM
E-commerce is basically defined as the application of electronic means in business and
commerce. The subjects of e-commerce activities have to comply with the provisions on e-
commerce as well as the other relevant related to the investment, commercial, civil provisions…
On 26 November 2014, regarding the legal framework of business, the National Assembly of
Vietnam passed two new laws: Law No.67/2014/QH13 on Investment (Investment Law 2014)
and Law No.68/2014/QH13 on Enterprises (Enterprise Law 2014), both will take effect from 01
July 2015. Regarding the specialized provisions of e-commerce, on 05 December 2014, the
Ministry of Industry and Trade promulgated Circular No.47/2014/TT-BCT stipulating on the
management of e-commerce websites. 2014 has been a remarkable year for the appearance of
these two laws and Circular No.47/2014/TT-BCT with many changes on the legal framework of
e-commerce activities in Vietnam1.
Figure 1: Updating the basic legal framework on e-commerce in Vietnam 2014
Time Law
21/12/1999 Penal Code
14/6/2005 Civil Code
14/6/2005 Commercial Law
29/11/2005 Law on Electronic Transactions
29/06/2006 Law on Information Technology
23/11/2009 Law on Telecommunication
19/6/2009 Law on amending and supplementing several articles of the
Penal Code, No. 37/2009/QH12
21/6/2012 Law on Advertising
26/11/2014 Law on Investment
26/11/2014 Law on Enterprises
Decree to provide guidance on law Over ridding texts
15/02/2007 Decree No. 26/2007/ND-CP guiding the implementation of the
E-transaction Law on digital signature and C/A services
E-transactions Law
23/02/2007 Decree No.27/2007/ND-CP on electronic
transactions in financial activities E-transactions Law
08/03/2007 Decree No.35/2007/ND-CP on electronic transactions in
banking activities
E-transactions Law
13/08/2008 Decree No.90/2008/ND-CP on anti-spam E-transactions
06/04/2011 Decree No. 25/2011/ND-CP detailing and guiding the
implementation of some articles of the Law on
Telecommunication
Law
1 Introduction of related legal documents are provided in part II of this report
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Telecommunication
13/06/2011 Decree No. 43/2011/ND-CP detailing regulations on the
provision of online information and services on websites or e-
portals of State agencies
IT
23/11/2011 Decree No. 106/2011/ND-CP amending and supplementing
Decree No. 26/2007/ND-CP on Digital Signature and
Certification Authority services
E-transactions
5/10/2012 Decree No. 77/2012/ND-CP amending and supplementing
Decree No. 90/2008/ND-CP on Anti-spam
E-transactions
22/11/2012 Decree No 101/2012/ND-CP on non-cash payment (supersedes
Decree No.64/2001/ND-CP on payment operations via the
payment service providers)
IT Law
16/5/2013 Decree No. 52/2013/ND-CP on E-commerce E-transactions
15/7/2013 Decree No. 72/2013/ND-CP on management, provision and
use of Internet services and online information
IT Law
08/11/2013 Decree No.154/2013/ND-CP stipulation on the concentrated
zones of information technology IT Law
13/11/2013 Decree No.170/2013/ND-CP amending, supplementing some
articles of Decree No.26/2007/ND-CP dated 15 February 2007
of the Government detailing on implementation of Law on
Electronic Transactions on Digital signature and certification
services of digital signature services and Decree
No.106/2011/ND-CP dated 23 November 2011 of the
Government amending and supplementing some articles of
Decree No.26/2007/ND-CP dated 15 February 2007.
E-transactions
14/11/2013 Decree No. 181/2013/ND-CP detailing some articles of Law on
Advertising
Advertising Law
Decree on handling administrative violations Over riding texts
12/11/2013 Decree No. 158/2013/ND-CP on sanctioning administrative
violations in culture, sport, tourism and advertising.
13/11/2013 Decree No. 174/2013/ND-CP on sanctioning administrative
violations in the fields of posts, telecommunications,
information technology and radio frequency.
15/11/2013
Decree No. 185/2013/ND-CP on sanctioning administrative
violations in commercial activities, production, trading
counterfeit or prohibited goods and protection of the
consumers’ rights
07/4/2014 Decree No.25/2014/ND-CP on the preventing, combating
crimes and other violations of law using higt technologies
Circular guiding the implementation of some provisions in
the decrees
Overriding texts
15/09/2008 Circular No.78/2008/TT-BTC guiding the implementation of Decree No.
27/2007/ND-CP
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several provisions of Decree No.27/2007/ND-CP of 23
February 2007 on e-transactions in the financial activities
30/12/2008 Circular No. 12/2008/TT-BTTTT guiding the implementation
of several provisions of Decree No. 90/2008/ND-CP on Anti-
spam
Decree
No.90/2008/ND-CP
02/03/2009 Circular No. 03/2009/TT-BTTTT stipulating the codes of
management and the certification templates of these code for e-
mail, messages and Internet messages advertisement service
providers.
Decree
No.90/2008/ND-CP
16/03/2009 Circular No. 50/2009/TT-BCT guiding on electronic
transactions on the stock market.
Decree
No.27/2007/ND-CP
31/07/2009 Circular No. 26/2009/TT-BTTTT stipulating the provision of
information on and assurance of access to government
agencies’ websites
Decree
No.64/2007/ND-CP
14/12/2009 Circular No. 37/2009/TT-BTTTT stipulating procedures and
required documents for the registration, licensing, and
recognition of digital signature certification authorities
Decree
No.26/2007/ND-CP
22/07/2010 Circular No.17/2010/TT-BKH detailing pilot
online bidding Decree
No.26/2007/ND-CP
28/9/2010 Circular No.153/2010/TT-BCT guiding the implementation of
the Government’s Decree No.51/2010/ND-Cp dated 14 May
2010 stipulating on the form of invoice selling goods and
providing services
Decree
No.51/2010/ND-CP
9/11/2010 Circular No. 23/2010/TT-NHNN stipulating the managements,
operations and use of inter-bank electronic payment system
Decree
No.35/2007/ND-CP
10/11/2010 Circular No. 180/2010/TT-BTC guiding
instructions on electronic transactions in the sector
of taxation
Decree
No.27/2007/ND-CP
15/11/2010 Circular No. 25/2010/TT-BTTTT stipulating the collection,
use, share, safety assurance and protection of personal
information on websites or e-portals of State agencies
Decree
No.64/2007/ND-CP
20/12/2010 Circular No. 209/2010/TT-BTC stipulating electronic
transactions in the professional operations of the State Bank.
Decree
No.27/2007/ND-CP
14/3/2011 Circular No. 32/2011/TT-BTC guiding the creation, issuance
and use of electronic invoices for goods sales and service
provision
Decree
No.27/2007/ND-CP
10/9/2012 Joint Circular No.10/2012/TTLT-BCA-BQPBTP-BTTTT-
VKSNDTC-TANDTC guiding the provisions of Penal Code on
some violations in the fields of information technology and
communication
Penal Code
05/12/2014 Circular No.47/2014/TT-BCT stipulating on the management
of e-commerce websites (replaced Circular No.12/2013/TT-
BCT stipulating the procedures for notifying, registering and
Decree
No.52/2013/ND-CP
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publicizing information related to e-commerce websites)
11/12/2014 Circular No.39/2014/TT-NHNN guiding on the
intermediary payment services
Decree
No.101/2012/ND-
CP
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II. INTRODUCTION OF NEW LEGAL DOCUMENTS CONCERNING TO E-
COMMERCE ACTIVITIES
1. The Investment Law and Enterprises Law 2014
The Enterprises Law 2014 has various key changes in the concepts compared to the Enterprises
Law 2005, reflecting the right of freedom of enterprises in the Constitution 2013 when
conducting business. According to the Constitution, the enterprises have the right and may do
what the law does not prohibit2.
Figure 2: Introduction of the Enterprises Law 2014
No. Some new regulations of the Enterprises Law 2014
1 The procedures for establishment of enterpries will be separated with others on the
investment projects, investment certificate and creating opportunities for enterprises to
join the market.
2 The provisions of providing the sector code when registering business will be
deregulated. It means the enterprises have the right to do business and actively select the
forms, the sectors as well as the geographic when conducting business and they may also
self-actively adjust the scale of sectors and businesses.
3 According to the development trends in the means of electronic transactions, the use of
seals are significant reformed in this law. The enterprises have the right to decide on the
form, the number and the content of their seals accordance with the law; at the same time,
the enterprises are obliged to inform their seal forms to the business registration agency to
publicize on the National portal of business registration. According to this law, not all the
business texts have to be sealed but only on those texts that prescribed by law or required
by the partners.
4 The provisions on the proportion of state holding in the state enterprises now changing
from 50% to 100% of the charter capital.
2Quote of the Ministry of Justice Gazette on 03 December 2014 at the Portal of Justice
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There are 07 chapters and 76 articles in the Investment Law 2014, a part thereof has several new
changes ensuring that the legal framework are wide-open and attractive to the investment,
contributing a transparent environment, ensuring the interests of the holders and creating the best
benefit for the social and economic development.
The standing concept in the Investment Law 2014 consist of provisions which related to the
principle of freedom of business, as enterprises will have the right to conduct freely business in
sectors which are not prohibited by law.
The Investment Law 2014 gathers and governs the list of conditional and prohibited business
sectors according to the methods of exclusion, which has contributed to innovate the basic
principles of application in recent law. According to this law, the investors have the right to
conduct business freely in any sectors not prohibited by law, which has changed from the
principal provisions of investors could only conducting business that accepted by law3.
2. Circular No.47/2014/TT-BCT stipulating on the management of e-commerce websites
On 5 December 2014, the Ministry and Industry and Trade promulgated Circular
No.47/2014/TT-BCT, stipulating on the management of e-commerce websites, guiding some
regulations of the Decree No. 52/2013/ND-CP on E-commerce, which was promulgated by the
Government dated 16 May 2013. This Circular takes effect from 20 January 2015 and replaces
the Circular No.12/2013/TT-BCT stipulating the procedures for notifying, registering and
publicizing information related to e-commerce websites.
Figure 3: Approaching in formulating Circular No. 47/2014/TT-BCT
3 Quote of the Ministry of Justice Gazette on 8 December 2014 at the Portal of Justice
Adding some new provisions
1. Enhancing the management of business activites on e-commerce websites, social-network websites, online sale promotion websites.
2. Allocating the management scope of specific websites.
3. Enhancing the managementof conditional and prohibitedgoods on the e-commercewebsites.
4. Other provisions
Remaining some provisions of Circular No. 12/2013/TT-BCT
1. Provisions on the procedures for notifying, registering related to e-commerce websites
2. Provisions on publicizing information related to e-commerce websites
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Besides the remaining provisions of Circular No. 12/2013/TT-BCT on the procedures for
notifying, registering and publicizing information related to e-commerce websites, the Circular
No. 47 details certain provisions of the Decree No. 52/2013/ND-CP which related to: the
management of business on e-commerce websites, including the clearance of the responsibilities
to specific websites; the business operations of conditional or prohibited goods on e-commerce
websites; the management of the social-commerce websites.
Figure 4: Responsibilities of traders or organizations for notifying, registering or licensing
to the Ministry of Industry and Trade
NOTIFYING
Sales e-commerce websites
REGISTERING
E-commerce services websites
Trust evaluation of e-commerce
websites
LICENSING
Evaluation and certification of
policy on personal information
protection in e-commerce
E-contract certification
E-COMMERCE ADMINISTRATION PORTAL
WWW.ONLINE.GOV.VN
E-commerce websites
which have both forms
of operations: sales e-
commerce websites and
e-commerce services
websites
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Figure 5: Allocating responsibility for management of specific websites
Figure 6: Management of social-commerce websites
Circular No.47/2014/TT-BCT does not apply to these websites. These websites are governed by their respective specialized laws
Websites providing online services such as game, betting or
gambling
Websites in the fields of
finance, banking, credit and insurance Websites trading or
exchanging money, gold, foreign exchange and other means of payment
REGISTERING E-MARKETPLACES
The owners of social-networkwebsites which allowparticipants to establish e-kioskto display or introducegoods/services in their websites.
The owners of social-networkwebsites which allow participantsto establish the sub-web todisplay or introducegoods/services in their websites.
