Today, along with the strong development of science and technology and especially the development of information technology, e-commerce was born and developed rapidlyall over the world..
Trang 1E-commerce: History, development, advantages and disadvantages
Table of contents
Foreword 05
I Overview of e-commerce 05
1.1 Definition of e-commerce 05
1.2 Features and types of E-commerce 05
1.2.1 Features of E-commerce 05
1.2.2 Types of E-commerce 07
II Situation of e-commerce in Vietnam 08
2.1 History and development of e-commerce in Vietnam
09
2.2 Current status of e-commerce in Vietnam
09
2.2.1 Infrastructure for e-commerce development in Vietnam 09
2.2.2 The development of E-commerce in Vietnam in recent years 14 2.3 Opportunities and challenges of e-commerce in Vietnam
Trang 216 2.3.1 E-commerce opportunities in Vietnam 16 2.3.2 Challenges of e-commerce in Vietnam 20
2.4 Some solutions to promote e-commerce development in Vietnam
22
III Conclude 24
Trang 3
Today, along with the strong development of science and technology and especially the development of information technology, e-commerce was born and developed rapidlyall over the world E-commerce covers a wide range of socio-economic activities,
bringing many benefits and at the same time bringing many challenges for users
E-commerce develops rapidly globally, especially in industrialized countries,
countries with developed economies have also been participating in the development of e-commerce E-commerce offers potential benefits that help participants gain rich
information about markets and partners, reduce costs, expand business scale, shorten business cycles
Recognizing the role and utility of e-commerce with the development of the country
in the actual conditions of Vietnam That's why we would like to study the topic
E-Ecommerce: History, development, advantages, and disadvantages
Trang 41.2 Features and types of E-commerce
1.2.1 Features of E-commerce
ICT: The development of E-commerce has a close interrelationship with the progress
of ICT E-commerce is the application of IT into all kinds of commercial activities Therefore the advances of information technology boost the rapid growth of E-
commerce, and vice versa, the flourishing of E-commerce also promotes and gives rise toseveral branches of ICT, such as hardware and software for E-commerce apps and
Payment services
Platforms: E-commerce transactions are performed completely online In traditional commercial activities, parties have to meet in person for negotiation and transactions to sign the contract As for E-commerce, thanks to the use of electronic means with
connection to global networks, mostly the Internet, parties can now negotiate their
contract without having to meet directly
Range of Operation: Globally; in other words, E-commerce operates in a borderless market This is demonstrated by the fact that people from any nation in the world do not have to commute to any locations to make a transaction, instead of doing so through E-commerce websites or social networking sites
Participants: in e-commerce activity, there must be at least 3 parties involved This includes the participation of the third party who creates an environment for digital
transactions They are Internet service providers and Certificate authorities, responsible for sending and storing information of the parties involved in the transaction, as well as verifying its credibility
Time: Parties involved in E-commerce can transact 24/7 wherever there is a
telecommunications network and electronic means of connection to this network, which are highly automated vehicles that help speed up the transaction process
Trang 5The information system: The information system is the market In E-commerce, parties don’t have to meet each other face to face, but they can still proceed with
negotiating and signing contracts To do this the parties must access each other’s
information system or the information of search solutions through the internet, extranet, etc to learn about each other to negotiate and sign contracts
Because of the aforementioned features, we can define the main advantage of
E-commerce as a convenience In other words, E-E-commerce is not limited by geographical space, which means that it is available anywhere and at any time Transactions can be carried out at a distance, between city and countryside, from one country to another This allows businesses to lower costs For consumers, they can sit at home to order, shop for a variety of goods and services quickly
Trang 6consumers bid to purchase it; the third party generally charges a flat fee or commission The sites are only intermediaries, just there to match consumers They do not have to check the quality of the products being offered This type of e-commerce is expected to increase in the future because it cuts out the costs of using another company.
