Support businesses to export via e-commerce

Need a mechanism to support the development of Vietnamese e-commerce businesses

E-commerce is becoming a popular shopping channel for tens of millions of Vietnamese people. According to market reports of e-commerce platforms, revenue in the third quarter of 2019 exceeded 103,000 billion VND, an increase of about 22% over the same period. With a growth rate of 16% - 30% per year, Vietnam is considered one of the fastest growing e-commerce markets in Southeast Asia and the world . The e-commerce pie is so attractive, but it also reveals many shortcomings, from high floor fees, to the situation of advertising too much or unfair competition.

In fact, recently, there have been cases of celebrities selling products through livestream sessions with large revenues but false advertising, selling poor quality products, and avoiding responsibility when reported. Last year alone, the tax industry handled more than 33,000 cases of e-commerce business violations with the amount of tax collected and fined nearly 1,400 billion VND. Obviously, there are still many legal gaps in this field. Therefore, in the discussion session at the National Assembly on the afternoon of November 13, many delegates suggested that there should be clear regulations for the e-commerce market to develop healthily, protect the rights of both consumers and support the development of domestic e-commerce businesses.

Discussing at the National Assembly, delegates pointed out a reality, that is, the current e-commerce floor fees are quite high, averaging 15-30%, causing both buyers and sellers to suffer. Sellers' profits are eroded while buyers have to buy goods at higher prices.

Currently, more than 90% of the e-commerce market belongs to foreign-invested platforms. Therefore, it is necessary to have policies to encourage and prioritize domestic e-commerce platforms.

Ms. Doan Thi Thanh Mai - National Assembly Delegate of Hung Yen province said: "Currently, some trading floors of Vietnamese enterprises are applying a model from factory to consumer, without charging sellers. As a result, Vietnamese goods are cheaper, more competitive and consumers benefit directly. Therefore, I think the law should have regulations to encourage these models, support small businesses and Vietnamese agricultural products".

Regarding the requirement that e-commerce platforms must store all video and audio data of live streaming sessions for at least a year, many delegates said that some live streaming sessions last all day, and the data is very large. If this regulation is applied, small businesses will face difficulties due to increased costs.

Ms. Nguyen Thi Viet Nga - National Assembly Delegate of Hai Phong City shared: "It will entail a huge cost for businesses operating on e-commerce platforms. This requirement is far beyond the capacity of many domestic businesses, especially small businesses. Therefore, for this content, I propose allowing selective storage according to the type of goods sold in livestream sessions, the risk level of buyer complaints after the livestream session; not applying the storage requirement indiscriminately and equally to all livestream sessions".

Regarding the criteria for displaying goods and services, delegates emphasized the need for a clear monitoring mechanism. Otherwise, the algorithm could become an "invisible gatekeeper", prioritizing the owner's own products on the platform and pushing small businesses out, causing unfair competition.

Mr. Be Trung Anh - National Assembly Delegate of Vinh Long province commented: "The request to publicize the basic logic of the algorithm, the proposed display is not to reveal technological secrets but to ensure competitiveness and information transparency. Otherwise, we will witness the scene of "the electronic market is open but the booth is locked". That is the new form of monopoly, monopoly by algorithm".

Vietnamese e-commerce is a shopping playground for millions of people. A transparent and fair mechanism will help this playground develop sustainably, so that everyone can benefit.

The E-Commerce Bill also creates an important legal foundation to promote digital exports.

Strengthening support for export enterprises through e-commerce

Although there are still many gaps, it is undeniable that e-commerce is a modern sales channel, helping to directly connect buyers and sellers, not only in the domestic market, but also reaching foreign markets. Many businesses believe that the E-commerce bill also creates an important legal foundation to promote digital exports - a field that the Government is identifying as a strategic pillar. This supports businesses to expand new growth spaces, in the context of increasingly fierce global competition.

As one of 200 enterprises selected by the Ministry of Industry and Trade to participate in the Vietnam National Pavilion on Alibaba.com, for the past 4 months, the enterprise has learned how to operate, promote its brand, and introduce its products to international customers.

Ms. Mai Thi Y Nhi - Sales Director of My Phuong Food Company said: "That is the advantage to be present, we are in the general booth of Vietnam and have to do more to follow the trend, we cannot just keep promoting the same trend, customers also look for products there a lot. That is inevitable".

The company has been operating a store on the Amazon e-commerce platform for more than two years now and has achieved positive results in reaching many new customers. The company believes that the E-commerce Law will be an important legal corridor, helping to boost digital exports, expand markets faster and reduce risks in international transactions.

Mr. Nguyen Trung Dung - Chairman of the Board of Directors of DH Foods Company shared: "The direction of the Government and the Ministry of Industry and Trade on Amazon supports 1,000 Vietnamese businesses, training at least once a month. We are redoing the booth to make it more beautiful, redoing the videos, redoing the content. The new shipment after the change will start going this week."

In the context of digital exports becoming an increasingly important driving force, cross-border e-commerce platforms believe that Vietnam's development of the Law on E-commerce is a necessary step, creating trust and encouraging deeper cooperation.

Mr. Young Liu - Country Director of Alibaba.com Vietnam commented: "We take advantage of the global buyer network to bring Vietnamese products to international markets, from the US to Europe. AI technology helps Vietnamese suppliers easily join the platform, optimize content and process quotation requests faster. Secure transactions help Vietnamese businesses build sustainable reputation."

Mr. Vu Ba Phu - Director of the Department of Trade Promotion, Ministry of Industry and Trade commented: "Vietnamese enterprises, small and medium enterprises, and startups have every opportunity to expand and develop their business in the e-commerce environment and directly export their products under their own brands to the world market without going through intermediaries."

The Ministry of Industry and Trade said it is building a National E-commerce Development Strategy, with target programs, priority projects and accompanying financial mechanisms, to create a foundation to support businesses to participate more deeply in export activities via e-commerce.

Source: https://vtv.vn/ho-tro-doanh-nghiep-xuat-khau-qua-thuong-mai-dien-tu-100251113235913318.htm