The owners of social-networkwebsites have the trading categorywhich allow participants to displaygoods/services
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Figure 7: Management of conducting conditional and restricted goods or services on e-
commerce websites
Subjects Sales e-commerce
websites
E-commerce services websites
CONDUCTING RESTRICTED GOODS
Traders,
organizations,
individuals
Not allowed Not allowed
CONDUCTING CONDITIONAL GOODS OR SERVICES
Individuals Not allowed Not allowed
Traders,
organizations
Being allowed to set up e-
commerce sales websites
for conducting the
conditional goods and
services and publicizing on
the websites the number,
date and place of issue of
business certification of
these goods and services as
prescribed by law
- Being allowed to use e-commerce services
websites for conducting the conditional
goods and services
-Conforming the condition of the conditional
goods and services as prescribed by law.
The owners of e-commerce services websites
in this case have to meet the responsibilities
as follows:
- Requesting the sellers to provide the
certification of eligibility for business when
conducting the conditional goods and
services as prescribed by law
- Removing from the websites, the
information of which trading goods or
services violated the law when self-detected
or received the authentication feedbacks
from the customers. (…4)
3. Circular No.39/2014/TT-NHNN guiding on the intermediary payment services
On 11 December 2014, The State Bank of Vietnam promulgated Circular No.39/2014/TT-
NHNN guiding on the intermediary payment services. This Circular takes effect from 01 March
2015, in order to guiding some provisions of the intermediary payment services which governed
in Decree No. 101/2012/ND-CP dated 11 December 2012 on non-cash payment.
4 Responsibilities of the owners of e-commerce services websites are governed in Article 4 of the Circular
No.47/2014/TT-BCT
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Figure 8: The type of intermediary payment services
Circular No.39/TT-NHNN clarifying the type of intermediary payment services and providing
specific provisions related to these services, including: the risk management, safety and security;
fiscal solvency; e-wallet activities. The intermediary service providers have to comply with the
provisions of the risk management, safety, security as follows:
- Developing and implementing the principles of risk management in electronic banking;
- Ensuring safety and security of information technology systems in banking activities;
safety and security for providing electronic banking services;
- Compliance with the provisions of banking services on the establishment, use,
preservation and storage of electronic communications in the Law on Electronic Transactions.
III. THE MANAGEMENT OF E-COMMERCE WEBSITES
After one year of implementing Decree No. 52/2013/ND-CP, there were 7,814 enterprises’
accounts and 3,418 individual’s accounts approved via the E-commerce Administration Portal.
The data of websites were notified and registered on this Portal in 2014 as follow:
- The numbers of registration e-commerce services websites were 1,112 websites, the
numbers which were confirmed till the end of December 2014 reaching 357 websites.
Services of providing e-payment
infrastructure
Services of support payment
services
Financial
switch
services
Electronic
clearing
services
E-payment
gateway
services
Support
services on
revenue and
expenditure
Support
services on
money transfer
services
E-wallet
services
TYPE OF INTERMEDIARY PAYMENT SERVICES
LICENSING
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- The numbers of notification sales e-commerce websites were 9,075 websites, the
numbers which were confirmed till the end of December 2014 reaching 5,082 websites.
Figure 9: Numbers of notification and registration e-commerce websites via the E-
commerce Administration Portal in 2014
Figure 10: Numbers of registration e-commerce services websites were confirmed
Figure 11: Popular violations according to consumers’ feedback on E-commerce
Administration Portal
No. Violations Percentage rate
(%)
2013 2014
1 Conducting e-commerce website without any notification or
registration
62,3% 87%
90
13 13
283
60
14
E-marketplaces Online sale promotion websites Online auction websites
2013 2014
16
2 Organizing marketing and promotion network for e-commerce
services in which each participants shall have to pay an initial
amount of money to buy services and receive commission, bonus
or other economic benefits from mobilizing others join the
network
20,3% 1,3%
3 Violation of information on e-commerce websites 7,2% 4,5%
4 Using link website to provide conflicting or incorrect information
compared with published information in website areas to which
are linked this link
4,3% 2,2%
5 Trading counterfeit or prohibited goods 2,9% 3,5%
6 Violation of transactions on e-commerce websites (eg: payment
fraud)
1,6% 1%
7 Making corrupt use of e-commerce websites’ operating to raise
capital illegally from other traders, organizations and individuals
1,4% 0,5%
In 2014, the complaints via the E-commerce Administration Portal reflected primarily on the
operation of e-commerce websites without any notification or registration to the Ministry of
Industry and Trade (87%). The rest of complaints (13%) were scattered related on providing
violated information (4.5 %) and selling counterfeit or prohibited goods (3.5%) on e-commerce
websites…
Figure 12: Implementation of handling administrative violations on e-commerce
in Ho Chi Minh City and Hanoi in 2014
No. City Number of cases Fines
1 Ho Chi Minh City 62 VND 1.22 billion
2 Hanoi 39 VND 769 million
In 2014, the inspection, examination and handling of the administrative violations on e-
commerce were primarily implemented in Ho Chi Minh City and Hanoi. The total number of
examined and processed cases in these two cities was 101, total administrative fines are
approximately VND 2 billion. The violation cases were mainly related to the activities of setting
up e-commerce websites as prescribed in Article 81 Decree No.185/2013/ND-CP on handling of
administrative violations in commercial activities, production and trading counterfeit and
prohibited goods and protection of consumers’ interests.
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CHAPTER II E-COMMERCE APPLICATION IN COMMUNITY
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I. VIETNAM’S B2C MARKET SIZE IN COMPARISON WITH THE WORLD
1. United States
The Census Bureau of the Department of Ecommerce announced that the estimate of online retail
sales for the first 3 quarters of 2014 was 224.3 billion US dollars, and the total online retail sales
of 2014 could reach 305.5 billion dollars. In the third quarter of 2014, the online retail sale was
estimated to increase by 4% comparing to the second quarter, and up 16.2% comparing with the
same period last year. Online retail sales of this quarter accounted for 6.1% of the total retail
sales of US in the third quarter.
Figure 13: The B2C retail sale of United States of Q3 2014
Source: Census Bureau – United States Department of Commerce (billion USD)
2. Korea
The regular Online Shopping Report by Statistics Korea in quarter 3 2014 announced that the
online transaction value increased 17.8% from the third quarter 2013, which recorded 11.4
thousand billion won (equivalent to US $ 10.5 billion)5. E-commerce sale accounted for 12.8%
of total sale, increased from 10.9% in quarter 3 2013.
Compared to the third quarter 2013, the share of online shopping for “Travel arrangement and
reservation services”, “Household goods, motor vehicle parts and accessories”, and “Home
electric appliances, electronic and telecommunication equipment” grew by 2.5%, 0.9%, and
0.5%, respectively. The share for “Food and beverages”, “Computer and computer-related
appliances”, “Agricultural and fishery products” experienced the slight decrease, but still among
the most popular group of commodity.
5 Converted at the exchange rate of $1 = Won 1088.33
19
Figure 14: B2C e-commerce sales in Korea of Q3 2014
Source: GSO Korea
3. China
According to the report on China E-Commerce Market of eMarketer, online retail sales of this
country grew 63.9% over the previous year, with the expected sales of 217.39 billion. This
growing rate will still be kept until 2018.
According to the report, in 2014, online retail sales in China accounted for more than 50% of the
total revenue of the Asia – Pacific. It is expected that in 2018, this figure will reach 70%.
Also as the content of the 33th Report on the development of Internet China data on the
development of 33 of the Internet’s Network Information Center of China Internet, the number
of online shoppers in the country at present is 302 million people. According to a survey of
Group M in June 2014, nearly 75% of online shoppers said they prefer buying online in brick-
and-mortal stores.
9,61
9,72
10,46
16,6%
14,4%
17,8%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
9
9.2
9.4
9.6
9.8
10
10.2
10.4
10.6
Q1 Q2 Q3
Online retail sales ( billion USD) Growth rate comparing to same period last year
20
Figure 15: Revenue from online retail sales in China 2013-20186
Source: www.eMarketer.com
4. India
According to the statistic of Internetworldstats, in 2014, the number of Internet users in India
was at around 195 million people, accounted 15.8% of the population. As eMarketer announced,
the number of online shoppers was 30 million people. The growth in e-commerce transactions in
2014 was 31.5%, B2C retail sales reached 20.7 billion USD. eMarketer said that each Indian
spent 691 USD for online shopping.
Figure 16: Growth rate of online retail sale in India 2012-2017
Source: www.eMarketer.com
6 The data include products and services that were ordered via the Internet using any devices, regardless of
payment method or manner of implementation; not include travel; not include Hong Kong.
132,61
217,39
298,38
377,24
455,88
527,06
87,1%
63,9%
37,3%
26,4%20,8%
15,6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
100
200
300
400
500
600
2013 2014 2015 2016 2017 2018
B2C retail sales (billion USD) The growth rate
35,9% 34,9% 31,5% 30,3%
24,5%
20%
2012 2013 2014 2015 2016 2017
21
5. Indonesia
Indonesia was the 4th
populated country in the world, with an estimated population of 253
million in 2014. Of which, there was 29.8% of the population, equivalent to about 74.6 million
people using Internet7 . According to eMarketer, the number of Internet users in Indonesia was
growing at an average rate of 20% a year in the period of 2013-2016. Currently, about 5.9
million people had been shopping online at least once.
As eMarketer predicted, online retail sales in Indonesia in 2014 would reach 2.6 billion USD,
accounting for 0.6% of total annual retail sales.
These items were most popular for online shopping in Indonesia including clothing, shoes,
handbags, watches, airline tickets, cell phones, gadgets for cars.
Figure 17: Growth in retail sales in Indonesia 2012-2017
Source: www.eMarketer.com
6. Australia
According to Online Retail Sales Index by the National Bank Australia (NAB) announced, the
online retail sales in Australia increased from 14.9 billion USD in 2013 to 16.3 billion USD in
2014. Online retail sales were accounted for approximately 6.6% of total retail sales in Australia.
According to NAB, products and services such as communications, food, fashion, were shopped
the most in this country. The item that currently had the highest growth rate was toys and games,
up 39.4% in November, though accounted to only 3% of share of the online retail market.
7 Data Miniwatts Marketing Group in 2014 in www.internetworldstats.com
85%
73%
45.10%37.20% 26%
22%
2012 2013 2014 2015 2016 2017
22
Figure 18: Growth of online shopping in Australia 2014
Source: National Bank Australia
7. Vietnam
According to the survey by Vietnam E-commerce and Information Technology Agency
(VECITA) in 2014, online purchasing of each person a year was estimated at about 145 USD,
and B2C sales revenues reached 2.97 billion USD, accounting for 2, 12% of total retail sales.
Products that were chosen the most are furniture and electronic technology (60%), fashion and
cosmetics (60%), appliances (34%), books, stationery (31%) and some other items. In Vietnam,
most of online shoppers, after ordering, still chose cash payments (64%), the form of payment
via electronic wallet accounts for 37%, and the form of payment via bank accounts for 14%.
Figure 19: Estimated sales of B2C in Vietnam 2014
Population
of VN 2014
Population
using the
Internet
Estimated value
of online
purchases of each
person in 2014
Percentage of
Internet access
participating in
online shopping
Estimated
revenues from
B2C in 2014
90.73
million 8
39% 145 USD 58% 2.97 billion
8 According to GSO "socio-economic situation in 2014" - www.gso.gov.vn
11,8%
8,3%
13,1%
6,7%
5,1%
10,2%9%
8,3%
14,4%
12,1%
3,9%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
23
II. THE STATUS OF E-COMMERCE APPLICATION IN THE COMMUNITY
In 2014, VECITA – Ministry of Industry and Trade surveyed the status of e-commerce
application with more than 900 Internet users in the country. Most of survey questionnaires were
answered online and filled in the form directly. All the data and analysis in this section was
drawn from the result of the survey mentioned above.
1. The use of Internet
According to a survey of VECITA with more than 900 internet users in the whole country, 10%
of correspondents replied that they use Internet less than 3 hours per day. 36% used Internet 3-5
hours per day.
Figure 20: Frequency of Internet using per day
The period that people accessed Internet the most was from 8pm to 12am (53%), followed by the
period of 8am to 12am (24%), and 4pm to 8pm (13%).
