intercontinental phnom penh - britcham development of an education program to address fundamental...

The British Chamber of Commerce, Cambodia www.britchamcambodia.org The European Chamber of Commerce in Cambodia www.eurocham-cambodia.org

eCommerce in ASEAN Emerging Markets I Monday 26th October 2015 InterContinental Phnom Penh

#ecomASEAN

Agenda

#ecomASEAN

12.05 - 12.10: Welcome Remarks & agenda for the day 12.10 - 12.50: Lunch served 12.50 - 13.00: Stats and Growth Numbers & eBusiness Group Mission 13.00 – 14.00: Amazon Presentation & Questions from audience 14.00 - 14.20: Break & transition to Stakeholder session 14.20 – 16.00: Stakeholder Session

Introductory Remarks & Overview of eCommerce in Cambodia/ASEAN

#ecomASEAN

Mission To provide a forum for interested stakeholders to collaborate

and to promote eCommerce in Cambodia. •  Promote and build awareness of challenges and

opportunities;

•  Coordinate with other stakeholders including government and private sector groups;

•  Provide input to draft eCommerce law;

•  Create information resources for best practices

#ecomASEAN

Sectors

Banking Legal Logistics Telecommunications/ISP Marketing & Media Retail

Chairpersons Tomas Pokorny Christopher McCarthy

#ecomASEAN

Activities •  Develop Briefing Document on challenges, issues and

opportunities for eCommerce growth in Cambodia •  Sponsor research on market size and opportunity for

eCommerce •  Provide input from Private Sector to eCommerce draft

legislation •  Regular meetings and lunches to promote eCommerce

and bring together stakeholder

#ecomASEAN

PLEASE JOIN US

#ecomASEAN

http://britchamcambodia.org/business-groups

#ecomASEAN

#ecomASEAN

76%

24%

eCommerce Sales (2014)

Global

Asia Pacific (incl.SE Asia)

$1.922t

$599.66b

#ecomASEAN

0.00

100.00

200.00

300.00

400.00

500.00

600.00

Asia Pacific Cambodia

eCommerce Sales Cambodia (2014)

eCommerce Sales Cambodia (2014)

$599.66b $30m

Guest Speakers:

Mr. Zachary Chew, Regional Head for Amazon Global Selling

Ms. Maia Qiu, Regional Manager for Amazon

#ecomASEAN

Stakeholder Session

#ecomASEAN

Agenda •  Recap of eCommerce Business Group activity and progress to

date •  Presentation of Draft Briefing Document

–  Q&A

•  Workshop to get input from the group

#ecomASEAN

Recap of Activities to-date

#ecomASEAN

•  Three meetings so far, to develop working group structure and focus, goals and mission

•  Agreed to create a “Briefing Document” to capture challenges

and opportunities, and surface Private Sector concerns and requirements for successful eCommerce in Cambodia

•  Brainstorming session held to surface issues •  Sectors have contributed input individually •  Today, presentation of synthesized draft Briefing Document

Briefing Document: Input

#ecomASEAN

Considerations for eCommerce

#ecomASEAN

Geographic location of buyers and sellers •  In-Country •  Cross border

Types of organizations •  Local sellers looking for international market access •  International companies looking for local market access

Channels •  B2B, B2C, C2C

Framework for grouping issues

#ecomASEAN

• Technical and Operational Factors of eCommerce • Socio-Economic and Cultural Factors of eCommerce • Legal and Governmental Factors of eCommerce

Draft Framework – Issue Grouping

#ecomASEAN

Technical and Operational Factors of eCommerce Telecommunications / Internet Infrastructure Financial Services / Payment Mechanisms Delivery Infrastructure / Logistics

Socio-Economic and Cultural Factors of eCommerce Requirements for Business Investment in E-Commerce Requirements for Consumer Use of E-commerce

Legal and Governmental Factors of eCommerce General Business Law Government Factors


#ecomASEAN

Technical and Operational Factors of eCommerce Telecommunications / Internet Infrastructure

