Hanoi promotes e-commerce development

Strengthening e-commerce

Tran Thi Phuong Lan, deputy director of the Hanoi Department of Industry and Trade, said the city’s trade and services have grown tremendously, drawing foreign investors to its retail market. Modern forms of trade such as e-commerce and vending machines have developed rapidly.

Hanoi’s e-commerce revenues increased by 25 percent in 2017 and 30 percent in the first nine months of 2018 compared to a year ago. There are now more than 8,700 websites and e-commerce applications registered in the city, including 300 e-commerce trading floors. Hanoi has also put into operation a website on shopping in the city at http://bandomuasam.hanoi.gov.vn where users can easily search for prestigious shopping venues, consumer goods and food shops, and the location of vending machines in the capital city.

Hanoi has put together information on e-payment, e-signature, e-authentication and information security measures; implemented programs and solutions to build online trade names for goods and services; and provided online sales solutions for small- and medium-sized enterprises and trade villages.

Vending machine system

Tran Thi Phuong Lan said that in late 2016, Hanoi installed seven drink vending machines, each of which sells 300 products kept below five degrees Celsius. According to the VVM Investment and Trading Joint Stock Company, vending machines now average about VND70 million in sales per machine per month. After two years of operation around the city’s focal point at Hoan Kiem Lake, vending machines have replaced some street vendors.

Vending machines have become familiar to residents and visitors as they like the machines and the method of selling. In addition, vending machines in Vietnam accept notes, bringing convenience for consumers.

The capital city plans to install 1,000 vending machines by 2020 to make shopping more convenient for local consumers as well as foreign tourists. The machines will be located mostly at hospitals, schools, bus stations, passenger waiting rooms, historic and cultural sites, tourist attractions and parks, according to Decision 3672/QD-UBND on developing a vending machine network, issued recently by the municipal people’s committee.

Promoting online exports

E-commerce also helps businesses overcome communication problems with foreign suppliers and customers and be more active in introducing their products to partners. This method of trading is very effective, making it easy for businesses to seek buyers, save time and reduce transaction costs. According to the Vietnam E-business Index 2017 report conducted by the Vietnam E-commerce Association (VECOM), online exports have helped businesses save 30 percent of time and minimize errors.

“In the first nine months of 2018, Hanoi’s export turnover increased by 19 percent compared to a year ago thanks to significant contributions of online export activities,” Lan said.

However, e-commerce businesses face many difficulties due to poor logistics and consumer price sensitivity. In addition, buyers hesitate to use online payment tools.

To overcome difficulties, Hanoi will take measures to intensify the use of e-commerce, with a focus on the use of non-cash payments and electronic payment modes.