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E-commerce goes Offline ?! 21/08/2015

In developed countries, technology applications are focused to develop

online E-commerce; meanwhile in Vietnam, enterprises try to find

offline solutions besides online ones to meet customers’ needs. COD

(Cash On Delivery) and Point of Sale (POS) are two of those offline

solutions of E-commerce companies.

The reason for it is because not many Vietnamese people have credit

cards or if they have one, they are afraid of frauds and personal

information being stolen. Besides, The majority of Vietnamese

consumers prefer to see the product before paying for it.

Therefore, in order to develop online payment, every enterprise needs

to earn customers’ trust by making sure that the payment process is

swift and secured; goods must be of satisfactory quality and delivery

must be on time.

From E-commerce to M-commerce. 06/08/2015

A report carried out by the Ministry of Industry and Trade shows that the

Vietnamese market had great potential for developing mobile e-

commerce. With a growing number of users accessing to the internet on

mobile devices, it is expected to boom this year.

E-commerce has played an important role in businesses' activities during

recent years. Viet Nam is entering a "golden period" for e-commerce

development, based on the mobile phone sector.

The habit of using smartphones is replacing PC or laptops, leading to the

development of mobile e-commerce. And the rapid development of e-

commerce in Viet Nam, especially on mobile devices, has forced policy

makers to revamp their thoughts and management models to create a

sustainable foundation for its growth. Solutions should be developed for

the use of technologies and trade practices to help users access such

new technologies.

COD (Cash On Delivery) is the greatest hindrance of E-Commerce. 20/05/2015

Like other emerging markets, Vietnam is on the cusp of a shift from

traditional retail to e-commerce, but consumers’ preference for cash

over credit cards may hamper growth in E-commerce.

Vietnamese preferable payment is cash due to the fact that most of

the people are unbanked citizens, or even if they have credit cards,

they still choose COD as a method of payment when online shopping.

Low trust in dealing with online purchasing is one of the issues that

make people prefer COD than online payment.

COD is a less efficient model than online payment because of the

expenses involved in physically collecting cash, higher rejection rates

and longer turnaround time to receive money. It also locks up working

capital and increases risk exposure. That’s the greatest hindrance of e-

commerce companies.

Motorcycles, bicycles are slowing down the development of E-commerce in Vietnam. 23/08/2015

Most of Vietnamese people prefer choosing motorbikes and bicycles to

go shopping or buy groceries as a traditional channel of Vietnamese

shoppers. Shoppers still have a habit of browsing websites online

looking for the cheapest store then going directly to the store instead of

purchasing online.

Many e-commerce companies have to spend a lot of money for

advertisement and promotional programs to earn trust from customers

as well as to encourage people to shop online instead of going to stores

by motorbikes.

‘Meet Magento’ in Vietnam. 24/08/2015

Supported by Magento Inc, Meet Magento, which has taken place in

more than 16 countries all over the world since 2009, is a forum for

enthusiasts of eCommerce platform Magento, merchants and service

providers to get independent information about Magento and e-

commerce and build mutually-beneficial relationships. This is the first

time the event is held in Vietnam as well as in Asia.

eCommerce platform Magento, which debuted in 2008, is used by 25

per cent of online businesses worldwide and boasts over $25 billion in

transaction volume each year. Vietnam, which has a population of

about 90 million, one third of which access the Internet regularly, is

considered a very potential market for eCommerce.

By the end of 2015, Magento platform will officially have the

Vietnamese language supported for E-commerce companies. In 2016,

Magento version 2 will be updated with more attractive features.

Google introduces cloud platform to Vietnamese start-ups. 26/08/2015

Google and Gimasys introduced the Google Cloud Platform to

Vietnamese start-ups on August 26, especially those operating in e-

commerce. At the seminar, representatives from Google introduced

the Google Cloud Platform and Big Data to participants, saying that

many start-ups had applied Google Cloud Platforms and developed

rapidly. The notable feature of the Google Cloud Platform is

scalability, which means ‘use as per demand and pay as you use'. This

feature is very advantageous to e-commerce start-ups, helping them

to serve customers better.

During the recent years, Google and VINCOM actively implemented

different seminars and events aimed at supporting Vietnamese

companies applying technology applications in their business through

Google cloud platform with many features such as: Computing,

Storage, Networking, Big Data, etc.

