CHAPTER 1: OVERVIEW OF PROMOTING CROSS-BORDER E-
1.2 PROMOTION OF CROSS-BORDER E-COMMERCE
E-commerce promotion can be known as all the measures that can influence, and encourage the development of a part of or the whole process of commercial activities by electronic devices that are connected to the internet.
Cross-border e-commerce promotion, which could make distance shorten between product and market in time and space. It will be the main means to facilitate trade, upgrade trade development and promote the effective implementation of national policy. There is a new development of cross-border e-commerce and it also spawned a new ecological model. It will help cross-border ecommerce develop better through
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building a new ecosystem based on cross-border e-commerce business model. (Wanxin X., 2016)
Cross-border e-commerce is playing an important role in transforming traditional international trade and boosting economies. In traditional cross-border trade, customers can purchase overseas products through a long supply chain involving several intermediaries. Cross-border e-commerce shortens this supply chain by involving cross- border e-commerce platforms as the intermediaries along the supply chain, which also substantially reduces customer's waiting times (Xu, 2017). This trend of consumption upgrading is regarded as another driver for the promotion of cross-border e-commerce.
(Nielsen, 2017)
Cross-border e-commerce promotion is the implementation of measures to support import and export activities through electronic means, between parties in transactions from different countries. Cross-border e-commerce promotion includes two activities: export promotion and import promotion through e-commerce. Promotion of export (import) through e-commerce is the activities aimed at increasing the export (import) of a country or a business through e-commerce platforms. (Le Hong Nhung, 2019)
1.2.2 Criteria for assessing cross-border e-commerce promotion a) The infrastructure
E-commerce is gradually taking an important role in the overall economy.
Therefore, to assess the development of this industry, especially in promoting cross- border e-commerce, it is obligated to mention the infrastructure.
Firstly, the information technology system. Information technology drives innovation in businesses. That is demonstrated through intelligent applications, improved data storage, faster processing, and wider distribution of information. The rapid growth of the internet created an exaggerated expectation that it would enable companies to create a new, standardized mode of communication (Sinkovics, 2007). The
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development of information technology also helps to improve the working system, support businesses to operate more efficiently. In promoting cross-border e-commerce, the application of information technology greatly supports the process of buying, selling, and exchanging goods, especially through international e-commerce floors, websites.
Secondly, the payment system. Cross-border e-commerce is the implementation of transactions between different countries, so the payment process is also different from domestical trade. Electronic payments can be understood as a payment mechanism using electronic media that does not involve cash. E-payment is an important aspect of e- commerce (Fatonah S., 2018) Electronic payment is increasingly popular because of its convenience and shortens transaction time and order fulfillment for businesses as well as customers. In the past, the purchase and sale of goods were normally exchanged for cash, but in e-commerce, consumers aimed for safety, convenience and transparency, so there were many forms of electronic payment such as card payment, gateway payment, e-wallet payment, mobile app payment (mobile banking, QR code,...)
Thirdly, the logistics system. Logistics is an important link in the supply chain, this is the movement of goods to the end customers. However, in cross-border e- commerce, customers are in different countries, so it will be more difficult to transport goods compared to buying and selling domestically. Since the operations of e-commerce logistics system directly affect the realization of transactions and the experience of the customers, it is an important assurance for supporting the development of cross-border e-commerce business (Jiao Z., 2015). The development of strategies to improve the quality of transport forwarding and administrative procedures will actively support the promotion of e-commerce.
b) The human resources
The importance of human resources has increased significantly due to new places and the role of the human in all sectors of society (Jurčević, 2009). Cross-border e- commerce promotion requires high-quality human resources, deep expertise in professional knowledges, international law and regulations, foreign language skills, and
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the ability to apply information technology. Improving the quality of human resources has a great influence on the construction of cross-border e-commerce systems.
c) The size and growth rate of the industry
This is a criterion to evaluate the development of e-commerce in general and cross-border e-commerce in particular. The use of growth rate is one of the simplest methods to estimate the future growth of an industry, helping to determine whether the industry has growth potential or not, and then come up with building strategies to overcome, improve efficiency. The scale and growth rate are shown in reports and statistics of agencies, organizations, or enterprises. Cross-border e-commerce promotion will be assessed focusing on the following subjects:
First, import-export enterprises: This is an important subject in the cross-border e-commerce system. Import-export enterprises are the owners of products. They devise strategies aimed at bringing goods to consumers in other countries around the world, while also importing goods from foreign partners. Import-export enterprises can actively promote cross-border e-commerce through email offers, or use international e-commerce floors, websites to post products and get close to the targeted customers.
Second, e-commerce enterprises: This is the enterprise that owns the e-commerce floor. They are responsible for connecting sellers and buyers through the e-commerce floor system and websites. The famous international e-commerce floors are Amazon.com, Alibaba.com, Ebay.com,... The quality of e-commerce floors has been upgraded and improved to suit consumers or business partners using a floor service.
Enterprises providing e-commerce services are an important link in promoting e- commerce, especially cross-border e-commerce.
d) The industry development policies
The burgeoning cross-border e-commerce industry has become an essential impetus of the innovation-driven development strategy of the economy. However, sustainable healthy development of this industry requires regulation as well as support
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from policies. (Ma, S. & Zhang, H., 2018). Government policies and the legal system at the national and international level play an important role in implementing sector development strategies, especially for cross-border e-commerce. The essence of cross- border e-commerce is transactions made through the internet and between entities in different countries, so it is also governed by domestic laws as well as international law.
If there is a response and support from the government, e-commerce promotion will become effectively.
The Government plays a key role in trade promotion. They enacted policies, build legal systems to support and develop e-commerce development. That is reflected in activities such as: Supporting the construction of infrastructure; Establishing the legal basis for cross-border e-commerce; Administrative reform; Expand international cooperation relations and sign cross-border e-commerce agreements with countries in the world; Organizing seminars and training courses to improve the quality of the cross- border e-commerce industry; Actively build a website to promote online export activities.