Consumer to Business (C2B)
Consumer-to-business is an electronic commerce business model in which consumers (individuals) offer products and services to companies and the companies pay them This business model is a complete reversal of the traditional business model where companies offer goods and services to consumers (B2C) We can see this example in blogs or
internet forums where the author offers a link back to an online business facilitating the purchase of some product, and the author might receive affiliate revenue from a
Trang 7Government to Citizen (G2C)
Government-to-Citizen is the communication link between a government and private individuals or residents Such G2C communication most often refers to that which takes place through Information and Communication Technologies (ICTs)
II Situation of e-commerce in Vietnam
2.1 History and development of e-commerce in Vietnam
In 1994: the internet was widely used, businesses began to use the internet for
commercial purposes Since 2000, the internet has been constantly developing and being exploited in business, creating new opportunities and new challenges for traditional businesses and leading to the rapid development of e-commerce In Vietnam, the internet officially appeared in 1997 In 2003, e-commerce was taught at universities
With the development of the Internet, 3G, and mobile devices, especially smartphones and thousands of bank cards issued every day, Vietnam's e-commerce is growing stronglyand booming in the coming years, according to a survey of the Ministry of Finance Industry and Trade show that more than 70% of consumers prefer to shop online
Since the e-commerce model has helped businesses and customers more convenient inthe buying and selling process In the early days, when customers were still unfamiliar with online purchases, it was difficult for businesses to brand and build trust with online customers Until now, online shopping has become a habit of many gods because of the convenience it brings
In 2017, Vietnam e-commerce marked a boom in cross-border e-commerce The growth rate of the e-commerce market in 2017 and 2018 is estimated at over 25%
Particularly in the field of online retail, information from thousands of e-commerce websites shows that the revenue growth rate in 2017 increased by 35% In the field of payment, in 2017, the growth in the number of online transactions of domestic cards
Trang 8increased by about 50% compared to 2016 while the transaction value increased by 75% According to Euromonitor data, with an average growth rate of about 33% per year, it is expected that Vietnam's e-commerce value will reach 106 trillion VND in 2022,
equivalent to about 4.6 billion USD US dollars
2.2 Current status of e-commerce in Vietnam
2.2.1 Infrastructure for e-commerce development in Vietnam
Legal infrastructure
To take advantage of the great opportunities that information technology brings, many countries in the world as well as Vietnam have the policy of developing e-commerce activities; has built a complete and transparent legal system to regulate relationships arising from e-transactions, and protect the legitimate rights and interests of organizationsand individuals participating in this relationship
Law on Electronic Transactions: has a fairly wide scope of regulation: Electronic
transactions in activities of state agencies and electronic transactions in civil, business, and commercial fields This Law includes many provisions on Data messages, electronic signatures, and authentication of electronic signatures; concluding and performing
electronic contracts; Security, safety, protection, and confidentiality in electronic
transactions; Resolve disputes and handle violations in electronic transactions;…
Commercial Law: is an important basis for commercial activities, including
e-commerce This Law stipulates: In commercial activities, data messages that meet the conditions and technical standards as prescribed by law are recognized as having the same legal value as documents In addition, the display and introduction of goods and services on the Internet is also considered a form of display and introduction of goods and services
Intellectual Property Law: In this law, there are some provisions related to
e-commerce, such as regulations on; Acts of copyright infringement, related rights
Trang 9infringement in the electronic environment Although there are no specific regulations related to the field of e-commerce, the principles in the Intellectual Property Law can still
be applied to the field of e-commerce
In addition, some other legal documents also have provisions governing e-commerce activities such as the Law on Information Technology, the Law on Customs, the Civil Code, etc
Technology infrastructure
About Internet - Telecommunications infrastructure
Over the past 20 years, from nothing, Vietnam has built a modern infrastructure on parwith many countries in the world Vietnam has connected with many international
undersea fiber-optic cable routes: AAG, SMW3, IA, APG, and AAE-1; Millions of
kilometers of fiber optic cable and ADSL connect to 100% of communes and wards nationwide with an average Internet connection speed of 9.5 Mbps, ranking 58 in the world; Vietnam currently has more than 400,000 domain names ".vn", confirming the strong development achievements of the Internet
By the end of January 2020, Vietnam had 68.17 million Internet users, equivalent to 67% of the country's population With this number, Vietnam is the country with the 12th highest number of Internet users in the world and 6th out of 35 countries/regions in Asia (according to Internetworldstats)
After 20 years, Vietnam is a country with 2G, 3G, and 4G telecommunications
infrastructure covering the whole country with a system of more than 150,000 BTS stations The percentage of mobile users reached more than 128 million subscribers, including more than 36.2 million mobile broadband subscribers and nearly 11 million Internet subscribers
These figures show that the telecommunications - Internet infrastructure is a launchingpad for Vietnam's economic development and international integration