The official announcement of Online Friday 2015 16/07/2015

‘Online Friday 2015’ will be on Friday, December 4, 2015, and will

address hot issues in e-commerce as Start-up investment, the

construction of confidence of consumers with online purchase, the

appliance of e-commerce in mobile platform, digital tourism…

In order to promote e-commerce in mobile platform, improve the

benefit of purchasing for consumers and expand opportunities of brand

promotion for enterprises, this year will have Autumn Online Shopping

Day on Friday August 28, 2015.

The target of this event is bringing the high quality promotions

including real and deep discount; trustworthy support services with

free delivery, and delivery on time; simple and easy payment service

with utilities of bank. This year all websites selling products in website

Online Friday, must already registered with MOIT to protect the right of

consumers and the credibility of enterprises.

ASEAN ECOMMERCE CHALLENGES August 03, 2015

The drivers of ecommerce in ASEAN are a growing middle class, higher

smartphone and internet penetration, growing number of ecommerce

players, more logistics options, and alternative payment methods.

However, there are key challenges that an ecommerce player is likely to

face – managing customer expectations and perception related to speed

and reliability of delivery and online payment fraud, cross-border issues

related to custom duties, taxes, logistics and corruption, lack of low cost and reliable logistics infrastructure

designed for ecommerce, and each country’s own regulations related to ecommerce and foreign ownership.

Also, there are certain commonalities in the emerging ASEAN countries. Most ecommerce payments are based on

cash on delivery, a large percentage of orders come from outside of the capital cities, and a lot of discovery

happens on social and messaging platforms. [Read more in EN]

CHINA, ASEAN EXPLORES COOPERATION IN E-COMMERCE September 07, 2015

China and ASEAN countries will explore cooperation in e-commerce

during the 12th China-ASEAN Expo lasting from Sept 18 to 21 in Nanning,

capital of Guangxi Zhuang Autonomous Region.

More than 500 political and business leaders as well as experts from

China and 10 ASEAN countries will join the China-ASEAN e-commerce

summit, scheduled from Sept. 18 to 19, on the sidelines of the expo.

Executives from China's e-commerce giants including Alibaba and JD.com

are also expected to make an appearance.

The summit will center around four topics -- "China, ASEAN Internet plus

new economy", "China, ASEAN cross-border e-commerce new base",

"Prospect of China, ASEAN economic and trade information sharing harbor", and "New opportunities of China,

ASEAN innovation and business startups". A cooperation memorandum regarding the construction of China-

ASEAN cross-border e-commerce platforms is also expected to be signed during the summit. [Read more in EN]

SOUTHEAST ASIAN CONSUMERS SWITCH TO E-COMMERCE August 06, 2015

Economies across Southeast Asian countries have managed to show

weaker growth this year but not e-commerce. In fact, SE Asian consumers

are showing strong signs of switching to e-commerce.

Growing numbers of online consumers inspire various startup e-

commerce groups in Southeast Asia and various International information

technology companies are also joining the field. [Read more in EN]

The online retail market in the

“big six” ASEAN nations –

Singapore, Indonesia, Malaysia,

the Philippines, Vietnam, and

Thailand – is currently worth

around US$7 billion.

UBER TO BECOME AN E-COMMERCE GROUP IN INDONESIA August 03, 2015

Uber, the ride-hailing app, is coming to Indonesia as an e-commerce

group in an attempt to sidestep the regulation and taxes rival taxi

operators. The company announced this plan.

According to Alan Jiang, the acting country head of Uber, the company is

submitting an application to Indonesia's Investment Coordinating Board

for their desire to establish the business as a foreign-owned entity that

will be registered as an "Internet portal".

Currently, Uber operates in a regulatory grey area in Indonesia and

working through representative office in Jakarta. With this move of

establishing their company as e-commerce group, the company would sidestep demands that it must register for a

taxi license, which would make them comply with the same rules on taxation and tariffs faced by other local taxi

operators. Whether or not they are running away from legal actions, Uber is definitely one potential big player to

enter the e-commerce industry in Indonesia. [Read more in EN]

5 ECOMMERCE TRENDS THAT ARE SURE TO BOOM IN INDONESIA September 04, 2015

Thanks to its 250 million population, anyone who is able to win the

e-commerce game in Indonesia has already conquered 40 percent

of Southeast Asia. This makes it the ideal spot to start an e-

commerce empire. Here are upcoming e-commerce trends that will

dictate where the market will be in the next few years:

1. Merchants selling in multiple online channels seamlessly.

It’s pretty tough to use all the available options to sell online in Indonesia.