Figure 21: The most crowed time for accessing Internet
Laptops and mobile phones continued to be the most popular devices to access Internet, the
proportion was 75% and 65% respectively. The number of people accessing Internet via other
devices, such as tablets, also increased by 19% from 2010 to 2014. Desktops were used to be the
most popular device in 2010, accounting for 84% of users; in 2014, only 33% of respondents
accessed Internet via this device.
10%
36%
17% 15%21%
Dưới 3 giờ Từ 3 - 5 giờ Từ 5 - 7 giờ Từ 7 - 9 giờ Trên 9 giờUnder 3 hrs
3 -5 hrs 5 - 7hrs Above 9 hrs
24%
9%13%
53%
1%
8am - 12pm 12pm - 4pm 4pm - 8pm 8pm - 12am 12am - 8am
7 – 9 hrs
24
Figure 22: The device for Internet access
90% of respondents said that their most frequent location for Internet access was at home. The
second most frequent one was workplace (48%). The public place, school, and Internet store
took the corresponding proportion as 22%, 16% and 5%.
Figure 23: Location of Internet access
Update information continued to be the major purpose of using Internet daily, up from 87% in
2013 to 93% in 2014. The majority of respondents used Internet to participate in forums, social
network (81%), to access email (73%), to watch movies, listen to music (64%), and to research
(63%). For activities such as personal purchases, most of respondents operated monthly (36%).
84%
38%27%
0%
33%
75%65%
19%
Desktop Laptop Mobile phone Other devices
(Tablet)
2010 2014
90%
48%
16%5%
22%8%
Tại nhà Tại chỗ làm Tại trường họcTại cửa hàng InternetĐiểm công cộng (nhà hàng, khách sạn…)Chỗ khácAt work At school Internet store Public places (restaurants,...)
OthersAt home
25
Figure 24: Frequency of using Internet for activities
2. The use of e-commerce in community
Results of the survey of VECITA with people shopping online in 2014 showed that 58% of
Internet users purchased online.
Figure 25: People participating in online shopping
93.5%
63.9%
64.8%
33.1%
73.8%
81.2%
16.3%
33.9%
4.8%
28.7%
26.1%
18.6%
18.7%
10.8%
20.5%
19.8%
1.2%
5.8%
7.7%
12.1%
7.0%
4.3%
36.2%
20.7%
0.5%
1.6%
1.5%
36.2%
0.6%
3.6%
26.9%
25.6%
cập nhật thông tin
Nghiên cứu, học tập
Xem phim, ảnh, nghe nhạc
Chơi game
Truy cập email
Tham gia diễn đàn, mạng xã
hội
Mua bán cá nhân
Hoạt động khác Không dùng
Háng tháng
Hàng tuần
Hàng ngày
Not useOthers
Individual purchase
Participate in forum, social network
Access email
Play games
Watch movies , photos, listen to music
Research & Study
Update information
Monthly
Weekly
Daily
58%
42%
Already Not yet
26
The type of goods which were purchased online the most, was toys and electronics technology,
accounted for 60%, increased 25% comparing with 2013. The items which were popular with
online shoppers were clothing, shoes, cosmetics (60%), household appliances (34%), books and
stationery (31%)...
Figure 26: Popular online products on e-commerce websites
The survey results also indicated that 71% of respondents purchasing online through websites
that sold goods / services, up 10% compared to 2013. The number of people using the social
network websites for online shopping purpose increased from 45% in 2013 to 53% in 2014. The
number of people that purchased items via group buying websites, fell sharply from 51% in 2013
to 35% in 2014. 25% of respondents said that they purchased via e-marketplace and 13% via
applications on mobile.
62%
35%
32%
25%
20%
20%
19%
16%
12%
11%
10%
60%
60%
34%
25%
18%
31%
23%
21%
14%
5%
5%
Clothes, shoes, cosmetics
Technology
Kitchen & home appliances
Air tickets
Food
Books, stationery
Movie ticket, concert ticket…
Tour & hotel booking
Music/ Video/ DVD/ Game
Spa & Beauty services
Professional services
(training, consultant…) 2014
2013
27
Figure 27: Online purchase methods
Cash was a major payment method in online transaction (64% of respondents), though decreased
10% comparing with 2013. Bank transfer also fell from 41% in 2013 to 14% in 2014. Instead of
that, the number of people using electronic wallet increased from 8% in 2013 to 37% in 2014.
Figure 28: Payment methods in online shopping
3. The efficiency of applying e-commerce in community
The survey's result showed that 6% of online purchasers were very satisfied. 41% were satisfied,
which increased significantly from 29% in 2013. 48% felt neutral and only 5% were dissatisfied.
61%
19%
51%
45%
6%
0%
71%
25%
35%
53%
13%
4%
Sale e-commerce
websites
E-marketplaces Group-buying
websites
Social network
websites
Mobile
Application
Other methods
2013 2014
74%
8%
41%
9% 11%
0
64%
37%
14% 11%7%
1%
Cash on
delivery
Electronic
wallet
Bank transfer Mobile/
Games cards
Payable cards Other
methods
2013 2014
28
Figure 29: Satisfaction of online purchasers
According to the survey's results, 40% of online shoppers bought less than 5 products in 2014,
29% purchased from 5 to 10 products and 17% purchased above 15 products.
Figure 30: Estimated number of products/services each individual shopping online in 2014
29% of buyers chose to purchase item with price from 1 to 3 million. Following was the price
above 5 million with 26% of people chose to buy, and the least was from 3 to 5 million (11%).
Figure 31: Estimated value of each individual online shopping in 2014
5%
29%
62%
4%6%
41%
48%
5%
Very satisfied Satisfied Neutral Dissatisfied
2013 2014
40%
29%
14%17%
Dưới 5 Từ 5 - 10 Từ 10 - 15 Trên 15Under 5 5 - 10 10 - 15 Above 15
21%
14%
29%
11%
26%
Dưới 5 trăm nghìn
đồng
Từ 5 trăm nghìn
đến 1 triệu đồng
Từ 1 triệu đến 3
triệu đồng
Từ 3 triệu đến 5
triệu đồng
Trên 5 triệu đồng500,000 -1,000,000vnd
1,000,000 -3,000,000vnd
3,000,000 -5,000,000vnd
Above 5,000,000vnd
Under
500,000vnd
29
The survey also indicated that the reputation of the seller or the website was the most important
factor with online shoppers, 740 respondents selected this factor, corresponding to the ratio of
81%. 80% of shoppers concerned about price, followed by order, payment and delivery methods
(68%), and the brand of products and services (64%).
Figure 32: The consideration factors of online shopping
According to respondents, the greatest obstacle of online shopping was the quality of products
or services worse than being advertised (81%). Next was unprofessional logistic services (51%),
price not lower than buying in traditional shops or not clear (46%), personal privacy disclosure
(42%), and unprofessional website design (29%).
Figure 33: Obstacles of online shopping
The reasons why people did not purchase online including: the difficulty in examining quality of
products (78%), not having trusty sellers (57%), not have enough information to make purchase
decisions (46%), not having credit cards or other payable cards (42%), buying in store faster and
easier (38%), complicated online order procedures (26%).
Figure 34: Reasons for people not shopping online
80%64%
81%68%
23%
Giá cả Thương hiệu của sản
phẩm/dịch vụ
Uy tín của người
bán/website bán hàng
Cách thức đặt
hàng, thanh toán và
giao nhận hàng hóa
Thiết kế của websiteOrder, payment and delivery
methods
Brands of products/ services
Website design
46%
81%
27%
42%
51%
29%
5%
Price
Quality of products or services worse than advertised
Complicated order method
Personal privacy disclosure
Unprofessional logistic service
Unprofessional website design
Others
17%
8%
42%
26%
38%
7%
57%
78%
46%
20%
Never try
Unable to use online shopping functions
Not having credit card or payable card
Complicated order procedures
Easy and fast to buy in stores
Low internet connection
Not having trusty sellers
Difficult to examine quality of priducts
Not having enough information to decide
No online buying/ selling
Price Reputation of the
seller/ website
30
However, 97% of respondents would continue to purchase items online in the future, this ratio
was significantly increased comparing with 88% in 2013.
Figure 35: Continue to purchase items online or not
97%
3%
Có KhôngYes No
31
CHAPTER III E-COMMERCE APPLICATION IN ENTERPRISES
32
I. GENERAL INFORMATION
In 2014, VECITA – Ministry of Trade and Industry sent the survey questionnaires on the e-
commerce application to 3.538 enterprises nationwide. All figures and analysis in this chapter
reflected the results of this survey.
1. Types of enterprises
Differing from 2013, the limited liability companies accounted for the highest figures (48%),
followed by the joint stock companies (34%). The private companies, companies with foreign
capital and other types of enterprises accounted for 19% of the total surveyed enterprises.
Figure 1: Types of enterprises surveyed in 2014
2. The business sector of enterprises
The three sectors having high number of enterprises participating in the survey were wholesale
and retail (23%), construction (21%) and industry (18%). In 2013, the industry sector accounted
for the highest figure (23%), the wholesale and retail took the second place (21%), followed by
construction (17%).
Figure 2: Business sectors of enterprises surveyed in 2014
3. The scale of enterprises
Similar to the previous years, the scale of enterprises participating in the survey classified into
the number of employees. The large enterprises had more than 300 employees, in contrast with
12%
48%
34%
2% 4% DN tư nhân
Công ty TNHH
Công ty cổ phần
Công ty có vốn đầu tư nước
ngoài
Private companies
Limied liabitity
Joint stock companies
Parnerships
18%
9%
4%
5%
5%
10%
2%
9%
21%
23%
8%
12%
Công nghiệp
Nông, lâm, thủy sản
Y tế, Giáo dục, đào tạo
Tài chính, Bất động sản
Năng lượng, khoáng sản
Vận tải, giao nận
Giải trí
CNTT, truyền thông
Xây dựng
Bán buôn, bán lẻ
Du lịch, ăn uống
Lĩnh vực khácOthers
Tourists, foods
Wholesale, retail
Construction
IT, Communication
Entertainment
Transportation
Energy, mineral
Finance, Real estate
Heathcare, Education, Training
Agriculture, Forestry, Fisheries
Industry
33
the small and medium enterprises (SMEs). According to the scale of enterprises, 9% of
respondents in the survey were large enterprises; the rest of respondents were SMEs (91%).
Figure 3: The scale of enterprises over years
94% 94%
89% 90% 91%
6% 6%
11% 10% 9%
2010 2011 2012 2013 2014
SME Doanh nghiệp lớnLarge enterprises
34
II. INFORMATION TECHNOLOGY AND HUMAN RESOURCES INFRASTRUCTURE
1. Hardware
a. Computer
According to the survey result in 2014, 98% of enterprises participating in the survey equipped
with private computers (PC) and laptop, 45% of them equipped with tablets.
Figure 4: The number of computers in enterprises in 2014
In conformity with the findings, each enterprise had 21 PC/ laptop and 3 tablets on average.
Figure 5: The average of computers in enterprises in 2014
b. The expense structure for IT and E-commerce
The investment rate of enterprises for IT and E-commerce did not have much difference
compared to the previous years. In 2014, the investment rates were 43% for hardware, 23% for
software and 18% for human resources and training.
98%
45%
PC và lap top Máy tính bảngTablets Tablets PC and Laptops
21
3
PC và lap top Máy tính bảngPC and Laptops Tablets
35
Figure 6: Cost structure for IT and E-commerce in enterprises over years
2. Software
According to the survey results, two groups of software were most commonly used in business
included accounting, financial software (88%) and human resources management (49%). Some
complicated software required high-level structure of enterprises as Customer Relationship
Management software (CRM), Supply Chain Management software (SCM), Enterprise Resource
Planning software (ERP), were used less commonly with 24%, 22% and 17% respectively.
Figure 7: Rate of enterprises applying software in 2014
43%
23%
18%
16%
42%
24%
17%
17%
41%
26%
18%
15%
Phần cứng
Phần mềm
Nhân sự, đào tạo
Khác
2012 2013 2014
Others
Education
Software
Hardware
49%
88%
22%
24%
17%
51%
12%
78%
76%
83%
Quản lý nhân sự
Kế toán, tài chính
SCM
CRM
ERP
Không CóNo Yes
Accounting,
financial
Human
resources
36
The e-signature was established in the form of words, letters, numerals, symbols, sounds or other
forms by electronic means, logically attached or associated with a data message and capable of
certifying the person who has signed it as well as the approval of such person to the content of
the signed data message9. According to the findings, the number of enterprises increased over
years from 23% in 2012 to 45% in 2014. The rate of large enterprises using e-signatures was
higher than the rate of SMEs (with 60% and 44% respectively).
