return icon Vietnamnet.vn

Policies needed to ensure sharing economy development is on-track

Sharing economy was not only creating opportunities to increase income but also opening up a new and flexible market, thereby creating a growth engine and increasing productivity for micro, small and medium – sized enterprises.
Drivers of ride hailing apps. As sharing economy was a new trend, it was necessary to keep a close watch on its development and its business models. — Photo doanhnghiephoinhap.vn

It was critical to raise appropriate solutions to promote the development of a digital economy and social security for individuals participating in the sharing economy, according to the Central Institute of Economic Management (CIEM).

Dang Thuy Trang, Head of Public Affairs at Grab, said that digital platforms made it easier for enterprises and individuals to develop online sales and delivery channels.

The report by Bain & Company titled “The platform economy: Southeast Asia’s Digital Growth Catalyst” revealed that digital platforms helped 89 per cent of enterprises expand their customer base and 84 per cent have higher sales per customer and 71 per cent report higher profits.

More importantly, 65 per cent of enterprises said they were more likely to recover from the COVID-19 pandemic thanks to the sharing economy.

Trang said that sharing economy was not only creating opportunities to increase income but also opening up a new and flexible market, thereby creating a growth engine and increasing the productivity of micro, small and medium–sized enterprises.

In fact, the sharing economy has proved its superiority in terms of saving resources and minimising transaction costs in economic activities. The use of digital platforms also helps increase the efficiency and transparency of the economy, thereby supplying the State agencies in management, she said.

However, the sharing economy needed appropriate policies to develop on the right track and contribute to promoting the digital economy and ensure social security for individuals participating in the sharing economy, especially in the context that there was an increasing number of people moving to work in companies operating under the sharing economy models.

Luu Duc Khai from the CIEM said that the sharing economy created new relationships in the market, especially three-party relationships, instead of two in economic contracts.

There were problems in ensuring the benefits for both service providers and users, conflicts of interest between enterprises operating traditionally and those following the sharing economic models and difficulties in tax collection.

Meanwhile, the legal framework for managing the sharing economic models remained inadequate.

Khai said that there was a pressing need for improving the State capacity to manage the sharing economy to ensure network security, information safety, the privacy of citizens, organisations and sovereignty in cyberspace.

Vietnam also needed to fully implement international commitments on services market opening, including the Internet service and e-commerce to encourage enterprises to promote business on digital platforms, Khai stressed.

According to Chu Thi Hoa, Deputy Director of the Institute of Legal Sciences under the Ministry of Justice, as the sharing economy was a new trend, it was necessary to keep a close watch on its development and its business models.

At the moment, it was not necessary to enact a separate law to regulate it but amendments should focus on limiting risks that could arise from the development of the sharing economy, including risks to partner service providers and users, risks of peer-to-peer lending turning into usury and risks of personal data breaches.

Hoa said that the State management needed to be flexible to promote innovations and start-ups. For issues of the sharing economy that had not been managed or well understood, consideration should be given to the application of sandboxes. 

Source: Vietnam News

MORE NEWS

Vietnam among top 10 best places to go for budget honeymoon

The nation has been listed among the top 10 best places to go for a budget honeymoon in 2023 by prestigious global travel website Lonely Planet.

Vietnam’s industrial production to rise 6.6% in 2023: S&P Global

Vietnam is predicted to record a rise of 6.6% in industrial production in 2023, according to S&P Global Market Intelligence.

Vietnamese athletes to receive 1 mln USD for Paris Olympic gold

Vietnamese athletes competing in the Paris 2024 Summer Olympics, scheduled for July 26 to August 11, 2024, will receive 1 million USD in bonus for each gold medal; 500,000 USD for silver and 200,000 for bronze.

VIETNAM NEWS HEADLINES FEBRUARY 1/2023

Party chief’s book on corruption fight to make debut

Google Doodle honours first female Vietnamese newspaper editor Suong Nguyet Anh

The world’s most popular search engine Google has paid tribute to Suong Nguyet Anh, the first female editor of the nation’s first women’s newspaper by posting a drawing of her on its homepage on February 1.

Banh Cuon among world top 10 dishes visitors should try in 2023

Australian travel magazine Traveller has listed Banh Cuon, Vietnamese steamed rice rolls, among the top 10 best meals from around the world that visitors should try in 2023.

Party chief directs key tasks for new year

Party Secretary Nguyen Phu Trong on Tuesday chaired a meeting of the Secretariat of the Communist Party of Vietnam (CPV) Central Committee, mapping out key tasks for the new year.

VIETNAM BUSINESS NEWS FEBRUARY 1/2023

Domestic market to drive tourism recovery in 2023: insider

Some big companies made profits in 2022, but others incurred losses

While Duc Giang Chemicals and Binh Son Refining and Petrochemical have reported big profits for Q4 and the year 2022, Vietnam Airlines and leading steel manufacturer Hoa Phat saw big losses for the year.

Vietnamese couple help German bicyclist in distress

Trung and Nhung, a Vietnamese couple, on the way to travel across Vietnam on Tet holiday, saw a foreigner who was facing troubles because of strong winds in Ninh Thuan.

Vietnam develops green agriculture to increase exports to EU

Vietnam is paying attention to mobilising resources to invest in developing green agriculture with an aim to raising the market share of its agricultural exports to the European Union.

Vietnamese team comes first at Southeast Asian Fencing Championship

Vietnam secured the first position at the 2023 Southeast Asian Fencing Championship which has taken place recently in Malaysia.

2023 - Time for Edtech to thrive in Vietnam

Experts are positive about the development of Vietnam’s education technology (Edtech) market in 2023 if local Edtech companies can overcome post-pandemic challenges.

UK imports from Vietnam in 2022 put at over US$6 billion

United Kingdom (UK) imports from Vietnam amounted to US$6.06 billion last year, rising by 5.2% over 2021, according to the General Department of Vietnam Customs.

Five more registration officials in Hanoi prosecuted for soliciting bribes

Police of Hanoi’s Thuong Tin District has started legal proceedings against five officials at 2915D Registration Centre for taking bribes.
back_to_top