E-commerce: Promises and problems

14:35 | 27/03/2017 Information Technology

(VEN) - Online shopping is increasingly preferred by buyers because of its convenience, but still poses many potential risks.  

e commerce promises and problems

State management of e-commerce should be improved

Hanoi has set a goal for online sales revenues to account for 10 percent of the city’s total retail sales by 2020. Other targets include legal e-commerce websites that account for 20 percent of all websites registered in the city, and 70 percent of internet users in Hanoi using online shopping.

Le Hong Thang, director of the Hanoi Department of Industry and Trade, said that in 2016, the department surveyed nearly 1,000 e-commerce sites in the city out of 5,259 e-commerce websites registered for operation in Hanoi, accounting for 5.6 percent of all websites registered in the city.

E-commerce websites are obliged to register with the Ministry of Industry and Trade, but monitoring and supervising their activities poses challenges.

Talking about the problems of state management of e-commerce, Thang said that relevant authorities can only monitor online businesses handled through e-commerce websites - but not those operating on a colossal number of Fan pages and Facebook accounts.

Online transactions can easily be erased so illegal online transactions can also be erased, making supervision virtually impossible, he said.

In order to improve the efficiency of state management of e-commerce, Thang said his department would continue to provide law training courses and workshops for representatives of management agencies, business associations and enterprises operating in the field of e-commerce, while continuing online monitoring and directing market management forces to strengthen inspection and control in this area.

The Online Friday 2016 event on September 30, 2016 reflected the flourishing e-commerce and potential. The program was organized by the Ministry of Industry and Trade and the Vietnam e-Commerce and Information Technology Agency (VECITA) in coordination with the Vietnam E-commerce Association (VECOM), VnExpress and FPT Online.

According to VECITA, on that first day, more than five million people visited the program’s website OnlineFriday.vn, while businesses participating in the event earned total estimated revenue of VND203 billion through 160,000 orders. The program’s main event was held on December 2, 2016 and within 24 hours, more than 540,000 transactions were carried out, bringing in total revenues of over VND644 billion, triple that of Online Friday 2015.

As of late 2016, 5,259 e-commerce websites were registered for operation in Hanoi. E-commerce handled through these

websites yielded total revenue of an estimated VND30.1 trillion in 2016.

Nguyen Hanh