Vietnam: eCommerce entering new stage of development

HO CHI MINH CITY: One of the engines driving the digital economy is eCommerce, and its development is becoming an essential component of the economy, experts say.

RMIT University Vietnam researchers associate professor Pham Cong Hiep and Dr Nguyen Nhat Minh said eCommerce is entering a new stage of development.

“Following the turbulent Covid-19 period, Vietnam’s eCommerce sector is now concentrating on developing and putting into practice sustainable strategies,” Hiep said.

Minh said: “Sustainable eCommerce will create a healthy business environment and provide the best services and products for users, thereby contributing to the growth of the digital economy.”

The duo said there are four areas of focus for eCommerce to develop sustainably: the business model, infrastructure, high-quality and digital-savvy human talent, and new technologies to improve customer experience.

Building a sustainable business model based on the environmental, social and governance framework would become indispensable for eCommerce firms, and would help them gain a clear vision and growth direction in the digital era, they said.

Companies should continue to enhance the value of products and services by using sustainable practices based on an in-depth understanding of consumers gained from the application of technology.

“It is equally important to develop a sustainable eCommerce eco-system to enhance core services and value offering capabilities, particularly in key areas such as supply chain and digital payment,” Hiep said.

“At the same time, firms are well advised to adopt sustainable practices in financial management to oversee, optimise and protect their assets, revenues and financial resources.”

He said investment in infrastructure has been a major focus for businesses, especially the installation and upgrade of software systems for data management and mining, automation, cloud and artificial intelligence.

“Information security is a priority to improve sustainable development in eCommerce.

“Having efficient logistics is also crucial to foster end-to-end connection throughout the supply chain and enhance customers’ shopping experience,” he added.

Logistics costs account for an estimated 10% to 20% of the final product prices, so businesses could look to cutting-edge technologies such as machine learning, artificial intelligence, the Internet of Things and blockchain to optimise costs, he said. — Viet Nam News/ANN