Trang 10Payment infrastructure - electronic payment
In recent years, the infrastructure and technology for non-cash payment, especially electronic payment, has been continuously focused on investment, improving quality, andpromoting efficiency Advanced and modern payment technology, serving well for the provision of new non-cash payment services and means
The technical infrastructure for card payment has been improved in quality, focusing
on development investment; POS has now been installed in most establishments,
distribution chains, retailers, large hotels, and is gradually expanding to medical facilities,hospitals, schools
By May 2020, the whole country had about 19.2 thousand ATMs, more than 277 thousand POS, about 78 commercial banks deploying payment services via the Internet (Internet banking), 49 commercial banks providing payment services via the Internet payment via mobile phone (Mobile Banking), 30 commercial banks and 6 payment intermediary service providers coordinated to deploy payment with about 80,000 QR Code points; The State Bank has licensed 34 payment intermediary service providers, in which e-wallet services; electronic payment gateway services, support collection, and payment; electronic money transfer service Bank cards continued to grow, by the end of March 2020, the number of cards in circulation reached 103.1 million (up 22.4%
compared to the end of 2017)
New and modern technologies in payment such as the application of fingerprint
authentication, face recognition, use of quick response codes (QR Codes), encryption of card information, contactless payment, mPOS technology is researched, cooperated, and applied by banks, especially the payment by QR Code associated with promoting
payment via mobile phone in line with the development trend in the world and consumer behavior
Safety and security in e-commerce
Trang 11In addition to the potential for development, there are still challenges and risks that hold back the breakthrough of e-commerce such as security issues for information
technology systems, difficulties in protecting customer data against risks hacked and stolen
The security challenges that E-commerce companies in Vietnam are facing are
payment fraud, Spam, Phishing, Bots, DDoS, Brute-force attacks, SQL injections, etc To solve these security problems, Vietnamese e-commerce companies also offer many
solutions First, use HTTPS HTTPS is a mandatory standard for all websites, especially e-commerce HTTPS protocol helps secure messages transmitted between the server and the client This not only helps secure the user's account but also helps the e-commerce website to avoid many risks of being hacked
Regarding payment gateway security, payment security systems of enterprises need to comply with minimum standards such as Integrated SSL certificate to encrypt
transmission information, PCI DSS security standard, OTP password, 128-bit MD5 encryption, user token storage mechanism, does not store user card information
Security solutions for e-commerce businesses such as: using virus and
anti-malware software, using Web Application Firewall, using advanced SSL certificates, multi-layer security, data backup, Use security plugins for your website,…
Human resource infrastructure
The potential for development in the field of e-commerce in Vietnam is great, but currently, human resources in the field of e-commerce in Vietnam are both short in
quantity and weak in quality meet current and future development needs The industrial revolution 4.0 and e-commerce require workers to have high qualifications, meanwhile, the quality of human resources in our country is still low, the labor structure is
unreasonable, This leads to the fact that Vietnam is gradually losing its competitiveness
in the international labor market and requires early solutions
Trang 12In the field of e-commerce, we are very short of a qualified labor force in information technology and e-commerce Currently, many businesses are lacking skilled workers in e-commerce According to the Department of E-commerce and Information Technology (Ministry of Industry and Trade), based on the annual survey results for a part of regular e-commerce application, more than 80% of enterprises participated in the survey
(equivalent to more than 1,000 enterprises) shows that the demand for trained
e-commerce human resources is very necessary for businesses This demand will continue
to be much greater when in the coming time, Vietnam becomes a country with a large application of information technology in management, production, and business
activities, so the exchange Online commerce will become more and more popular
To solve the problem of human resource shortage in the e-commerce industry, some universities in Vietnam are currently training bachelors in e-commerce However,
compared with the growth rate and actual demand for human resources for this industry, the current supply has not met the demand Because according to a report of the Vietnam E-commerce Association - VECOM, in 2017 up to 31% of enterprises had difficulties in recruiting workers related to information technology and e-commerce
2.2.2 The development of E-commerce in Vietnam in recent years
As of January 2018, Vietnam had 64.05 million internet users, accounting for 67% of the population, an increase of 6% compared to 2016 The number of Internet users is considered to be at a high level in the world, but the percentage of people using the
Internet is still average Vietnam has 55 million social network users, accounting for 57%
of the population Information updates continue to be the most common daily internet usegoal, up from 87% in 2015 and to 93.5% in 2016
The majority of respondents use the internet daily to participate in online forums, social networks (81.2%), e-mail access (73.8%), watching movies, listening to music (64.8%), and academic research (63.9%) For activities such as personal purchases, the majority of respondents have a monthly activity frequency (36.2%) The latest report of