Synchronized development
In implementing Decision No. 411/QD-TTg on the National Strategy for the Development of the Digital Economy and Digital Society, the Department of Industry and Trade has focused on directing and supporting the listing of distinctive products, OCOP products, and rural industrial products on e-commerce platforms; providing training and financial support for website development and the creation of online stores on trading platforms; deploying the Market 4.0 model; promoting cashless payments; and inviting units and businesses to participate in reputable international trading platforms such as Amazon and Alibaba.
After a 5-month pilot implementation of the Market 4.0 model at 6 markets: Vinh Market, Giát Market, Đô Lương Market, Vinh Train Station Market, Hôm Market, and Tân Thành Market, initial results have been promising, with over 1,300 traders participating, 4,000 transactions, and a total exchange of over 12 billion VND. Based on these results, the Department of Industry and Trade has directed Viettel Nghe An and related units to expand the Market 4.0 model to areas outside the markets (commercial centers, residential areas, major shopping streets, etc.).
To develop the digital economy, along with focusing on developing digital infrastructure and developing human resources for digital transformation, the Department of Industry and Trade proactively supports bringing Nghe An products onto the e-commerce platform. By October 31, 2023, the Nghe An E-commerce Exchange had supported more than 473 businesses and traders in registering as members and setting up online stores; attracted over 9.3 million visits; and introduced and offered for sale 3,723 products and services.
Besides the exchange managed by the Department of Industry and Trade, there are many other effective exchanges operating in the province, attracting many businesses and consumers, such as: chovinh.com of Golden City Joint Stock Company, chonhadatvinh.com of Gruu Software Joint Stock Company, etc.
As of October 31, 2023, the total number of businesses, cooperatives, craft villages, and agricultural production households in Nghe An province listed on online marketplaces was 266,373, with 8,836 products, ranking 5th nationwide in terms of the number of agricultural products listed. Of these, over 95% of Nghe An province's OCOP products have been listed on these marketplaces.
Several typical OCOP and rural industrial products have been listed on the market, such as: rattan and bamboo products of Duc Phong Co., Ltd.; Gynostemma pentaphyllum tea bags, Gymnema sylvestre tea bags, and Gynura procumbens tea bags from Pu Mat Medicinal Herbs Joint Stock Company; and multi-purpose bamboo tubes from Tra Lan Cooperative (Con Cuong)...
Beyond participating in online marketplaces or using their own websites to promote and introduce products, many businesses and production and trading entities in the area have leveraged the advantages of social media platforms such as Facebook, TikTok, and Zalo to promote, interact with, and sell their products and services. This is the most practical and effective solution to integrate digitalization into people's lives, thereby promoting the development of diverse forms of trade. The application of e-commerce is increasing rapidly. Several services such as entertainment, training, remote health care consultation, online learning, exam score lookup, etc., have yielded clear results and met people's needs in daily life. Non-cash payment methods are also widely implemented by banks, reaching even small businesses and households, creating opportunities for consumers to experience and access modern payment methods, stimulating shopping activity.
According to the latest report from the Ministry of Industry and Trade, estimated e-commerce retail sales in 2023 will reach US$20.5 billion, accounting for approximately 7.8-8% of the total retail sales of goods and consumer services nationwide. Given Nghe An's e-commerce ranking in 2023, the proportion of e-commerce revenue in Nghe An's total retail sales is projected to reach 7.5-8%.
Businesses need to be more proactive.
E-commerce and the digital economy in Nghe An have made significant strides, with Nghe An's e-commerce ranking consistently among the top in the country for many years. Recently, at the "Vietnam E-commerce Overview 2023" forum held in Ho Chi Minh City, Nghe An ranked first in the North Central region and 14th nationwide (up one place compared to 2022).
However, according to the Department of Industry and Trade's assessment, a segment of businesses and individuals still lack the ability to utilize the Internet, making this one of the biggest difficulties and obstacles in deploying e-commerce applications and online public services. Not many businesses and products from Nghe An have been promoted and sold on large, reputable domestic and international trading platforms due to the high participation standards and technical barriers of these platforms.
Although local products are diverse and abundant, their production volume, packaging designs, and labeling are still limited compared to similar products from other localities, as well as their adherence to food safety and hygiene standards. OCOP products, agricultural products, and fresh seafood produced by local people often have short shelf lives and are not allowed to be listed on the platform.
On the other hand, small businesses and agricultural cooperatives lack technical staff to manage online platforms and interact with buyers during inquiries or order processing, which is a major challenge. It is estimated that Nghe An currently has over 1,800 websites built by businesses, but these mainly provide information on products and services, prices, etc. Businesses have not yet integrated online payment systems or allocated sufficient personnel to regularly interact with customers, thus failing to maximize their potential. Some local products have been initially listed on these platforms, but transaction volumes remain limited.
Cashless payments are becoming increasingly popular, but are mainly concentrated in urban areas and district centers. The illegal collection, use, dissemination, and trading of personal information continues, and spam and fraudulent messages remain widespread.
Meanwhile, state management still faces shortcomings: Controlling the origin, quality, and price of goods traded through e-commerce, especially managing tax evasion in online business activities, remains challenging. Multi-level marketing schemes disguised as e-commerce and cryptocurrencies, using various tricks and tactics, have infiltrated every corner of the country, becoming increasingly sophisticated and causing significant losses to many unsuspecting organizations and individuals who invest in them.
Mr. Cao Minh Tu, Deputy Director of the Department of Industry and Trade, stated: Businesses are the core force in implementing e-commerce, while the State plays a role in managing, establishing infrastructure, and creating a development environment. Therefore, in the coming period, to achieve the goal of developing e-commerce in Nghe An province for the 2021-2025 period, in addition to the support of state agencies, businesses need to be more proactive. Businesses need to proactively manage all stages from product research, business plan development, legal procedures, logistics, marketing… and further optimize sales on international e-commerce platforms.
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