Vietnam Academy Of Social Sciences

Workshop on “E–commerce and operations of SMEs in Vietnam”

11/11/2015

In the morning of October 29th 2015, Institute of Regional Sustainable Development of VASS has worked with Vietnam E – commerce Association and Centre Institute for Economic Management to organize a workshop to release the research result on “Internet, e–commerce and operations of SMEs in Vietnam” at the Head Office of VASS (Ba Dinh, Hanoi). The research is supported by Google Asia Pacific.

Attending at the workshop has Associate Prof. Dr. Bui Quang Tuan – Director of IRSD, Dr. Nguyen Dinh Chuc – Deputy Director of IRSD, Associate Prof. Dr. Tran Kim Chung – Deputy Director of CIEM, Mr. Alex Long -  Google Asia Pacific for Public Policy and Government Relations, Mr. Nguyen Huu Tuan – Head of E – commerce operation management department, Vietnam e-commerce and Information Technology Agency, Mr. Nguyen Thanh Hung – General Secretary of VECME and officials from ministries, industries including Ministry of Industry and Trade, Ministry of Information and Communications, Ministry of Sciences and Technology, Ministry of Planning and Investment, Ministry of Finance, Vietnam Internet Network Information Center and representatives of VASS.

Right to left) Associate Prof. Dr. Bui Quang Tuan and<br>Associate Prof. Dr. Tran Kim Chung hosting the workshop   Overview of the workshop

Facing with the significant changes of international circumstances and the wider and deeper globalization, the birth of a series of new FTA (free trade agreement) has created opportunities and challenges for Vietnam, especially when this country is enhancing the integration, changing the growth model which focus on efficiency, competitive ability to promote the social resources and the role of enterprises in which the SMEs are the key sources.  The report on “Internet, e – commerce and operations of SMEs in Vietnam” is significantly meaningful when the cross – border collaboration is getting more and more popular, in larger scope through modern connecting methods. And, the more competitive, the more significant role SMEs play. This research aims to improve the understanding about the reality of e – commerce and Internet and their impacts on SMEs’ operations.

Dr. Nguyen Dinh Chuc presenting research result at the workshop

The research report includes the following major parts: (1) Internet and operations of SMEs; (2) SMEs in Vietnam; (3) Internet and e–commerce in Vietnam; (4) Factors of electronic business and its influences on operations of SMEs in Vietnam; (5) Study cases (Tran Luan slow – cooked fish of Vu Dai village, Dong Phuong Nam Company - thanhlyhangcu.com, Nha Viet Company - www.nhaviet.com, Trung Anh paintings –www.trunganhgallery.com ) on benefits of Internet and E – commerce towards SMEs. And especially in part (5), the research group has critically analyzed some particular SMEs to provide more details of Internet’s impacts on strategy and operations of SMEs. 

The research result showed that Internet and technology are important factor which promote the development of SMEs. Internet does not only help local and foreign businesses to widely expand the promotion scale than other communication solutions, but also reduce operating expense when connecting suppliers and promoting their events at lower cost. Internet especially offers more chances for small enterprises because it reduces transaction costs and creates a fair playground. 

Besides, the research proved that Internet is an effective method for SMEs to access international market. Internet helps them to promote the internationalization by cutting off intercompany as well as maintaining their position due to cheaper and more useful promotion tools. It also facilitates to promote the research & development between businesses. Also, Internet can connect enterprises with its global manufacture and build the relationship network which enterprises could access to customers, suppliers, partners then create opportunities for enterprises to establish strategic alliances.

According to research result, research groups suggested SMEs to use the benefits of Internet to expand business. Also, government should create a legal environment which is good for the growth of digital market in both supplying Internet’s services and ensuring the safety of online transactions.

Presenters and representatives have highly evaluated the research result and provided many useful opinions about the research content. These results will be the suggestion for new research topics which could be advice for related offices and units in making plans, promoting advantages, making use of opportunities and offering solutions to challenges, reducing Internet’s disadvantages on operations of SMEs. This will be the significant contribution to the modernization of Vietnam’s economy in the future. 

Nguyen Thu Trang



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