•  Require Internet speed and reliability •  High access costs and operating costs •  Lack of unified protocol/standards development process •  Lack of locally hosted servers and content because of costs and

reliability •  Concerns about restrictions via licenses and regulations •  Need mobile versions of ecommerce websites


#ecomASEAN

Technical and Operational Factors of eCommerce Financial Services / Payment Mechanisms

•  Not enough payment gateways •  Need appropriate localized payment methods, for various social economic levels •  Buyers lack debit/credit cards; current eCommerce settled in COD

•  Promote payment through banking system •  Make sure new payment entities are licensed

•  Security compliance – PCI DSS, 3D secure •  Impact of de-dollarization / requirements for accepting KHR

•  Internal policy/procedure – risk management/control and customer protection •  24/7 uptime and support service •  Currently, no national shared switch for accepting banks’ proprietary card and

interbank settlement


#ecomASEAN

Technical and Operational Factors of eCommerce Delivery Infrastructure / Logistics

•  Lack of A reliable system to deliver goods to customers •  High costs of customs and duty, including physical paperwork •  Customs favors one large shipment over many small shipments •  Handling of returns a problem


#ecomASEAN





#ecomASEAN

Socio-Economic and Cultural Factors of eCommerce Requirements for Business Investment in

E-Commerce •  Questions about the potential size of the market and the investment

required •  Market acceptance and trust of online payments / non cash payments •  Confidence in ability to conduct business (deliver goods, get payment) •  Need access to accurate information on eCommerce rules,

understanding law and how to operate •  Expectation for graft/corruption in which international players cannot

participate •  Concerns about dispute resolution procedures •  Infrastructure requirements to conduct ecommerce •  Trained staff required to conduct ecommerce


#ecomASEAN

Socio-Economic and Cultural Factors of eCommerce Requirements for Consumer Use of E-

commerce •  Market acceptance and trust of online payments / non cash payments •  Transactional Trust (ordered goods will arrive; payment will be made) •  Language and culture barriers •  Preference for cash transactions •  Preference for physical shopping experience •  Access to Internet •  Understanding of how to make an online purchase •  Ability to pay for an online purchase (in advance by credit card or

COD) •  Concerns about returning products


#ecomASEAN





#ecomASEAN

Legal and Governmental Factors of eCommerce General Business Law

•  Fast-changing eCommerce environment makes it difficult for law-

making to keep up; this can impact competitiveness •  Industry guidelines, codes of conduct/practice and sector regulations

can be put in place faster than law-making, could fill gaps if public sufficiently aware

•  Concern about promotion of awareness of laws •  Not enough information about progress of the draft law •  Questions about dispute resolution and enforcement •  Guidance on consumer protection law plans and privacy laws


#ecomASEAN

Legal and Governmental Factors of eCommerce Government Factors

•  Government willingness to invest in IT •  Government has a plan to automate parts of eCommerce activities,

working with Japan, Korea -- Need information about this •  Concern that government is focused on big companies for law-making

vs smaller firms •  Lack of previous law or practices allows latest generation approach to

be a starting point •  Concern about relevant government ministries needing sufficient

expertise and knowledge for both law-making and issue / dispute resolution.

Recommendations

#ecomASEAN

•  Promotion, awareness and education of e-commerce, market size and growth projections, to build understanding and trust with both buyers and sellers.

•  Draw on this working group, and local private-sector technical experts available, to provide expertise necessary to move forward on eCommerce areas.

•  Existing banks and payment providers can take an industry lead on developing leadership and good standards.

•  Clean slate to use best-practice model legislation, codes of practice and sector guidelines without needing to refer to previous practices.

•  Take a proactive stance with non-licensed payment providers. •  Set a deadline for de-dollarization and be able to accept KHR payments

(along with USD) either as a requirement or within a specified time frame. •  Development of an education program to address fundamental e-commerce

concepts and skills development. •  Conduct research to determine market size and potential for e-commerce.

Please fill in the Survey available on your table

#ecomASEAN

intercontinental phnom penh - britcham development of an education program to address fundamental...

Documents