Difficulties and Barriers When Applying E-Commerce in Vietnam Essay

There are many an(prenominal) difficulties when applying e-commerce into Vietnam. The first one is that at that place are only few end customrs in Vietnam admit utilize credit card in their lives. It is because of the tradition of using cash. In addition, Vietnamese people used to do merchant in face-to-face elan and most of the transactions are paid directly by cash. The back one is the Internet usage is legato not widespread and not popular in general. It is because the Internet and telecom charge are until now very high, especially in comparison with the salary of common labor.Moreover, the animation standard is allay low, GDP per capita of Vietnam is most US $1411 (data of World confide 2011). Last but not least, the financial system needs to be changed to support Internet buying and exchange with or without traditional invoices (traditionally, pipeline invoices are issued and controlled centrally by the government, with unified forms). While Vietnam is still a dev eloping country, startups, especially for small and medium enterprises, retain to face with many difficulties to set up e-commerce in trade as well as barriers when running on it.Below are some main barriers to e-commerce bankers acceptance by SMEs High costs of e-commerce giveation E-commerce is too complex to implement Organizational resistance to change inadequacy of technical skills and IT knowledge among employees overleap of cartridge holder to implement e-commerce Lack of suitability of electronic campus for convergences/ receiptss offered by small businesses Lack of awareness of e-commerce benefits Security concerns/lack of trust Lack of financial resources Lack of senior management support/enthusiasm Vietnamese is still inexperienced in Internet dealing with foreign companies.It is showed up by the growth rate and the problems which engender occurred in reality which Nhommua. com is an example. The spare-time activity parts will describe more than about this issu e. Case area of Nhommua. com Brief introduction about Nhommua. com Nhommua. com, which was established in 2010 under M. J Group in cooperation between IDG Ventures, Rebate Networks and Ru-net Global with a sum total investment of $60 million, is a business on gathering gross revenue discount. This company was a pioneer with its first running e-commerce in Vietnam at that time.According to the companys survey, after one year of operations, the business took 60% of market share. The monthly visitors of the web page are 4 million. There are thousands of customers and millions of verifiers sold. Nowadays, Nhommua has to share the marlet with many other competitors but it still keeps the first rank in the market with the market share of 35. 37%. At the third quarter of 2011, Nhommua. com achieved sober results in sales, but do little profit. Thats the reason why investors have worried a lot and are attempting to overtake back their investment.There was a grime inside of the manag ement team leaders which caused the business to close in a short time and damaged their reputation. Products and utilitys Diversified products and service are traded on Nhommua. com. Most of the products and services are in the food for thought industry, functional foods, cafe, spa, dentist clinic, travel, clothes, fashion stuffs, stead linen, interior, etc. Due to this diversity, the feature and original of products and services sometimes are not accredited. Some customers had complained in some forums that they were not satisfied with the quality of products they bought.It was not mentioned clearly on the web of Nhommua about the original and instruction of products then it caused confusing and rebarbative to customers after use. Even some information is not reliable. For example, a voucher of a dentist service did not mention clearly about service charge or additional fee but when customers came to use this service, they had to pay more fees which they did not aware in adva nced. Nhommua has created very good deals for both producers and customers. Firstly, in the producers side, Nhommua helps to bring back more customers than usual or it is a good chance for producer to have more new customers database.With a good price, it creates demand of customers. It is also a good chance to build up branding by promoting. Secondly, in the customers side, Nhommua offers chance to use a cheaper price of product or service. It arouses the potential need of customer. Customers have many chances to buy at a cheaper price for a product that they want to have. Discount may be up to 90% if there is a big group agreeing to buy this product. It is a very attractive price for customers. In contrast, producers have to agree on reducing price much.It sometimes means that to have more new customers, producers have to reduce the price and get little profit in the mean time even get non-profit. military operation of trading on Nhommua. com Those customers who buy vouchers t o get discounts may find a lot of choices. It is easy for customer to buy vouchers online by signing up for an account, choosing the product or service which is available at open selling time, clicking on the buy icon and filling in the necessary information to make sure Nhommua sack up reach the customer. The deal will be done within 72 hours.There are three method of paying for the deal. One is the customers pay at home when using home delivery. For this way, customer may sometimes have to pay a merchant vessels fee if it is not in the free shipping area. Customer can also purchase a voucher directly at the Nhommua office. The goal method is paying by online banking. Below are the figures of signing up an account on Nhommua. com and ordering for a product or service It looks simple to sign up and order on Nhommua. com but still lacks of reliable information. First, it is difficult for Nhommua to make sure that all orders are reliable.Because to get the good price of a product, that the amount of customers agreeing on this price is high. It may cause some fake orders to increase of this amount of agreed customers on good price. There is no commitment between customers and Nhommua or producers. During the time of the scandal inside the company which caused to close the company in a few months, without any commitment, there were some arguments about the most consequential thing in business which is Trust. This caused a bad image on e-commerce business and Nhommua after this scandal lost a lot of customers.