Figure 8: The rate of enterprises using e-signature over years
Figure 9: The rate of enterprises using e-signature by scale
3. Online Monitoring System
Enterprises began to approach the automatic system and online monitoring system to check
orders and delivery items. According to the survey results, 22% of enterprises used the system on
business activities.
9 Law on E-transactions 2005
23%
31%
45%
2012 2013 2014
44%
60%
SMEs Large Enterprises
37
Figure 10: The use of online monitoring system
4. Email
Outstanding advantages such as high speed, cheap price and no geographical distance, email was
the most commonly mean for enterprises on business strategy and daily activities. According to
the survey results in 2014, the number of enterprises having more than 50% employees and using
email on daily activities increased comparing with the last year (24% in 2013 and 35% in 2014).
Figure 11: The use of email in enterprises
In general, the rate of enterprises using email for doing business with customers and suppliers
accounted for the highest figure (67% in 2012, 77% in 2013 and 75% in 2014)
22%
78%
Có KhôngYes No
25%
51%
24%25%
40%35%
Dưới 10% Từ 11 - 50 Trên 50%
Năm 2013 Năm 20142013 2014
Under 10% 11-50% Over 50%
38
Figure 12: Email usage for business purpose in enterprises
5. Staffing for e-commerce
The proportion of enterprises having IT and e-commerce specialized staffs slightly decreased
comparing with the previous year (62% in 2014 and 65% in 2013). The number of IT and E-
commerce specialized staffs of each enterprise was 3 people on average.
Figure 13: The proportion of IT and E-commerce specialized staffs over years
55%
67%
46%
52%
37%
24%
66%
77%
52%
51%
42%
28%
56%
75%
59%
46%
43%
23%
Quảng cáo, giới thiệu
Giao dịch
Hỗ trợ hợp đồng
Chăm sóc khách hàng
Giao kết hợp đồng
Mục đích khác2014
2013
2012
Others
Contracts
commitment
Customer services
Contract support
Transaction
Advistising
20% 23%
51%
65% 62%
2010 2011 2012 2013 2014
39
Figure 14: The proportion of IT and E-commerce specialized by business sectors
Regarding the difficulties on IT and E-commerce specialized staff recruitment, 27% of
respondents said yes, 73% of respondent said no.
Figure 15: The difficulty on IT and E-commerce specialized staff recruitment
70%
56%
69%
75%
65%
54%
73%
80%
52%
64%
71%
63%
Công nghiệp
Nông, lâm, thủy sản
Y tế, Giáo dục, đào tạo
Tài chính, Bất động sản
Năng lượng, khoáng sản
Vận tải, giao nận
Giải trí
CNTT, truyền thông
Xây dựng
Bán buôn, bán lẻ
Du lịch, ăn uống
KhácOthers
Tourism, Foods
Wholesale, Retail
Construction
IT, Communication
Entertainment
Transportation
Energy, mineral
Finance, Real estate
Heathcare, Education, Training
Agriculure, forestry, fishiers
Industry
27%
73%
Có KhôngYes No
40
III. THE TYPES OF TRANSACTIONS AND PAYMENT ON E-COMMENCE
1. The types of sale
a. Social networks
Regarding the findings, 24% of respondents had already participated in the social networks and
8% of respondents will participate in 2015.
Figure 16: The rate of enterprises selling on social networking
b. Enterprises’ websites
The number of website owners in 2014 was 45%. Of which, the enterprises on IT and
communication had the highest rate (69%).
Figure 17: The rate of enterprises owning websites over years
24%
68%
8%
Có Không Sẽ bán trong 2014Participating Not participate Going to participating
38%30%
42% 43% 45%
21%
11%
11% 9% 9%
2010 2011 2012 2013 2014
DN sẽ xây dựng website trong 2014
DN có website
Enterprises going to have websites
Enterprises having websites
41
Figure 18: Enterprises owning websites by business sectors
c. Mobile platform
E-commerce in mobile platform kept approaching retail sector, changing role as communication
channels to interaction channels between retailers and customers. The survey on the usage of
apps on mobile platform for trading purpose, 11% of respondents had already used apps on
mobile platform for trading.
Figure 19: The usage of apps on mobile flat forms for trading purpose
55%
44%
59%
58%
34%
41%
60%
69%
22%
40%
64%
46%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Công nghiệp
Nông, lâm, thủy sản
Y tế, Giáo dục, đào tạo
Tài chính, Bất động sản
Năng lượng, khoáng sản
Vận tải, giao nhận
Giải trí
CNTT, truyền thông
Xây dựng
Bán buôn, bán lẻ
Du lịch, ăn uống
Lĩnh vực khácOthers
Tourism, Foods
Wholesale, Retail
Construction
IT, Communication
Entertainment
Transportation
Energy, mineral
Finance, Real estate
Heathcare, Education, Training
Agriculure, forestry, fishiers
Industry
11%
81%
8%Có
Không
Sẽ sử dụng trong năm
2014
Yes
No No
Going to use in
2014
42
d. E-marketplace
The rate of enterprises participated e-marketplaces in 2014, slightly increased comparing with
the previous years.
Figure 20: The percentage of enterprises participating E-marketplaces over years
e. The efficiency of the sales channels
Regarding the efficiency of the sales channels including social networks, websites, mobile
platform and e-marketplaces, enterprises highly evaluated the effectiveness of social networking
and websites (66% and 71% of respondents gave high or moderate marks for two channels).
Figure 21: The effectiveness of sales channels
14%
9%
12% 12%
15%
2010 2011 2012 2013 2014
34% 29%43% 40%
50%48%
44% 44%
16% 23%13% 16%
Trên các mạng xã hội Trên website của
doanh nghiệp
Trên các ứng dụng di
động
Trên các sàn thương
mại điện tử
Cao
Trung bình
Thấp
High
Morderate
Low
Social networksSocial networks
Websites Mobile apps E-marketplaces
43
2. The payment method
The main payment method in enterprises was money transfer (90% over recent years). The
second common payment method was cards (20% in 2014), e-wallets (6% in 2014) and scratch
cards (3% in 2014).
Figure 22: The payment method
3. Privacy policy
Most of enterprises had the privacy policy. In 2014, 80% of enterprises adopted privacy policy
comparing with 73% of 2013.
Figure 23: The privacy policy
90%
7%19%
4%
94%
3%
39%
3%
97%
6%
20%
3%
Chuyển khoản Ví điện tử Thẻ thanh toán Thẻ cào
2012 2013 2014
63%53%
77% 73% 80%
2010 2011 2012 2013 2014
Money transfer E-wallets Cards Scratch cards
44
IV. THE STATUS OF E-COMMERCE WEBSITES OPERATION
1. The information update on e-commerce websites
52% of respondents updated information daily on their websites. Hanoi got the highest number
of enterprises which daily updated on their websites (52%).
Figure 24: Frequency of information updates on websites in 2014
Figure 25: Frequency of information updates on websites over the years
Figure 26: Frequency of information updates on E-commerce websites in 2014 by regions
2. Mobile version of websites
According to the survey results, 15% of enterprises had mobile version of their websites.
52%
32%
16%
Hàng ngày Hàng tuần Hàng thángYearly
50%
24% 19%
54%
21% 18%
52%
32%
16%
Hàng ngày Hàng tuần Hàng tháng
2012 2013 2014
52%
31%
17%
48%
36%
16%
47%
24%29%
46%
25%29%29%
49%
23%
Hàng ngày Hàng tuần Hàng tháng
Hà Nội Tp. Hồ Chí Minh Hải Phòng Đà Nẵng Cần thơ
Daily Weekly Weekly
Monthly Daily Weekly
Can Tho Da Nang Hai Phong Hanoi Ho Chi Minh
Daily Weekly
Monthly
Monthly
45
Figure 27: The rate of owning mobile version of websites
3. Website functions
In 2014, the number of websites having online orders increased comparing to the previous years
(41% in 2013 and 59% in 2014). The rate of websites having online payment in 2014 was 20%,
slightly increased 2% compared to 2013 (18%).
Figure 28: The rate of enterprises’ website functions
4. The advertising methods of e-commerce websites
Social networks with some advantages such as high users, low prices become to be effective
methods for enterprises advertise E-commerce websites (50%). The following methods were
search engines (47%) and electronic journal (35%). However, when enterprises were asked to
evaluate the advertising methods of e-commerce websites, 39% of respondents gave high scores
for search engines, followed by social networks (28%).
15%
85%
Có Không
41%
18%
59%
20%
Đặt hàng trực tuyến Thanh toán tực tuyến
2013 2014
Yes No
Online orders Online payment
46
Figure 29: The advertising methods of e-commerce websites in 2014
Figure 30: The advertising methods over years
Figure 31: The effectiveness of E-commerce websites advisement in 2014
24%
35%
15%
50%
47%
24%
10%
21%
13%
Báo giấy
Báo điện tử
Truyền hình
Mạng XH
Các công cụ TK
Tin nhắn/Email quảng cáo
Ứng dụng di động
Các phương tiện khác
Chưa quảng báNo advertising
Other methods
Mobile apps
SMS/Email
Search engines
Social networks
Television
Electronic journal
Newspapers
20%
34%
15%
39%
47%
16%
25%
26%
37%
15%
40%
43%
18%
27%
24%
50%
13%
35%
47%
15%
21%
Báo giấy
Mạng xã hội
Chưa quảng bá
Báo điện tử
Các công cụ TK
Truyền hình
Phương tiện khác2014 2013 2012
No advertising
Other methods
Mobile apps
SMS/Email
Search engines
Social networks
Television
Electronic
journal
Newspapers
30%
21%
16%
41%
50%
51%
44%
43%
20%
28%
39%
15%
Báo điện tử
Mạng XH
Công cụ TK
Tin nhắn và ứng dụng di động
Thấp
Trung bình
Cao
Low
Moderate
High
SMS and mobile apps
Search engines
Social networks
Electronic journals
47
Figure 32: The cost of enterprises’ website advertisement in 2014
52%
40%
7%
Dưới 10 triệu Từ 11 - 50 triệu Trên 50 triệuUnder 10 million VND Over 50 million VND 10 – 50 million VND
48
V. THE EFFICIENCY OF E-COMMERCE APPLICATION IN ENTERPRISES
1. Receiving and placing orders via electronic means
In 2014, the rate of enterprises receiving orders via email was double the rate of enterprises
receiving via website, with 78% and 36% respectively. Similarly, the rate of enterprises placing
orders via email had twice the rate of enterprises placing via websites (75% and 41%
respectively).
Figure 33: Receiving and placing orders in enterprises in 2014
Figure 34: Receiving orders via electronic means in enterprises over years
Figure 35: Placing orders via electronics means in enterprises over years
78%
36%
75%
41%
Email Website
Nhận đơn đặt hàng Đặt hàng
70%
29%
83%
35%
78%
36%
Email Website
2012 2013 2014
68%
33%
83%
50%
75%
41%
Email Website
2012 2013 2014
Receiving orders Placing orders
49
According to the survey results, 16% of enterprises said the value of their receiving orders via
electronic means (email, website) passing 50% the total revenue. Meanwhile, 33% of enterprises
said that the value of their receiving orders via these electronic means ranged from 21% - 50% of
their total revenue in 2014.
Figure 36: The total value of orders enterprises receiving compared the total revenue in
2014
Regarding the findings, 13% of enterprises said that the value of orders placed via electronic means
accounted for over 50% of the total expenses.
Figure 37: The value of orders enterprises placing compared to the total expenses in 2014
70% of enterprises receiving under 400 online orders in 2014. 43% of enterprises said that the
value of placing orders in 2014 was 5 million VND on average.
Figure 38: The number of online orders enterprises received in 2014
51%
33%
16%
Dưới 20% Từ 21-50% Trên 50%
55%
31%
13%
Dưới 20% Từ 21-50% Trên 50%
70%
19%
4% 7%
Dưới 400 Từ 400 - 1000 Từ 1000 - 2000 Trên 2000
Under 20% 10 – 50% Over 50%
Under 20% Under 10 - 50% Over 50%
Under 400 400-1000 1000-2000 Over 2000
50
Figure 39: The average value of order enterprises receiving in 2014
2. The revenue of e-commerce enterprises in 2014
44% of surveyed enterprises having revenue of goods, services via e-commerce channels in 2014
increased, comparing with 2013, 50% of respondents said this revenue experienced almost no
change. Only 9% of respondents had decreased revenue.