Merchants who use multiple channels in Indonesia have to keep a very

close eye on their inventories and SKUs. They also need to deal with

incoming messages on different platforms. In the end, merchants need to

prioritize the channels which work best for them, and shut down all the

others.

2. More ways for shoppers to get the lowest prices.

Thanks to the internet, there are many ways shoppers in Indonesia can find the best online deals out there. They can use

price comparison platforms then take up the lowest price guarantees offered by major e-shops. Indonesian players would be

wise to pay attention to such innovative solutions offered abroad, and find ways to adopt them for the local market.

3. Logistics services 2.0

Indonesians one day will be pampered with a slew of logistics options and technology. Sellers will no longer need to queue in

long lines just to send that product, but to wait for pickups at designated places instead such. Logistics services will have an

adequate back-end system which integrates with various e-shops. Buyers will be able to have more options for same day-

delivery services.

4. Rapid mobile money adoption

Indonesia will become the second biggest mobile money user in the world. Much of this claim stems from how the

government plans to distribute direct cash subsidies to underprivileged people via electronic money. If all goes according to

plan, about 15 million underprivileged people in Indonesia will have adopted e-money by the end of this year.

5. Merchants selling anonymously

Indonesian internet users has risen to

150% a year over the past decade to

reach 90 million. This figure is expected

to reach 150 million by 2019.

There will come a time when someone tries to provide such a platform, where merchants can sell products at whatever price

they wish, anonymously in a private ecosystem. In return, buyers will also get the best possible deals as merchants no longer

hesitate to offer lower price tags. Naturally, the platform will need to handpick all the merchants who get to be anonymous in

order to guarantee all listings are legitimate. [Read more in EN]

THAILAND HEADS EBAY IN SOUTHEAST ASIA

July 24, 2015

Thailand remains at its position as eBay's largest market in Southeast Asia

all thanks to the support to various Thai products and appreciation of the

US dollar, according to eBay Thailand. eBay has established its presence in

Thailand in 2009. And according to the Marketing team, Thailand is eBay's

largest online retailer in Southeast Asia in terms of sellers and trade value.

Ekachai Rukachantarakul, head of eBay Marketing Thailand, said that they

are encouraging Thai small and medium exporters to use the marketplace

to expand export opportunities. eBay Thailand would join forces with

other successful retailers to encourage other companies to use its marketplace. 13% of Thai retailers joining eBay's

marketplace could generate sales revenue of $10,000a year. [Read more in EN]

Philippines smartphone

penetration is expected to more

than triple to 50 percent by 2015.

PHILIPPINES, WITH 100M POPULATION, SEEN PERFECT FOR ONLINE COMMERCE September 6, 2015

For the Philippines, online business booms because of the big market

coupled with people seeking to avoid the horrendous daily city traffic

when they go out of their homes to buy their choices for bags, shoes,

shorts, slippers and even lipstick.

The trend where people can buy anything they want without leaving will

continue to thrive given that traffic and lack of public transport vehicles are expected to worsen.

Being a tech savvy nation, the Philippines is haven for online shopping/trading. The surge in cellphone users, in

recent years only proves that a lot of Filipinos spend more time browsing the net via their cell phones than

actually go to mall to choose their favorite clothes.

The Philippines has 100 million population. The rate of increasing cell phone users is faster than the rate of

population. That’s why many online business are now here people can enjoy it anytime they want, no limit after

all. [Read more in EN]

VIETNAM: E-COMMERCE GROWING ON MOBILE PLATFORM September 04, 2015

At a recent workshop on e-commerce apps for mobile phones held in Ho

Chi Minh City, Mr. Tran Huu Linh, Director of the Vietnam E-commerce and

Information Technology Agency (VECITA) under the Ministry of Industry and

Trade said that e-commerce is thriving with the rise of digital technology.

“The e-commerce model is no longer limited to computer platforms but is

developing strongly on the mobile phone platform as well,” he said. “This

will be the main trend for e-commerce over the next five years.”

A VECITA report pointed out that 34 per cent of Vietnam’s population, or

more than 30 million people, now access the internet on their mobile

phone. One-third of the spent time online is on a mobile phone. All

transactions, from procurement and payment to information exchange, are

being conducted on mobile phones. E-commerce enterprises are therefore

actively transferring from the computer to the mobile platform to stay abreast of consumer trends. [Read more in

EN]

34% of Vietnam’s population,

or more than 30 million

people, now access the

internet on their mobile

phone.

