Vietnamese SMBs take advantage of online business trend to enhance competitiveness

22:26 | 24/02/2017 Information Technology

(VEN) - E-commerce with multi-channel selling has become a popular method in the world which helps small and medium sized businesses (SMBs) optimize their operations. Online retail in Vietnam will continue to accelerate in the upcoming period as domestic and foreign retailers now move towards multichannel with considerable investment in online retail.

This is the statement of Mr. Nguyen Ngoc Dung, Vice President of the Vietnam E-commerce Association (VECOM) at the Vietnam Online Business Forum 2017 (VOBF) in Hanoi February 24. This nationwide event is firstly introduced in Vietnam and expected to be held for e-commerce community in Vietnam annually.

vietnamese smbs take advantage of online business trend to enhance competitiveness
Mr. Nguyen Ngoc Dung, Vice President of the Vietnam E-commerce Association (VECOM)

Vietnam, with over 54% of internet penetration and a large number of smart device users, is considered a potential market for e-commerce development. Vietnam B2C e-commerce retail sale in 2016 reached US$5 billion, accounting for 3% of the country’s total retail products and consumer. In the next 5 years, it is predicted to grow in two digit figure. This is a significant potential for Vietnam’s retail sector. Especially, in order to boost e-commerce growth, Prime Minister has approved the master plan for e-commerce development in the period of 2016-2020. Accordingly, by 2020, e-commerce retail sale is targeted to reach US$10 billion, accounting for 50% of the country’s total retail sale.

However, difficulties are still present on our way to boost e-commerce and enhance the development of Vietnam’s retail industry. In the meantime, businesses need to unify their information in both real and cyber worlds in order to gain consumers’ trust which will then encourages consumer buying behavior.

According to Nielsen’s Global Trust in Advertising 2015, Vietnamese consumers place most confidence in advertisements on search metrics, and then social networks, online video and banners. In order to raise businesses’ awareness of the importance of building an online presence and conducting online marketing, prestigious experts representing for world’s big names such as Google, Nielsen, Facebook, Vietnam Post, Alibaba, Mat Bao, Verisign, etc. have been invited to the Forum to share their expertise and guidelines in this field.

At the Forum, many experts have agreed that it is essential for every small business to have their own website. Given the ease of building a website these days, it’s possible for a business to build a high-quality website to showcase business, and to establish their brand in a form they can control. 77% of small businesses agree that websites is the most effective online marketing tool for creating awareness and strengthening customer relationships, more than any other online marketing tool.

vietnamese smbs take advantage of online business trend to enhance competitiveness

Mr. Le Hai Binh, President of Mat Bao

“The most effective way to do business online is to have a website and social media presence that work together to spread your message and foster relationships with the broadest customer audience. The first step towards building a successful and credible online presence is to choose the right domain name,” shared Mr. Dung at the event.

By using trusted domain extensions, there is a level of credibility awarded to these businesses. Considered the global standard for doing business online, numerous global enterprises, including Fortune 500 companies, have chosen .com to build their websites with the desire of extending beyond the local audience. Additionally, with the operational accuracy and stability of the .com DNS infrastructure for more than 18 years and over 127,5 million domain names registered globally, businesses are encouraged to choose .com to be the basis of their online presence,” said Mr. Le Hai Binh, President of Mat Bao.

Phuong Vu