Figure 40: The revenue of goods, services via e-commerce channel
23%
13%
21%
43%
Dưới 1 triệu Từ 1 - 2 triệu Từ 2 - 5 triệu Trên 5 triệu
42%
9%
50%
Tăng Giảm Hầu như không đổi
Under 1 million VND 1-2 million VND 2-5 million VND Over 5 million VND
Increase Decrease Almost no change
51
VI. THE USE OF ONLINE PUBLIC SERVIC
1. The status of online public services usage
With more than 4.000 online public services provided by management agencies, enterprises had
opportunities to approach the information on the websites of management agencies. According to
the survey results in 2014, 43% of respondents frequently searched information on these
websites.
Figure 41: Frequency of searching information on the websites of management agencies
57% of enterprises had already used online public services related to registration, licensing,
notification…provided on local websites.
Figure 42: The use of online public services in 2014
2. The evaluation of online public services usage
Regarding the findings, 39% of enterprises said that the online public services on local websites
were very useful. 55% of enterprises evaluated them as useful and 6% of enterprises thought they
were not useful.
Figure 43: The evaluation of online public services on local websites
42%53%
5%
Thường xuyên Thỉnh thoảng Chưa bao giờ
57%43%
Đã sử dụng Chưa sử dụng
39%55%
6%
Rất có ích Tương đối có ích Không có ích
Frequently Occasionally Never
Already use Not yet
Very useful Useful Not useful
52
CHAPTER IV THE OPERATION STATUS OF E-COMMERCE SERVICE WEBSITES
53
I. GENERAL INFORMATION
In 2014, VECITA conducted surveys on 247 traders and organizations owning e-commerce
service websites.
1. Model and scope of operations
The e-commerce service websites in the survey included three types: 88% of e-marketplaces;
16% of online sale promotion websites and 2% of online auction websites.
Figure 79: The models of e-commerce websites in the survey
The surveyed websites were mostly located in two big cities named Ho Chi Minh City and Hanoi
with the proportion of 38% and 37%. The rest of 25% websites were provided by other regions.
Figure 80: The surveyed e-commerce websites in different regions
According to the survey, 72% of websites had business over the country. The rest of 12%
websites operated in provinces and cities where traders and organizations had place of business
or representative office placed in.
Figure 81: Business range
88%
16%2%
E-marketplace Online sale promotion
website
Online auction website
37%
38%
25% Hanoi
Ho Chi Minh City
Other regions
12%2%
72%
11%
Provinces/Cities Neighboring
provinces
Nationwide Globe
54
2. Investment capital
85% of e-commerce service websites in the survey had their own budgets. Websites from foreign
investment accounted for 10%, the remained websites were invested from the state budget or
others with small proportions of 5% and 2% respectively.
Figure 82: Investment capital for websites
3. Main income of the websites
Advertisement fees were the main income source of e-commerce service websites (70%). 56%
websites charged fee per order. Other fees such as message fee, membership fee, consult fee and
added service fee accounted for small proportions from 13-27%.
Figure 83: Main income of the websites
4. The supporting utilities and tools
81% of surveyed websites provided filter tools and search engines on websites. 76% integrated
Yahoo messenger and Skype to give online support for customers. The integration of social
networking and short message services (SMS) was recently concerned by enterprises with the
rate of use of 53% and 50%, respectively.
85%
5% 10%2%
Enterprises State budget Foreign investment Others
13%
25%
27%
27%
56%
70%
Message
Membership fee
Consult
Added service
% charged fees per order
Advertisement
Fee per order
Membership
55
Figure 84: The supporting utilities and tools on websites
5. Products and services providing on e-commerce websites
Five categories got the most transactions on e-commerce service websites including: fashion
(44%); computers and internet (43%); clothes, shoes, cosmetics (43%); telephone (41%); home
appliances (25%).
Figure 85: Top 5 categories having the most purchase on websites
6. Human resources
The percentage of enterprises that had less than 10 employees was 53% of total surveyed
enterprises. Enterprises had from 10-20 employees and from 20-100 employees took the
proportion of 27% and 16% respectively. And enterprises had more than 100 employees
accounting for 4%.
Figure 86: The percentage of employees in the enterprises
81%
76%
53%
50%
44%
44%
42%
23%
17%
9%
2%
Filter/search engine
Online support/chat/skype…
Integrated social network
Integrated SMS
Shopping cart
Order management
Product evaluation
Transport, delivery administration
Product comparison
Other utilities
Seller evaluation
44% 43% 43% 41%
25%
Fashion Computer
and Internet
Clothing, shoes
and cosmetic
Telephone Refrigerators,
home appliances
53%27%
16%
4%
< 10 employees
10-20 employees
20-100 employees
> 100 employees
56
Top 5 websites had the greatest number of staffs in 2014: cungmua.com, enbac.com, hotdeal.vn,
vatgia.vn and lazada.vn. The number of staffs was from 240 to 563 people.
Figure 87: Top 5 websites having the greatest number of staffs
Regarding the personnel structure, e-commerce service websites had more staffs working on
sales than staffs working on other activities.
Figure 88: The average number of staffs by structure
7. Payment infrastructure
30% enterprises that owning e-marketplaces, had supported and integrated online payment
functions. 27% accepted card payment such as Visa, Master Card, 25% accepted intermediate
payment and 10% accepted SMS. 45% websites supported delivery service and cash on delivery
(COD).
The method of making payment at store was popular and accounted for 75%. Meanwhile, the
payment method by bank transfer was still used at the rate of 77%.
563
349
471
240182
lazada.vn enbac.com Vatgia.vn cungmua.com mca.mobivi.vn
8
4 4 43
1
Sales staffs IT staffs Support staffs Managers Shipping staffs Legal staffs
57
Figure 89: The payment methods on website
Online payment methods were chosen to use: Ngan Luong (34%), Bao Kim (24%), One Pay
(18%) and Payoo (18%). The intermediate payment portals accounted for 18%, including:
Paypal, Smartlink, Fibo, VNPT ePay, Banknet…
Figure 90: The chosen payment methods
34%
24%
18%
6%
18% Ngan luong
Bao Kim
Onepay
Payoo
Others
58
II. THE OPERATION STATUS OF E-COMMERCE WEBSITESIN DIFFERENT TYPES
1. E-marketplace
a. The sales operation and e-commerce service providing activities in e-marketplaces
Total transaction value in 2014 of 85 surveyed e-marketplaces reached 2,500 billion. The two
leading e-marketplaces were lazada.vn (21%) and sendo.vn (10%).
Figure 44: The share of sales in e-marketplaces
The survey results also showed that, the 3 leading e-marketplaces on revenue from e-commerce
service providing activities were: lazada.vn (26%), ebay.vn (19%), and vatgia.vn (18%).
Figure 45: The share of revenue from e-commerce service providing activities in e-
marketplaces
21%
10% 8%5% 4% 3% 2% 1%
46%
26%
19%18%
6%
1%2% 2%
1% 1% 1%
59
Figure 46: The top websites by revenue
1. Lazada.vn
Lazada.vn was established in the mid 2013 with the investment from Rocket Internet Corporation.
This e-marketplace was quickly trusted as a leading brand name. Compared with 2013, lazada.vn
developed in both transaction volume and transaction value and doubled the growth rate of
revenue.
The growth rate of leading e-marketplace compared with 2013
Enterprises Website Transaction
volume
Total
transaction
value
Total
revenue
Recess Market Co.,Ltd lazada.vn +133% +160% +200%
Sendo Jsc sendo.vn +100% +45% +45%
2. Sendo.vn
With 5,300 suppliers of goods and services, hundred thousands of diverse products were available
in sendo.vn, this e-marketplace had achieved a 45% growth in revenue, 100% successful
transaction volume and a 45% growth in total transaction value. Sendo.vn had advantages of new
customers after buying the famous website 123mua.vn from VNG. Recently, Sendo JSC
announced an investment strategy in cooperation with three leading Japanese conglomerates on
internet: SBI Holdings, Econtext ASIA, BEENOS10
.
b. Investment and technology innovation
The investment in technology of e-marketplaces in 2014 ranged from 10 to 100 million VND
(54% of websites). Most of these websites were in the form of classified ad, forums, so their
scale of investment was relatively small. The e-marketplaces which had the investment from 100
million to 1 billion VND, accounted for 23%. The number of e-marketplaces with large-scale
investment (over 1 billion VND) accounted for 8%, rising slightly compared to 2013.
10
Information cited from website www.sendo.vn, dated 5/12/2014
60
Figure 94: Investment on technology innovation
The highest level of investment on technology innovation was seen in chodientu.vn with the
investment accounting for 25% of the total revenue. Other websites such as tiki.vn, ebay.vn,
sendo.vn , vatgia.vn were in the top 10 websites invested the most in technology;
If comparing with total revenue, this investment only accounted for a small proportion from 1-
5%.
Figure 95: The proportion of investment with total revenue
2. Online sale promotion websites
In 2014, 16% of websites participated in the survey were online sale promotion websites.
a. Revenue
Total revenue of online sale promotion websites in 2014 was estimated to be over 960 billion
VND, up 18% comparing with 2013.
Figure 96: Total revenue of online promotion websites (billion VND)
<10 million VND 10-100 million VND 100 million VND - 1
billion VND
>1 billion VND
2013 2014
25%
4% 5%1%
11%
37%
9%
38%
2%
16%
810960
2013 2014
61
The leading website was hotdeal.vn, accounting for 60% of market share. The following was
muachung.vn with 27% of market share. The other websites such as sieumua.com, ivivu.com and
lingo.vn were in the top 5 online promotion websites that got small revenue comparing to total
revenue of these websites (2 – 4%).
Figure 97: The market share of revenue from online promotion websites
b. Promotion value
The saving amount of 40 online promotion websites for consumers in 2014 was estimated at 276
billion VND, up 53% compared to 2013. In particular, hotdeal.vn was leading the saving rate
(35% of the whole market). Muachung.vn followed at the rate of 23%. The other websites such
as cungmua.com, nhommua.com and sieumua.com took the relatively small proportion (4%).
Figure 98: The amount of savings (billion VND)
Figure 99: Top 5 online promotion websites having greatest amount of savings
237
276
2013 2014
35%
23%
4% 4% 4%
Hotdeal.vn muachung.vn cungmua.com nhommua.com sieumua.com
62
c. The development of top revenue websites
In 2014, muachung.vn experienced a slight increase in revenue (+4%). Lingo.vn also strongly
developed in the terms of revenue, the number of suppliers for websites and the amount of
saving for consumers with the growth rate of 14 % and 38 %. The online reservation system for
hotel in Ivivu.com was growing slowly (+1%).
Though sieumua.com got the third highest of revenue but its revenue declined comparing with
2013. For example, 11% of orders and 13% of savings reduced and led to a significant decrease
in revenue (-20%).
Figure 100: The development of top 5 revenue online promotion websites in comparison
with 2013
No. Website Revenue Suppliers Orders Saving
amount
1 hotdeal.vn +29% +9% +8% +30%
2 muachung.vn +4% +27% +6% -3%
3 sieumua.com -20% - -11% -13%
4 ivivu.com +1% -9% +20% +50%
5 lingo.vn +14% +50% - +38%
Figure 47: Online Shopping Day in 2014(11
)
A. ACCESS STATISTICS
Online shopping day was implemented under the direction of the Prime Minister's Decision No.
689/QD - TTg approving National E-commerce Development Program in the period of 2014 -
2020. The program took place on the first Friday of December, dated 05/12/2014. On that day,
the incentive was applied from 0h00 to 24h00, to all transactions on websites within Vietnam
that joining the program. Promotion was only applied for customers ordering online.
Online shopping day attracted over 1,000 participating enterprises – 3,226 promotional products.
