16:31 | 17/06/2017 Society
(VEN) - Vietnam is increasing its efforts to join the supply chain connectivity network, while initiating the establishment of a framework for e-commerce facilitation.
Strengthening supply chain connection
Representatives of Asian-Pacific nations met in Hanoi on May 19 for the third Public-Private Dialogue on Advancing Trade Facilitation and Supply Chain Connectivity throughthe Asia-Pacific Model E-port Network (APMEN). Dialogue participants discussed how to make APMEN facilitate trade through trial projects and cooperation.
APMEN, created at the 24th APEC Economic Leaders’ Meeting in November 2014 in Beijing, aims to form a regional trade and supply chain network. The initiative focuses on identifying measures to increase transparency of supply chains through information technology and communications systems.
Deputy Minister of Industry and Trade Ho Thi Kim Thoa told the dialogue that the initiative contributes to enhancing supply and value chain connectivity among the 21-nation Asia-Pacific Economic Cooperation forum, one of its most important pillars.
Regional and international integration is deepening, leading to increasing mutual reliance among businesses in terms of production and services under the same supply chain. “Developing effective supply chains plays a particularly important role in international trade, helping reduce the information imbalance among phases, reduce transaction costs, increase information connectivity between phases and related parties, and improve consumer satisfaction in order to make the most of the interests,” said Thoa.
Dialogue participants agreed that increasing information, experience sharing and policy consultation play a key role in the regional cooperation process.
|Trade facilitation has provided opportunities for businesses to increase their exports|
The Asia-Pacific Economic Cooperation (APEC) Forum was established in a bid to promote sustainable economic growth and prosperity in the Asia-Pacific region. APEC leaders have realized the important role of e-commerce in building competitiveness of medium, small and micro-sized enterprises, boosting sustainable growth and fostering regional economic connectivity.
Vietnam recently proposed that APEC build an e-commerce facilitation framework, which is one of the highlights of the 2017 APEC meetings it is hosting and is expected to contribute to promoting trade facilitation and investment and to become an engine for regional economic development.
According to the Ministry of Industry and Trade’s E-commerce and Information Technology Agency, global business to customer (B2C) e-commerce revenues reached US$1.9 trillion in 2016, of which US$1 trillion came from the Asia-Pacific region. B2C e-commerce revenues accounted for 12.1 percent of total retail in the region, recording the highest rate in the world.
Cross-border e-commerce is seen as the fastest growing sector in world commerce. From almost none two decades ago, global cross-border e-commerce revenue was estimated at US$1.92 trillion at the end of 2016. The Asia-Pacific region has recorded the largest transaction volume in the world, followed by Western Europe and North America. B2C cross-border e-commerce revenue was US$144 billion in Asia-Pacific, representing 35.9 percent of the global B2C value in 2016. The figures are expected to increase to US$467 billion and 47.9 percent, respectively, by 2020.
Accordingly, Vietnam’s initiative on the building of an e-commerce facilitation framework focuses on five pillars. These include(1) finalizing and harmonizing legal frameworks on e-commerce in APEC member economies, (2) strengthening capacity-building to enable APEC economies to support micro-, small- and medium-sized enterprises to join the trans-border e-commerce market in the region and around the world, (3) promoting cross-border protection of individual data via the implementation of APEC’s current programs, (4) facilitating non-paper trade in the region, and (5) dealing with newly arising issues in cross-border e-commerce.
Boosting trade liberalization and facilitation among the 21-member APEC forum has provided ample opportunities for
Vietnamese businesses, particularly medium and small-sized enterprises, to seek partnerships and boost exports to domestic
and regional markets.