VietNamNet Bridge – The latest report by the Vietnam E-commerce Association unveiled that Hanoi topped the Vietnam E-commerce Index 2014, followed by HCMC, Danang, Haiphong, Binh Duong, Dong Nai, Khanh Hoa, Can Tho and Nghe An.

The northern mountainous province of Lai Chau was at the bottom, according to the report released by the association last Friday. The association said the index was built on e-commerce application at nearly 3,500 firms nationwide and major criteria regarding human resources-Internet infrastructure, transactions between enterprises and consumers, transactions among enterprises, and online services.

The association’s general secretary Nguyen Thanh Hung told the Daily that there were big differences among localities in terms of their application and preparedness for e-commerce, particularly between Hanoi and HCMC and other localities.

The notable change, according to Hung, is that e-commerce on the mobile platform has grown rapidly. The report showed 10% of enterprises in Vietnam had made full use of mobile apps for their operations while 15% had developed the mobile versions for their websites.

The payment service via mobile phones had grown quite fast as of last year, with seven million transactions worth VND50 trillion conducted in the first half of last year alone. Besides, the number of customers using mobile banking was higher than that of Internet banking.

Hung said social networks are now not just an information sharing channel but a platform facilitating development of e-commerce. According to the report, 24% of enterprises were doing business on social networks and 16% said these networks were helpful for them.

The report suggested things that need to be improved for e-commerce. For instance, goods delivery for orders via the e-commerce websites did not meet the demand of customers. Half of e-commerce users said delivery service was not good, and around 10% said service quality was poor.

The interests of consumers were not protected properly when over 80% of them said the quality of products sold online was lower than advertised.

The Vietnam Standards and Consumers Association (VINASTAS) said the number of complaints related to online shopping deals sent to the association was on the rise.

Hung proposed the Government develop an appropriate policy to support e-commerce in many fields. Developing e-commerce does not simply mean building infrastructure as it also requires manpower with knowledge of online business.

“E-commerce has grown remarkably in Vietnam but the growth rate is just above the average in the Southeast Asian region. Compared to the world’s stage of e-commerce development, Vietnam still has a long way to go,” Hung said.

Though e-commerce transactions are made online, they still need infrastructure such as roads and warehouses for goods transport and storage. Therefore, if such infrastructure facilities are not properly developed, it is not easy to boost e-commerce in remote areas.

Hung expected as Vietnam’s e-commerce has a bright future, it would attract the participation of many enterprises with much experience and financial capability.    

SGT