Statistics was collected via the official website of the program (www.onlinefriday.vn), and was
compiled by the organizers as follows:
- Total number of access on the information system in NMSTT: 1.993.000 visit
11
Statistics from Online Shopping Day in 2014 at Appendix 1
63
- Total views: 10.684.904 page views
- Views/visit rate: 7.09 views/visit
- The number of participants in the program awards: 13.604 unique users
- Total number of clients email subscribed to regular promotions: 11,301 email
B. TRANSACTION STATISTICS
Online shopping day in 2014 was chosen by many enterprises as the beginning of the year-end
sale. During the day 05/12/2014, the aggregated data from these enterprises were recorded as:
- The total value of goods traded in the day estimated 154 billion VND, an increase
of 2.48 times the average day in the year.
The proportion of orders compared to the average of the business day
3. Online auction websites
From 2010, Vietnam Internet users were able to access many online auction models. In that time,
there were new rules on auctions as: ceiling price, price steps, time requirements, type of
auctions (forward auction, reverse auctions, etc…). With the rapid development of e-commerce,
many websites changed their operation models due to the lack of efficiency. In 2010, Vietnam
had 100 online auction websites, with 10 professional ones. However, the survey data in 2014
showed that only a few website still maintained this operation model as ebay.vn, kiemthem.vn,
sohot.vn… Moreover, some other websites were providing auction service as an added activity.
Figure 102: Business performance of online auction websites
No. Website
The number
of participants in
the auction
The number
of successful
auctions
Total value of
successful bid
(million VND)
1 ebay.vn 30,000 15,000 30,000
2 kiemthem.vn 80,000 7,000 14,000
3 sohot.vn 14,000 4,000 400
3,25 2,453,48
< 100 millionVND 100 million - 500
million VND
> 500 million VND
64
Figure 103: Introduction to some online auction websites
1. eBay.vn
In 2009, the online auction website eBay.vn was established. After 5 years, the number of
participants and transactions is increasing. In 2014, eBay.vn held for approximately 30,000
members in the auction, successful auctions 15,000 worth successful bid to reach 30 billion.
2. Kiemthem.vn
Kiemthem.vn is the auction system of working, services with specified time. In 2014, the website
had 80,000 members in 7,000 jobs auction, worth approximately 14 billion.
3. sohot.vn
From starting at a website classifieds, sohot.vn developed features to become the online auction
website. In 2014, the website had attracted 14,000 members in the auction, successful bid of
4,000 auctions totaling up to 400 million.
65
III. SETTLEMENT OF DISPUTES AND COMPLAINTS ON THE E-COMMERCE
WEBSITES
1. Policies and settlement for disputes
In order to support consumers purchasing on e-commerce service websites, these websites have
announced their dispute settlements. 85% of websites had policies and dispute settlement to
resolve the issues as sellers and buyers reach an agreement with each other. 15% of websites had
supporting policies for cases that parties decided to bring disputes to law authorities. Supporting
policies included the supplement of information and evidences that relating to transactions on
website.
Figure 104: Settlement of disputes on e-commerce websites
2. Control mechanism and content management on the website
According to the survey, most of the websites had specific rules for posting product information
on the website (79%). Most of these regulations related to the posting method, formality, the list
of goods and services banned on the website, dealing with posts that in contravention of
regulations, etc…
59% websites performed their own control mechanisms, mainly through the review and periodic
inspections of the site administrators or users’ complaint on improper news. 31% of websites
performed automatic control mechanism by filter systems, the website will detect improper posts
to website administrators.
Figure 105: Control mechanism and content management on the websites
3. Mechanisms on receiving complaints
In 2014, the e-commerce service websites had received more than 6,600 reports and complaints
about the service. The more transactions websites had, the more complaints they received from
customers.
85%
15% Self agreement
Law enforcement
agencies
31%59%
79%
29%
Automatic control Particular control Posting information regulation Others
66
Most complaints concerned about the delivery time (60%). 15% of sites were complained about
supporting services in the e-marketplace and 13% were about the quality and design of goods.
Only 6% websites were complained about the payment services.
Figure 106: Complaints on the e-commerce website
13%
3%
6%
60%
11%
15%
8%
Quality and design of goods
Delivery, shipment
Payment
Delivery time
Enterprises supplying goods, services
Online support
Other complaints
67
CHAPTER V THE STATUS OF E-COMMERCE SALE WEBSITES
68
I. GENERAL OVERVIEW
In 2014, VECITA surveyed 1.350 e-commerce sale websites. Of which, 765 websites or
approximately 57% provided online stores with tools like shopping carts, which allowed
customers to make online orders, to use online payment functions as payment gateway,
electronic wallet, online transfer, etc. 585 websites (43%) of those surveyed were built to provide
information about the products or services, or belonged to distributors or manufacturers that not
trading products or services directly.
Figure 107: Business model of surveyed e-commerce sale websites
1. Websites by geography
According to the survey, websites were mostly located in the two big cities named Hanoi and
Ho Chi Minh city. 46% of websites were set in Hanoi, 44% of websites in Ho Chi Minh city,
while 10% were in other cities/provinces.
Figure 108: Websites by geography
43%
57%
Information Delivery Sites Transactional Sites
46%
44%
10%
Hanoi
Ho Chi Minh city
Other
69
2. Business range
About 69% of websites provided products and services nation-wide, while 14% of websites
operated within the cities/provinces where they located. 13% of websites expanded their
businesses to international markets.
Figure 109: Business location of e-commerce sale websites
3. Business sectors
The survey showed changes in size and number of categories of products/services provided on
websites. Apart from the traditional online sectors such as food, beverage, books and stationery,
etc., new sectors including auto, bike, and construction industry were also developing.
Figure 110: Business line
4. Human Resource structure
According to the survey, 17% staffs of e-commerce sale websites worked for IT departments and
most of Information delivery sites had to outsource IT staffs. In general, e-commerce sale
websites had more sales staffs than technical support staffs. Sales support staffs including sales
14%5%
69%
13%
Within
provinces, cities
Neighboring
provinces
Nationwide Globe
4%
17%
2%
4%
17%
10%
1%
2%
6%
3%
25%
13%
19%
7%
10%
14%
28%
19%
Real estate
Industry, construction
Air, train, bus ticket agent
Domain registration, hosting
Other
Tourism, accommodation
Online payment service
Card service
Website design
Job service
Electronics, household
Flowers, gifts, toys
Computer, telephone, office equipments
Auto, motor vehicles, bicycle
Books, stationery
Interior, exterior decoration
Fashion, comestic, health-care
Food, beverage
70
staffs, legal staffs, online support staffs, etc., represented for 51% of employees. However, only
16% websites had specialized legal staffs.
Figure 111: Human resource structure
In order to support customers promptly, several websites adopted supporting tools such as
Skype, Yahoo Messenger or online chatting software, etc. Two categories, that had the largest
number of supporting staffs, were computers, phones and office equipments, and fashion,
cosmetic and health-care products (making up about 22% of employees).
Figure 112: Human resource structure by business lines
82% of surveyed websites had staffs to support customers via telephone, Yahoo Messenger,
Skype or email. Shipping staffs accounted for 16% of total staffs. 42% of websites recruited
staffs for shipping purpose.
5. Investment Source
In 1,350 surveyed websites, over 97% were fully funded by domestic enterprises, while only
0.5% websites received funds from foreign enterprises.
18%
16% 16% 16%
17% 17%
Sale staffs IT staffs Legal staffs Shipping staffs
Support staffs
Managers
14%
23%17%
21%
9%
23%19%
22%
14%
23%19%
22%20%23%
19%22%20%
24%20% 22%22% 24%
20%23%
Tourism, accommodation Computer, telephone, office equipments
Electronics, household Fashion, comestic, health-care
Legal staffs Shipping staffs IT staffs Managers Support staffs Sales staffs
71
Figure 113: Websites by investment source
As for enterprises owning information delivery websites, their websites only provided
information on company’s capacity and the main product. Therefore, their technical
infrastructure and human resources were not invested as much as online store websites did.
Those websites cost a small and medium enterprise an average of 5 billion VND for website
design and domain maintenance, and a large enterprise an average of 10 - 30 billion VND. The
responsibility of website admin was often carried out by staffs, who holding multiple positions in
the enterprise, but basically were not IT staffs.
6. Products and services on e-commerce sale websites
The survey’s results indicated the change in scale, number and categories of products and
services provided on e-commerce sale websites. Fashion, cosmetic and health-care ranked the
first with 28%, followed by household and electronic products at 25%. The high-end technology
products such as computer, telephone and office equipments were the third popular products
targeted by online consumers (19%).
Figure 114: Top 5 products most purchased on websites
97.3%
0.2%
0.5%
2.0%
Funded by enterprise
Funded by Government
Funded by foreign …
Other
28%
25%
19%
19%
17%
Fashion, comestic, health-care
Electronics, household
Computer, telephone, office …
Food, beverage
Industry, construction
72
II. THE STATUS OF E-COMMERCE SALE WEBSITES
1. Supporting tools
a. Supporting tools on e-commerce sale websites
82% of e-commerce sale websites which allowing customers to order online, provided online
supporting tools for customers to raise questions via live chat, email or hotline. 57% of these
websites have shopping carts for customers shopping easier. However, several websites required
users to login account before ordering. 52% of e-commerce sale websites adopted the
management utility for orders, 54% adopted the utility to confirm orders automatically via email
and SMS. 53% of websites that provided search tools, were able to manage and confirm orders
via email. Only 14% of websites helped customers compare products, while 33% allowed them
to rate products.
Figure 115: Tools and utilities provided on online stores
b. Membership registration
Most of websites did not require customers register before ordering products/ services (76%).
Instead, those websites asked customers to fill order forms or provided phone number.
Figure 116: The proportion of websites requiring user accounts before placing online order
19%
53%
14%
49%
20%
82%
52%
54%
33%
57%
Other
Filter/Search tool
Comparison tool
Social media integration
Delivery management
Live support (chat, email, hotline)
Order management
Order confirmation via email, SMS
Product rating
Shopping cart
24%
76%
Require
Not require
73
c. Integration of social networks
Almost 50% of surveyed websites enabled customers to login social network accounts to place
an order, instead of creating a new account on the site. Accordingly, websites automatically
received customer’s information without requiring them to provide any information.
Figure 117: The proportion of websites with social network integration
d. Adoption of online payment function
In 1,350 surveyed enterprises owning e-commerce sale websites, 56% of these websites provided
delivery service and COD payment method. In fact, data showed that the transaction by cash was
most preferred in online purchases. In-store payment was the most popular payment method and
was applied in 90% of surveyed websites. At the same time, cash transfer was used by 83% of
surveyed websites.
Figure 118: Payment methods applied on e-commerce sale websites
Among online payment providers, Ngan Luong took the lead with 33% of websites applied,
followed by Bao Kim with 25%. Onepay was used by 15%, Banknet and Smartlink both by 4%,
and other providers by 19%.
49%
51%
Integrated
Not integrated
89%
27%
83%
3%
16%
22%
56%
In-store
Online payment
Bank transfer
SMS
Online payment providers
Visa, Master cards
COD
74
Figure 119: Top 5 of online payment providers
2. Website policies and support services
a. Delivery policy
Delivery service played an important role in online business due to its relation to cost and
services provided by enterprises. Most of SMEs outsourced delivery service by hiring third
parties to ship products and collect money (COD). 42% of enterprises shipped products directly
to consumers. 49% of enterprises used both methods.
Figure 120: Shipping methods
b. Dispute Settlement
Only 33% of surveyed websites published dispute settlement policy on their pages.
Figure 121: Websites having dispute settlement
33%
25%
15%
4%
4%
19%Ngan Luong
Bao Kim
Onepay
Smartlink
Banknet
Other
42%
9%
49%
Shipping on their own
Outsource
Both
33%
67%
Having
Not having
75
c. Advertising methods
According to the survey’s results, Facebook fanpage was ranked first in online advertising
methods (making up 48%), closely followed by Google’s SEO (47%). Advertising via blog and
forum which offered the advantages of low cost, were also optimized by 41% of enterprises.
Total spending on advertising in 2014 was 1.5 times as much as that in 2013. However, online
advertising was still inadequate with the potential of 33 billion Vietnamese Internet users.
