___________________________________________________________________________

2019/ECSG/WKSP2/002

Viet Nam E-Commerce Development Status and Supporting Policies for Digital Economy

Submitted by: Viet Nam

Workshop on Promoting the Participation of MSMEs in the Regional Market to Bridge the Digital

Divide in APECHa Noi, Viet Nam

22-23 October 2019

VIETNAM E-COMMERCE DEVELOPMENT STATUS AND SUPPORTING POLICIES FOR DIGITAL ECONOMY

Source: We are Social, Jan 2019

Growth rate

Retail E-commerce sales(USD$ billion)

Source: iDea

4.07

5

6.2

8.06

2015 2016 2017 2018

2015 2016 2017 2018

Number of online shoppers (mil. people) 30,3 21,7 33,6 39,9

Online spending per capita (USD) 160 170 186 202

% of total retail sales 2,8% 3% 3,6% 4,2%

No. E-commerce during 2017 - 2018 2017 2018

1 Firms owning e-commerce website 43% 44%

2 Shoppers making purchases via mobile devices 41% 81%

3 Mobile apps 13% 13%

4 Rating the effectiveness of shopping channels by firms

Social media 39% 41%

Firm’s websites 35% 53%

Mobile apps 22% 52%

E-marketplaces 18% 49%

Source: iDea

Payment methods used by online purchasers

Level of satisfaction Source: iDea

COD ATM, internet Banking

Credit Card E-walletOther

92%Using mobile to access internet

70%Internet users make online purchase at least once

81%Using mobile to make online purchase

Very satisfied Satisfied Ok Disatisfied

Electronic Transactions Consumer Protection Privacy and Data Protection

Cybercrime

78% 38% 45% 70%

Summary of Adoption of E-Commerce Legislation in Asia Pacific

E-transaction•E-transaction Law 2005

•Decree No. 26 providing detailed Regulations on the implementation of the Law on E-transactions on digital signature and digital signature certification services•Decree No. 170 and Decree No. 106 amending some provisions of Decree No. 26 •Decree No. 52 on E-commerce Management

Cyber-crime

•Law on Cyber security 2018

•Law on Network Information Security 2015

•Law on Information Technology 2006

•Decree No 55 on the Management Provision and Use of Internet Services

•Decree No 142 Specifying Administrative Penalties in the Field of Post, Telecommunication and Radio Frequency

•Civil Code

•Penal Code

Data Protection & Privacy

Consumer Protection

Law on Protection of Consumer Rights 2010Decree No. 52 on E-commerce Managemen

t

•Law on Cyber security 2018

•Law on Network Information Security 2015

•Law on Information Technology 2006

•Decree No 55 on the Management Provision

and Use of Internet Services

•Decree No 142 Specifying Administrative

Penalties in the Field of Post, Telecommunication

and Radio Frequency

•Civil Code

•Penal Code

National strategy on Transforming Vietnam into an advanced ICT country

National program on IT application in the operations of state agencies during period 2016-2020

Decision No. 392/QD-TTg (2015)

Targeted Program on information technology development by 2020 with a vision toward 2025

Decision No. 149/QD-TTg (2016)

Goals for broadband and telecommunications infrastructure development by 2020

Decision No.1819/QD-TTg (2015)

Decision No. 1563/QD-TTg (2016)

Master Plan on E-commerce Development for the 2016-2020 period

Directive 16-NQ/TW (2019)

Strengthening progress towards the 4th Industrial Revolution

“Focus on the establishment and development of the digital economy and the smart industry,

considering them as key tasks in restructuring the economy as well as shifting the growth model

towards improved productivity, quality, efficiency, and competitiveness”

Decision No. 1755/QD-TTg (2010)

Vietnam ranked among 3 leading ASEAN countries on the

Global Innovation Index by 2025, among 40 leading countries

gloabally by 2030

Digital infrastructure: the advanced level in ASEAN

Coverage of broadband Internet includes 100% commnues by 2025,

5G network covers nation-wide by 2030

Digital economy accounts for 20% of GDP by 2025, 30% of

GDP by 2030

Labor productivity increased by over 7%/year till 2025,

7.5%/year till 2030

Directive 16-NQ/TW: goals of progress

Digital transformation in the Government sector basically

completed by 2025, digital Government established by 2030

Developing new digital infrastructure and networks

Speeding up reform to encourage businesses to adopt new technology

Prioritizing the development of ICT industry in government policy and reform

Building the innovation eco-system

Building technological skills through a focus on STEM educationand training

Directive 16-NQ/TW indicates measures to further support technological modernization of industry

Raising awareness of the 4th Industrial Revolution

Development of digital infrastructure

Promotion of interoperability

Achievement of universal broadband access

Development of holistic government policy frameworks for the Internet and Digital Economy

Promoting coherence and cooperation of regulation approaches affecting the Internet and Digital Economy

Promoting innovation and adoption of enabling technologies and services

Enhancing trust and security in the use of ICTs

Facilitating the free flow of information and data for the development of the Internet and DE, while respecting applicable domestic laws and regulations

Improvement of baseline Internet and DE measurements

Enhancing inclusiveness of Internet and DE

Facilitation of E-commerce and Advancing Cooperation on Digital Trade

Digital policies and regulations: key aspects of national

and regional policy frameworks need to be developed further

1. Framework for e-commerce transactions largely present>E-transactions laws in most countries> developing an E-Commerce Roadmap

2. Framework for data privacy and cross-border data flows less mature>Malaysia, Singapore, Philippines have comprehensive data protection laws>Draft laws in Thailand and Indonesia >Recent cybersecurity law in Vietnam>No public plan for laws in Myanmar, Brunei, Cambodia, Lao PDR

3. Framework to promote trust and security is underdeveloped>Consumer protection: trust deficits a key barrier to e-commerce adoption by

consumers (e.g. payments, product quality)>Cybersecurity legal frameworks, enforcement capacity, expenditure relatively limited

National policy frameworks: all countries have some kind of digital economy strategy in most cases, institutional mechanisms to prioritize

implementation and monitor are neededRegional policy frameworks: growing body of high-level regional

goals/principles need to move to concrete implementation; technical discussions on coherence of regulations

An enabling environment will determine the pace and quality of digital economy development

and benefits for the population.

Supportive macroeconomic and business climate (Including stable macroeconomic situation, tax policy, trade openness, competition

policy)

Digital economy foundations

Universal access to affordable, high-speed broadband

Skills Payment LogisticsDigital policy, regulation and

Digital ID

Growing the digital economy(Including digital entrepreneurs; e-commerce; FinTech; ICT sector; digital transf

ormation of industries)