Vo Tan Thanh, vice president of the Vietnam Chamber of Commerce and Industry (Source: VNA)
HCM City (VNS/VNA) – Potential benefits and challenges for the
digital economy and new-age regulations for new-age businesses were discussed
at a workshop in Ho Chi Minh City on August 30.
Pradeep S Mehta, secretary general of CUTS
International, said: “The digital economy is about three things: big data,
advanced analytics, and the Internet of Things. And it is undeniably changing
the nature of the job market, corporate competition and corporate
infrastructure.
“Fifteen years ago, when we spoke about big
names in businesses, we counted oil companies, car manufacturers, retail
chains, airlines, consumer goods producers, etc. Nowadays, when we talk
about corporate giants, it is Apple, Google, Amazon, Alibaba, Facebook,
Uber, etc. that come to our mind.”
They are part of a small yet influential group
of companies that constitute the cutting-edge of digital advancement, he said,
adding that in a sense they have spearheaded digitalisation.
Vo Tan Thanh, Vice Chairman of the Vietnam
Chamber of Commerce and Industry (VCCI), said the digital economy is an
indispensable step as the traditional economy gradually becomes saturated.
“The development of the digital economy and
transfer and utilisation of technologies will provide an opportunity for
developing countries like Vietnam to catch up with other developed economies
quickly,” Thanh said.
If businesses can take advantage of
technologies, they can improve their efficiency and expand markets, he said.
According to Google and Temasek, Southeast
Asia has the fastest growing global internet population with around 260 million
users.
The number is projected to increase to 480
million by 2020, Pham Que Anh, director of CUTS International in Vietnam,
said.
The value of its internet economy is expected to
grow to 200 billion USD by 2025, primarily driven by growth in e-commerce, she
said.
Nguyen Manh Hung, deputy chairman and general
secretary of the Standard and Consumer Association, said e-commerce
has developed rapidly in Vietnam and there is a lot of room to develop further.
Business-to-customer transactions had been worth
4.07 billion USD in 2015, up 37 percent from 2014 and accounting for 2.8 percent
of total retail and consumer services, he said.
Last year, 35 percent of businesses had online
sales channels, a year-on-year increase of 7 percent, while 60 percent of
consumers said they shop online, he said.
“Application of information and communication
technology advancements in commerce has brought benefits for both sellers and
buyers,” he said.
Digital technologies enable businesses to
promote their products, services and brands to customers in the most effective
manner, and at the same time help consumers find information about the products
quickly, easily and comfortably, he said.
But the digital economy also comes with concerns
like cyber security, data and privacy breaches, behavioural discrimination and
manipulation, lack of liability, and job losses, Mehta said.
Delegates at the workshop said the digital
economy has come to be known as an incubator for new-age businesses, which are
based on disruptive technologies and innovative business models.
Despite their huge success, many such businesses
have found themselves in turmoil. Due to the disruptive nature of such
businesses, regulatory bodies often find it difficult to regulate such
entities, and may end up applying archaic regulations, which may hamper their
growth, they said.
Therefore, developing appropriate legal
regulations that promote the welfare of consumers and ensure the legitimate
rights and interests of all enterprises in the market and at the same time
stimulate their creativity are needed, they said.
At the workshop, CUTS International launched a
project titled “Regional Inclusive Growth Project” it will implement in three
countries – India, the Philippines and Vietnam – for 18 months till the end of
2018.
It is aimed at highlighting the need
to strengthen the digital economy in these three countries by showcasing
best practices from across sectors and geographies regarding the benefits
brought to consumers by digital platforms and technologies and identifying and
pushing for the removal of bottlenecks and barriers.-VNA