Figure 122: Share of online advertising methods
Figure 123: Top 5 enterprises with large spending on online advertising
Company Domain
FPT Digital Retail Joint Stock Company Fptshop.com.vn
Hansaeyes24 Vina Company Limited Yes24.vn
Nguyen Kim Trading Joint Stock Company Nguyenkim.com
HC Trading Company Limited Hc.com.vn
Knic Company Limited Shoptretho.com.vn
17%
41%
2%
9%
18%
48%
25%
47%
35%
29%
31%
Other
Blog, forum
Kiosk
Youtube
Facebook fanpage
Facebook ads
Logo on other's websites
Online newspaper
76
Figure 124: Offline advertising methods
In offline advertising methods, mobile advertising was applied the most by enterprises (44%).
The category of service that had the highest level of applying mobile advertising was beauty,
tourism and banking account providers. Advertising via agencies and distribution channels was
the second leading method in terms of usage by enterprises (32%). Main customers of this offline
advertising method were websites that selling functional food, which aimed to optimize the
advantage of agencies and distribution channels to be more affordable with customers as most of
the functional food was imported.
22%
2%
6%
32%
44%
8%
14%
11%
13%
29%
21%
Other
Via radio
Via TV
Affliates
Via telephone
Organizing trainings
Building of marketing staffs
Event sponsorship
Conferent, event hosting
Flyer
Via newspapers, magazines
77
III. EXPENSE AND REVENUE OF E-COMMERCE SALE WEBSITE
1. Expense
According to the survey result, in 2014, operating expense for e-commerce sale website
represented 1.32% of total revenue while advertising cost accounted for 0.96%. Besides, expense
for technology upgrade witnessed significant change, down to 0.36% of total revenue in 2014
from 0.44% in 2013. The decrease was explained by the cutting down on operating expense by
enterprises for after 2 years of operation, the procedure and management of websites had
gradually been stable.
Figure 125: Ratio of cost to revenue for e-commerce sale websites
2. Revenue
Based on the survey results, only 875 out of 1,350 websites (64.8%) earned revenue, with the
total of 8.084 billion VND (or equivalent to 4 million US dollars). According to enterprises that
owning these websites, this amount in 2014 increased 1.7 times as much as that in 2013.
Figure 126: Total revenue of surveyed e-commerce sale websites (billion VND)
The largest revenue came from group of websites which sold fashion, cosmetic and health-care
products and services, accounting for 23% of the total revenue in 2013 and reaching 26% in
2014. Group of websites selling computer, mobile and office equipment witnessed a dramatic
rise in revenue in 2014 which is 1.8 times as much as in 2013. In this group, the biggest
enterprises in terms of revenue included thegioidiVND.com, nguyenkim.com and
fptshop.com.vn. As for electronic and household products, their revenue decreased by 0.1% in
2014. Websites providing tourism service came next in the ranking with a decline of 0.5% to
2.7% in 2014.
2.75%
0.44%
1.16%1.32%
0.36%0.96%
Operating cost Technology upgrading Advertising cost
2013 2014
4,672
8,084
2013 2014
78
Figure 127: Products/Services with largest revenue in total revenue
In 2014, consumers were also affected by financial crisis. Products were most purchased
including electronics and household items. Products with high value were less acquired.
Consumers only visited websites in order to compare prices of same products selling by different
stores.
Figure 128: Most purchased products and services
ccording to the survey, the popular price for products purchased on e-commerce websites was
less than 200.000 VND, accounting for 36% of surveyed websites.
Figure 129: Price range of purchased items
9.2%
23.0%
3.3%
12.3%
9.1%
26.3%
2.7%
22.7%
Electronics, household
Fashion, comestic, health-care
Tourism, Accommodation
Computer, telephone, office …
2014 2013
3%
4%
4%
4%
6%
8%
9%
10%
12%
13%
Domain registration, hosting
Flowers, gifts, toys
Books, stationery
Website design
Food, beverage
Interior, exterior decoration
Computer, telephone, office equipments
Tourism, accommodation
Fashion, comestic, health-care
Electronics, household
36%
23%
20%
12%
8%
<200.000
200.000 - 500.000
500.000-200.0000
2.000.000-5.000.000
>5.000.000
79
Out of 23% of surveyed websites whose prices ranged from 200,000 to 500,000 VND, had
fashion, domestic and health-care as the most purchased products. Nevertheless, popular price
paid for electronic and technology products were higher, ranging from 500,000 to 2,000,000
VND.
Figure 130: The main customer resources of websites
Based on the survey, 82% of websites contacted with their customers via their pages, 48% via
phones and 40% via social media. The statistics indicated that getting access to enterprise’s
websites is the best among various ways to purchase a product.
Figure 131: Main sources of websites’ revenue
Revenue for e-commerce websites came mainly from the sale of products and services provided
on the websites, accounting for 84% of total revenue, while revenue occurring from advertising
and membership made up small amount which were 5% and 1%, respectively.
82%
26%
48%
40%
25%
Via website
Via email
Via telephone
Via social media
Other
84%
5% 1%15%
80
Figure 132: Successful application of e-commerce in enterprise’s business 12
1. Dacsankiengiang.vn
The business establishment Thanh Hang was established in August 2013 in Kien Giang. In
August 2014, Thanh Hang built website at www.dacsankiengiang.vn through solutions provided
at www.eKip.vn with objectives:
“To collect and introduce special products from Kien Giang”.
Website www.dacsankiengiang.vn provides a variety of products including:
- Special products from Kien Giang: Sang Loi white pepper, Khai Hoan fish sauce, Bay Gao
myrtle wine, Hong Tieu Salt, Can ham, KIFOCAN Oil soaked tuna, KIFOCAN Sardine in
tomato sauce; Cajeput peel paintings, etc…
- Fresh and raw seafoods; Dried jelly fish, dried shrimps; Processed food; Handmade products,
etc.
After 5 months of operation, the website attracted over 56,000 pageviews and received a lot of
orders via websites and phones. Popular products purchased were fresh and raw seafood, fish
sauce, dried food, pepper, myrtle wine, etc. Apart from infrequent retailed orders, frequent orders
in wholesale and of high value ranging from 2 billion to 10 billion VND were placed by
customers from provinces like Can Tho, Vinh Long, HCM City, Binh Phuoc, etc. Thanh Hang’s
average revenue reached 100 million VND per month after the application of e-commerce.
2. Cakhotranluan.com – amthuccotruyen.com
The business establishment Ca Kho Tran Luan operated as a household business since 1998 in
Ha Nam. In 2009, Ca Kho Tran Luan started introducing their products on website at
cakhotranluan.com.
Main business lines of Ca Kho Tran Luan include the process and distribution of main product:
Stew fish originated from Vu Dai village. The product was known in both domestic and
international market as Vu Dai village’s stew fish. Since 2009, Ca Kho Tran Luan was one of the
first business establishments introducing rural special food to market. Applied Internet
successfully in the business operation, Ca Kho Tran Luan boosted production and business
activities of Vu Dai villagers, and obtained the following achievements:
- 5 consecutive years in top of provider of Vu Dai stew fish with an annual growth rate of 150%.
- In 2013, Ca Kho Tran Luan provided to the market over 10,000 clay pots, with the value of
each pot ranging from 400,000 to 1,200,000 VND (for 1 to 5 kg).
12
Data provided by enterprises
81
CHAPTER VI E-COMMERCE IN MOBILE PLATFORM
82
I. E-COMMERCE ON MOBILE PLATFORM
With a population of 90.73 million people in 2014, Vietnam was the 14th most populous country
in the world, the 8th in Asia and 3rd in Southeast Asia. Vietnam's population increased by 1.08%
compared with 2013, including urban population of 30 million, accounting for 33%; rural
population of 61 million, accounting for 67%. In particular, the percentage of the population that
used Internet was 39%, the number of mobile subscribers were more than 130 million (1
Vietnamese on 1.45 SIM card phone in average), 36% of the population used internet via mobile
platforms.
Figure 133: The figure on the use of Internet through mobile in Vietnam
In January 2015, WeAreSocial announced survey results on the proportion of people purchasing
online via mobile devices by 27 countries. Accordingly, the dominant demographic structure of
the population with 40% aged from 10 to 24, put Vietnam in the group of countries having high
rate of people purchasing online via mobile devices. This rate could up to 15%; the same as
Australia, Brazil, Saudi Arabia, and surpass countries that technologies developed such as Japan,
France ...
Figure 134: Percentage of people purchases online via mobile devices (%)
36% population
20% smartphone
39% population
33% urban
The percentage of population
accessing Internet via mobile
Mobile subcribers
(134 million)
Access Internet
(36 million)
Vietnam population
(90,73 million)
3727 27 23 23 20 19 19 18 18 17 17 16 15 15 15 15 14 14 13 12 11 11 11 9 8 6
Kore
a
Chin
a
UA
E
Sin
gapore
Hongkong
Germ
any
Turk
ey
Mala
ysia
UK
US
Spain
Arg
en
tin
a
Italy
Vie
tnam
Ara
b …
Austr
alia
Bra
zil
Mexic
o
Pola
nd
Fra
nce
South
…
Phili
ppin
es
Thaila
nds
Indonesia
India
Russia
Japan
83
1. Model B2C
In the context of the economy with many difficulties, e-commerce with revolution in mobile
technology, that leading by smart-phones and software applications, were contributing to the
retail operations, and creating a basic change in interactive relationship between consumers,
retailers and trademark.
When consumers used mobile devices with software applications on devices to search, access,
compare and buy goods, mobile solutions are becoming an important sales channel for retail
sector. Statistics from the leading retailers in Vietnam showed that retailers were trying to adapt
to the tendency of e-commerce on mobile platforms. The retail businesses not only introduced
actively their products, brands and promotions on mobile commerce platform, but also invested
on designing mobile applications for their own brands.
Figure 135: Tiki JSC with e-commerce on mobile platforms
Tiki Joint Stock Company, a Vietnam enterprise working in the field of e-commerce,
announced the investment structure on new technology platform and investment rates on
mobile platforms in 2014 as follows:
Tiki identified that the investment in mobile platform for B2C transactions was one strategic
investment direction in future. The percentage of investment in mobile platform accounted for
68% of the investment structure for new technology platform researching activities. In the
investment in mobile platforms, investment structure remained focused primarily on
communication activities (73%), investment in technology accounts for 27%.
According to a survey of VECITA in 2014 with more than 900 consumers using Internet,
Vietnamese consumers accessed Internet not only via laptop, but also via mobile devices.
Specifically, although in 2010, the number of people accessing Internet via mobile phones was at
68%
32%
Investment structure on new
technology platform
Investment on
mobile platform
Invesment on
other platforms 73%
27%
Investment structure on
mobile platform
Investment on media
Investment on
technology
84
only 27%, after 4 years, the rate has increased by 38% and reached 65% in 2014; besides, the use
of mobile devices to access the Internet also experienced a sharp rise, due to the appearing of
new technology mobile devices such as tablet, etc... This ratio increased by 19% in 2014,
comparing with 0% in 2010.
Figure 136: Devices for Internet access
The statistic also showed the method of online shopping via mobile applications was doubled
from 6% in 2013 to 13% in 2014.
Figure 137: Methods of online shopping
The survey results revealed that, e-commerce on mobile platform was gradually growing in the
retail sector as a transition from a communication channel to an interactive channel between
retailers and consumers. The acceptance level of consumers was very positive, so the problem
that retailers must solve was how to ensuring technology and their core business services.
2. Model C2C
Another e-commerce model was also popular in Vietnam is e-market place. They were having
movements to direct investment in mobile platforms. The applications for Model C2C could be
divided into two main groups, including:
Group 1 including enterprises developing mobile solutions based on consumer community that
already available on the web platform; representatives of this group were enterprises that had
84%
38%27%
0%
33%
75%65%
19%
Desktop Laptop Mobile phone Other devices (Tablet)
2010
2014
61%
19%
51%45%
6%0%
71%
25%
35%
53%
13%4%
Sale e-commerce
website
E-marketplace Group-buying
website
Social network Mobile
application
Other methods
2013
2014
85
prestigious website, having large number of users so when they expanded to mobile applications
market, they would have the advantage of users. The application of Group 1 was also designed to
take advantage of the basic features of mobile devices such as calling, messages...
Figure 138: Application of Rongbay in IOS
Group 2 including enterprises that had no customer yet so they had to take advantage of the rapid
spread of mobile platforms to promote their applications and build the community of buyer and
seller; representatives of this group were enterprises that were trying to solve the problem of
technology to create a good application platform, then focus on building the community of seller
and buyer. This group had advantage of orienting on the mobile platform from the beginning.
