Many opportunities for trade on digital platforms in Vietnam

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Vietnam can seize trade opportunities on digital platforms. Source: Internet.

Prospect of 953,000 billion VND in 2030

Quoted from the report, "Data revolution: How Vietnam can seize trade opportunities on a digital basis in and outside the country?" Konstantin Matthies, representative of AlphaBeta Company, said in Vietnam digital-based trade created economic value for the domestic economy of up to 81,000 billion VND in 2017, and the potential can increase to 953,000 billion VND by 2030. In addition, the value of digital exports also brought 97,000 billion VND; the potential for digital trading is expected to increase by 570% by 2030 with a value of 652,000 billion VND.

A representative of AlphaBeta Company said that sustainable global trade will create positive cohesion between people and countries, and support sustainable economic development.

To develop digital-based commerce, Konstantin Matthies said that Vietnam should take action in three important areas to address digital trade concerns.

One is to ensure open data flow and interoperability. Specifically, it is necessary to ensure clarity regarding the type of data to be shared, sharing boundaries and user approval forms required to encourage interoperability between digital base frameworks. Secondly, the content restrictions need to be reviewed. Third is to minimize obstacles at the border.

Speaking at the seminar, Mr. Nguyen Dinh Cung, Director of CIEM said, Vietnam has been gaining significant value from trade on digital platforms, but this value may be much higher in the future.

"The value of digital flows for creating economic value for the domestic economy will be through support for the application of digital technologies," said Mr. Nguyen Dinh Cung.

3 challenges for digital trade

At the seminar, economic expert Pham Chi Lan mentioned three aspects that are challenges for Vietnam's digital trade today.

First of all is the data problem. Accordingly, Vietnam only has a requirement for data system formation. However, Mrs. Lan said that with a city of 10 million people like Hanoi, it is difficult for the country to establish a data system. "Our information is currently lacking, statistics are not timely and transparent due to lack of openness," Mrs. Pham Chi Lan said.

According to expert Pham Chi Lan, there is a story of hidden information in Vietnam. For example, businesses may have 2-3 types of accounting books, 1 for business, 1 for shareholders, and 1 for the State to calculate taxes. Therefore, it is not easy to have a standard data system for policy making.

Secondly, in terms of law, since 2015, the State has issued a series of regulations from laws to decrees, on high technology development, industrial revolution 4.0, startups to promote enterprises to develop technology and promote labor productivity. “But the problem lies in the fact that the new regulation is not transparent enough, not consistent between this document and other documents, so it is uncertain and unfeasible. There are good regulations to support businesses with the formations of support funds... but businesses have difficultly accessing them. E-commerce in Vietnam still has many embarrassing businesses due to problems in electronic payment, electronic signatures...," Mrs. Lan said.

The third is difficulties due to business practices and business culture. Vietnamese enterprises are weak because they are mainly SMEs, there are many limitations such as scale, wholesale trade and retail with many scattered products, lack of necessary expertise, management... and inter-industry between industries is still weak...

However, in addition to challenges, expert Pham Chi Lan says it also offers great opportunities for Vietnam to have access to digital commerce and the digital economy in general. In particular, the growth model innovation factor is one of the great opportunities.

Vietnamese life insurance sector going online Prudential Manulife and FWD were among the first insurance firms to transfer insurance transactions to digital platforms ...

Ms. Lan said, recently, she and the Consultative Group of the Prime Minister, the World Bank presented ideas and had a relatively high consensus that the future growth model of Vietnam should be rely on labor productivity, so accordingly, labor productivity increases will be based on human quality, technology and institutions.