Re: [ksd-vn] E-COMMERCE TO BE 'IRREPLACEABLE' IN VIETNAM, SAYS CHAMBER

Dear Anh Viet Tran,

my "experience" is, that the main "problem" is the definition of
"eCommerce". There is no universally accepted one. I prefer the one that
IBM coined, since it is the most widely accepted one.

Basically, they make a difference between eBusiness, and eCommerce.
eCommerce means the transaction process via the Internet, whereas eBusiness
means using the Internet for (other) Business processes, like "normal"
communication.

eCommerce thus concerns trading of goods, services, and eBanking in a wide
sense (means transfer of money, including stock transfers).

In regard to trading eCommerce consists of:
- a legally binding offer
- a legally binding and valid order
- an order confirmation (where applicable)
- a legally valid invoice
- payment via the Internet
- delivery of goods and services via the Internet (where applicable)

Lots of websites claim to be "eCommerce" - and look what VCCI talks about.

Fact is, that most so-called Websites not even fulfill step one above.

There are a number of problems:
- Business license.
I don't think, that VDC has in its business license to trade
with all kinds of goods. Yet they claim to be doing eCommerce
and offer all kinds of consumer items. I wonder how it works.
- Mentality.
I was discussing that issue on another list.
It concerns basically what in game theory is called "Prisoner's Dilemma".
B2C will have it VERY difficult here. And even B2B's potential
is severely limited here by culture, business habits, etc.
- A large number of regulations that are completely paper based:
(Partly due to the above mentioned issue. Therefore it cannot so easily
be abolished.)
* Purchases above a certain amount need to be done via a written contract
* Merchandise on the street has to be accompanied by red invoices
* To cancel an invoice needs a cancellation note that is signed and
sealed by both parties
* ....
* Import only with import contracts.
In eCommerce, there is no paper. Thus you run into lots of hurdles
which make real eCommerce difficult to impossible.

Anyway. For publicity reasons, most people and offices in that field in
Vietnam continue to call eCommerce what is in reality only eBusiness.

>Are the current laws sufficient in Vietnam to operate the B2B models ?

The problem is not the missing laws, but the existing laws and regulations
that make eCommerce impossible. We don't need new laws, but need to abolish
or alter a good number of existing laws.

eCommerce in the West boomed in the absence of any specific eCommerce law.
It is crippled in Vietnam due to lots of existing laws and regulations.

Anyway, I gave it up. Real eCommerce in Vietnam is several years to one or
two decades (if not more) away. It is fairly pointless to discuss that.
Like in a number of other fields, Vietnam will miss the chance. But hey,
what's the problem. They will somehow survive - against all odds - like in
the past.

Cheers,
Stefan

PS: The articles and efforts of the politicians are at least always good
for a good laugh.

At 10:19 08.07.05 +0700, Viet Tran wrote:
-------------------------
>sent to ksd-vn by Viet Tran <viettran@hn.vnn.vn>
>
>Hi all,
>(I am trying to generate some healthy discussions here).
>Ecom does not mean that you have to do business and make payments over the
>Internet. This is mostly B2C.
>The most useful business model is B2B and Suppliers Market Place. In that
>model, transactions will be performed between businesses. E.g. a
>Manufacturer is selling to the distributor and then to the resellers
>through the Internet. Resellers can place orders to the distributor
>through B2B transactions. Distributors can provide fulfillment and
>warehouse management. Some resellers can also attach a B2C store to their
>site. They can do auctions and reverse auctions or call tenders (RFQ).
>Payments can be made through bank account transfers, or other usual channels.
>What B2B really means here is a wide area (Internet based) ERP for a group
>of businesses.
>Imagine that you can set up a distribution network, resellers channels,
>manage your warehouses, etc ... using the Internet. and it has no national
>boundaries. Your resellers, distributors can be anywhere in the world. Can
>we apply this model to export oriented corporations such as Rice, Tea,
>Coffee, etc ... This is a very quick way to get to the market ! There are
>ready made solutions and you can be up and running within a few months.
>Questions:
>Are the current laws sufficient in Vietnam to operate the B2B models ?
>What is holding back B2B implementations in Vietnam ? Education ?
>Technology ? Costs ? Legal ?
>Demand for ERP in Vietnam increases rapidly. Why can't B2B ? Can
>government or donors support to set up a business to Host these B2B sites
>at a very low cost to kick start the movement ?
>Does Vietnam need B2C sites now ?
>Can we use B2C model to generate more competition, improve goods
>distribution and reduce monopoly ?
>Have we done enough PR to generate demand for B2B ?
>
>Hope to receive more comments (the List has been very quiet)
>Regards
>Viet Tran