Therefore, it was appropriate with mobile users for rich features, and good technology platform.
Figure 139: Application mRaovat only works on mobile platforms
86
II. BANKING SERVICES - MOBILE PAYMENT
1. Electronic payment services on mobile
According to the report "Mobile Commerce in emerging Asia" in 2014 by Sony Ericsson
Telecom Group that studying on market-based mobile commerce in developing countries in
Asia, the research results showed that the demand of transferring - receiving money of
consumers in Vietnam accounted for 45% of the population, which was also the basis for the
development of application for money transfer via mobile devices in future.
Figure 140: Demand of transferring - receiving money of consumers in 2014
Source: Report "Mobile Commerce in Emerging Asia" - Ericson 2014
Ericsson's research also showed that although the proportion of consumers using mobile
payments were limited to 1% in 2014, but this number would change due to the growing interest
of consumers for this type of payment. Ericsson announced that 19% of respondents
acknowledged the payment services on mobile and 10% expressed their interest, and desire to
learn and use the payment services on this platform.
Figure 141: Awareness of consumers about mobile payments in 2014
Source: Report "Mobile Commerce in Emerging Asia" - Ericson 2014
Vietnam consumer using payment services via mobile for two main purposes: to pay bills and
transfer money. Results of the research showed that when paying bills, 48% of consumers in
Vietnam preferred the payment application on mobile devices of bank to the application of
telecommunications unit. For the transfer, the majority of consumers trusted mobile applications
1%
10%
19%
Used to use
Wish to use
Know about
87
of banks (71%) than other applications provided by the telecommunications unit (10%) or the
card issuers (10%).
Figure 142: Type of payment applications via mobile that consumers preferred
Source: Report "Mobile Commerce in Emerging Asia" - Ericson 2014
2. E-banking services based on mobile devices
As reported at the conference "ASEAN Bank Forum" in 2013, there was a growing number of
banks in Vietnam implementing e-banking services based on mobile devices. In 2013, there were
30 banks participating in this market, up 58% comparing with 2012 (an increase of 11 banks
comparing to 19 banks that had e-banking services based on mobile devices in 2012 ).
Figure 143: The number of banks implementing e-banking services on mobile devices in
Vietnam 2013
Source: ASEAN Bank Forum 2013
48%
20%
20%
12%
Bill payment service
71%
10%
10%
9%
Money transfer serviceMobile application of banks
Mobile application of providers of telecommunication servicesMobile application of card issuers
Other applications
5 511
196
8
11
2010 2011 2012 2013
The number of banks increased
The number of banks in previous year
88
E-Banking services on mobile allowed customers to use services from simple as lookup account
balances, pay bills, purchase prepaid cards such as mobile phone cards, to complex transactions
such as transfers within the same banking system.
Along with the conveniences mentioned above, e-banking services on mobile devices ensured
the security and safety for information because a successful transaction via mobile banking needs
three factors:
1) SIM card - as customer identification
2) Password provided by bank that customers have to remember
3) Authenticity containing random information will be provided by bank (via SMS, email
or Token) when transfers incurred and costumers have to enter the correct required
information.
With the advantages of convenient and safe, the e-banking service on mobile platform was an
important trend of payment, that contributing for the payment infrastructure for e-commerce in
Vietnam. In 2014, Nielsen announced the report "Driving smarter business Decisions in
Vietnam". The report said that e-banking service on mobile platforms would be the trend growth
of Vietnam and will pass on traditional e-banking equipment such as computers (laptop, desktop)
in the next few years. Particularly in 2014, 6% of 26% computer owners that having high
incomes, used e-banking via computer; however, survey data showed that 9% of 22% smart-
phone owners that had high income, used e-banking services on mobile devices.
Figure 144: Percentage of e-banking via computer comparing to via mobile in Vietnam
Source: Driving smarter business Decisions in Vietnam 2014 - Nielsen
(*) Group having income from 30 million VND / month
89
III. INTERACTIVE SERVICES IN MOBILE
1. Taxi booking service
Taxi booking via mobile was still a new service in Vietnam, with the major participation of
foreign enterprises as Uber, Grabtaxi and Easytaxi. The service was divided into two distinct
groups: Easytaxi and Grabtaxi helped connecting the traditional taxi operators with customers
via mobile devices, while Uber connected the driver and passengers together, in general.
Although this service was still very new in Vietnam, but it already had a regular customer base to
compete with traditional taxi services. However, there was a disparity in market share among the
brands. According to an independent survey carried out by YounetCo about the distribution of
taxi booking applications in Vietnam13
, Grabtaxi accounted for 62% while the number of
EasyTaxi and Uber is 17% and 21%, respectively. The cause of the difference mentioned above
was that their marketing strategies, promotions are quite different.
Figure 145: Percentage of the distribution of taxi booking application market
Source: SocialHeat, YouNetMedia.com
Google Trends showed the search trends of Vietnam online community, which also leaning
towards GrabTaxi and Uber.
As taxi booking service via mobile was developing, in 2015, it was predicted to be an exciting
year for taxi services market and the customer would be able to use the services which becoming
better. The market would also experience the participation of Vietnam enterprises.
13
The data were published in http://www.younetmedia.com/blogs/dich-vu-dat-cho-taxi-suc-manh-se-vao-tay-ga-
khong-lo.html
GrabTaxi62%
EasyTaxi17%
Uber21%
GrabTaxi EasyTaxi Uber
90
Figure 146: Search Trends on taxi booking services
of online community from June-August, 2014
Source: Google Trends
2. Services providing vouchers, coupons, membership cards
Services that provided vouchers, coupons, membership cards to consumers via mobile apps was
not a new field in Vietnam. Large enterprises which have group purchasing services (Hotdeal,
Muachung, ...) were building mobile applications for their own. Survey of VECITA with 900
consumers showed that, compared with 2014, the percentage of users using mobile apps for
online shopping doubled the previous year and reached 13% .
Not only local enterprises, but also big manufacturers of mobile devices were also implementing
the investment in this segment with the aim of adding value to the customer when buying their
products.
Figure 147: The interface of mobile application Muachung
Galaxy Gift and Lumia Vip were the first attempt by Samsung and Microsoft in order to hit the
market of providing voucher, and coupon via mobile devices in Vietnam. When users installed
91
these applications, they would receive the discount code to save money when using the catering
services, spa services or other services in promotional system. Especially, these applications
integrated with the utility navigation to help users identify the promotion in areas surrounding
their positions.
Figure 148: Lumia VIP app allows users to search promotions in areas surrounding them
In order to use one promotion, users only needed to do a few simple steps to create a discount
code. When they gave that code to the store employee, the price would be reduced respectively.
If the shop had signed with My Points of Microsoft (Lumia Vip Application), the user would
receive accumulated points, for example , for each 100,000 vnd paying, they would receive 100
points; then they could use that point to reduce the payment for other services.
The solution of the smart card member providing through mobile devices was also developed by
some enterprises. The application helped users get incentives in the form of accumulated points,
or promotions when they use the provided service. Users could use the application in the list of
preferential locations and to receive special form of service. As accessed the location, users
simply need to open the application, click on the location and display E-Card on the screen.
Then, they show that phone screen to the staff.
Figure 149: Application Foody with feature e-Card
92
IV. DIGITAL CONTENT SERVICES
1. Digital content business on mobile devices
Digital content services on mobile devices are deployed in Vietnam was very diverse way with
many groups, but if divining by the payment method, there should be two main groups:
- Users pay directly and use the digital content
- Users subscribe to use digital content online services
The form of providing the first service had been developed for a long time, from the early days
of digital content services based on mobile platform. Users could download ringtones, ringback
tones, wallpapers ... to their phones via SMS, or download it directly via the Internet. Payment
fee could be paid via SMS that charging directly to users' accounts, or charging to postpaid
account, or by scratching cards, online payments via bank cards ...
VECITA had done a quick interview about consumer attitudes on the issue of payment for digital
content on mobile for 30 random people who own smart phones in Hanoi. The results showed a
fact that consumers were not psychologically ready to pay for digital content. Instead of that,
most of consumers were still looking for free content (10%) , or copyrighted content but had
been unlocked (80%) and only a few people were willing to pay for copyrighted content (7%).
Figure 150: The use of digital content on mobile of consumers
The second form allowed users to choose the periodic payment with a subscription fee to use the
service. The mobile application allowed users to watch TV programs, or some applications
would allow users to watch high-resolution movies after paying a certain fee.
In fact, consumers in Vietnam had started to change habits for paying costs to be able to use the
online services such as watching movies on mobile. Results of a quick interview with 30
consumers showed that nearly 30% of them were willing to pay for online movie on mobile.
10%
80%
7% 3%
Only use free content Looking for unlocked copyright digital
content
Paying for copyright digital content
Never
93
Figure 151: The willingness to pay for online movie on mobile of consumers
2. Digital map on mobile devices
According to statistic of GlobalWebIndex coordinated with WeAreSocial to announce in January
2015, 16% of Vietnam's population used location search service on mobile devices.
Figure 152: The mobile application that people using
Source: WeAreSocial
The application of searching content and location information on a map was very diverse with
platforms of foreign enterprises such as Google Maps, Nokia (Here Map), Apple Map ... or of
local enterprises as Diadiem.com, Thodia.vn ... The common thing of these solutions was the
base on geographical maps to provide information about landmarks, entertainment, business
address, ... to help users access easier to information of places around their positions. However,
in this segment of foreign enterprises were many advantages with technological resources and a
large number of users.
27%
73%
Yes
No
94
V.APPLICATIONS AND GAMES ON MOBILE
1. Mobile application
Mobile application market (App Store) was a distribution platform for mobile applications.
Normally, the applications operated on certain platform and equipment, such as the application
of the operating system iOS was only available on Apple App Store. Calculated separately on
Google Android Market, the number of mobile applications had reached approximately 1.5
million, however, the number of applications has "low quality"14
accounted for 15% - according
to statistics collected on the website www.AppBrain.com.
Figure 153: Evaluating the quality of applications on Android
Source: www.appbrain.com
There was still a large gap between the number of free applications and applications with fee in
the market: The number of free application in Google's Android market was approximately
1,251,484, accounted 85.33% of the total number of applications offered on the market.
Figure 154: The number of mobile applications for free and with fee of Android
The most popular applications of Android were in the field of Education - 113.342 downloads;
Lifestyle - 103.818 downloads; and Entertainment - 102.345 downloads.
14
The application of low quality as evaluated by Google would be removed from the market quarterly
215.204
1.251.484
Free application
Free application
95
Figure 155: The application forms available on Android
Although the number was still limited, however, the applications developed by local developers
were also received by the community with high-rate and great downloads on the Apple iOS app
market, Google Android and Microsoft Windows Phone.
2. Games on mobile devices
According to Vietnam Application Market Report 2014, by Appota.com in the second quarter
2014, in the form of business applications on mobile devices, mobile game applications bring the
most profitable business, revenue up to 60% of the total revenue of applications in Vietnam. Ads
in applications brought the revenue up to 27%, while the revenue from the payment of download
applications (IAP - InApp Purchase) was 13%.
Figure 156: Percentage of revenue from the type of applications on mobile
Source: Appota 2014
2014, Newzoo associated with Facebook, Microsoft, EA and Baidu to conduct market research
on mobile games in all Southern Asia countries. The results showed that, with the growth at
87.7% per year, the revenue of mobile game application market in Vietnam could reach 36.5
Mobile game
60%Application
with IAP
13%
Application
with ads
27%
Mobile game
Application with
IAP
96
million USD, an increase of 22.5 million USD compared with 2013 and was estimated to reach
161.6 million USD in 2017.
Figure 157: The growth of the mobile game application market in Vietnam
Source: Newzoo 2014
97
Responsible publisher
NGUYEN HOANG CAM
Chief author
TRAN HUU LINH
Director General of Vietnam E-commerce and Information Technology Agency
Content editor
LE DUC ANH – LE THI HA – LE THI THU HANG
NGUYEN DIEU HUONG – NGUYEN HUU TUAN
Cooperation unit providing information and data
VIETNAM E-COMMERCE ASSOCIATION
Copyrighted by
VIETNAM E-COMMERCE AND INFORMATION TECHNOLOGY AGENCY
MINISTRY OF INDUSTRY AND TRADE
www.vecita.gov.vn