ALIBABA LAUNCHES NEW DATA CENTRE IN SINGAPORE August 06, 2015

After investing millions in SingPost, Alibaba, China's largest e-commerce

market, is now introducing a new data centre in Singapore that will give e-

commerce in Southeast Asia a further push.

Alibaba made announcement last August 19 regarding the major new

cloud data centre and a 'headquarters of international business' in

Singapore. This is a follow-up investment in SingPost, an investment worth

US$456 Million.

Alibaba's data centres power its own services as well as third-party clients and because of this, the cloud centre

can be considered a giant, giving a warning and signs that Alibaba has even greater e-commerce ambitions for

Southeast Asia than its original intent. [Read more in EN]

SINGAPORE: RIDING HIGH ON THE E-COMMERCE WAVE September 03, 2015

Singapore is riding high on the global online shopping wave, with e-commerce sales hitting US$3 billion (S$4.2

billion) last year, according to statistics from PayPal. But e-commerce retailers are not the only ones reaping the

rewards. Associated industries such as software and logistics are seeing a corresponding surge in business as well.

For example, from 2009 to 2013, the number of logistics establishments grew from 7,169 to 7,606, according to

Spring Singapore. As a result, many companies have sprung up in such sectors or re-oriented themselves to take

advantage of the market opportunities. [Read more in EN]

MALAYSIA’S E-COMMERCE LANDSCAPE HEADING TOWARDS MATURITY September 01, 2015

The e-commerce market landscape in Malaysia has evolved over the last

five years with a more matured infrastructure such as payment systems

and Internet penetration today to support its continued growth. However,

the Malaysian e-commerce market is still very much in its infancy stage

considering its potentials and will continue to grow.

Malaysian e-commerce market accounts for just two per cent of total

retail market which is considerably low comparing to many other

advanced e-commerce markets (such as Korea with approximately 15 per cent of ecommerce penetration rate).

Malaysian e-commerce market will grow by more than 700 per cent in the next five to 10 years. To facilitate this

growth, it is very important for e-commerce service providers to offer training and development programs to

support local sellers in starting online business. [Read more]

OOREDOO-BACKED E-COMMERCE FIRM EXPANDING IN MYANMAR September 3, 2015

Myanmar is one central focus country for German e-commerce

incubator Rocket Internet, which cooperates with Qatar’s telecom

giant Ooredoo in launching Internet businesses throughout Asia.

The two companies, via their joint venture Asia Pacific Internet

Group, have already successfully set up no fewer than six e-

commerce startups in the country.

The many new Internet ventures by Asia Pacific Internet Group in

Myanmar are built upon the expectation that e-commerce is about

to experience a massive boom in the country which is just in an

early cycle of “getting connected” after it opened up to the outside

world only a few years ago when there was literally no Internet or

mobile data infrastructure, at least for the common people.

While currently still not more than approximately 5% of the 53

million-population are online and prospects for e-commerce seem

to look tough, this rate is expected to go through the roof once

firms such as Ooredoo will have rolled out their mobile broadband

network and provide the necessary infrastructure. [Read more]

97% of Myanmar’s population will

have access to the company’s 3G

network by 2018.

38 million internet users in

Myanmar as early as by 2016.

CAMBODIA SEEING E-COMMERCE GROW DUE TO MORE ACCESS TO INTERNET August 9, 2015

Investors have turned their eyes to the e-commerce sector in Cambodia

as more people in the Southeast Asian nation have access to the

Internet, businessmen and commerce officials say.

Cheat Thilong, a marketing officer with a Phnom Penh-based shopping

website Shop168, which was launched more than two years ago, said e-

commerce outlets are mushrooming here due to the increasing

numbers of Internet users. "Two years ago, there were only a few

business-to-customer (B2C) shopping websites in Cambodia, but now

the number has reached almost 20," he said.

According to Sear Rithy, chairman of Worldbridge International Group

(WIG), the development of online shopping platforms still have a way to

go here because most Cambodian people do not trust the online

outlets, they worry that the companies will provide them products that

don't reflect what they want.

Speaking about tax payment for online products, he said because there

is currently no e-commerce law, both online and offline products are treated in the same way and taxes at that

the same level are required to be paid. Cambodia is working to develop an e-commerce system, but a time frame

for completing this work is still unknown because it is a new approach of business for Cambodia. [Read more in

EN]

5 million of the nearly 15-million

population in Cambodia have

obtained access to the Internet as

of 2014, most of whom get online

via smart phones.