Environment for Electronic Commerce Vietnam ECommerce Department Ministry

Environment for Electronic Commerce (Vietnam) E-Commerce Department Ministry of Trade Vietnam

ICT infrastructure www. mot. gov. vn 2

Internet – History marks v Before 1997: dial-up by early ISP: FPT, Netnam v Decree 21/1997/ND-CP: legal basis for Internet service provision v December 1997: Vietnam officially connect to Internet Ø 1 IXP: VNPT Ø 4 ISP: VNPT, FPT, SPT, Netnam v 2000, internet service provided nation-wide v Dial-up through telephone line system of VNPT www. mot. gov. vn 3

Internet – History marks v Decree 55/2001/CP-ND on management of Internet services. Change in perception Ø Changing from “Manage then Open the service” to “Mangement for development of Internet service” v 2002: Termination of monopoly in IXP v 5/2003: ADSL – the break through in Internet services Ø The booming of internet service (café, services. . . ) Ø Connecting forms: Wi-Fi, GPRS v 10/2003: Establishment of National Internet Center. VNIX www. mot. gov. vn 4

Development of Internet services For 2005 statistics v International bandwidth: 2, 997 Gbps v IXP (6), ISP (17), OSP (15), ICP v Total subscribers: 2, 3 mio (population: 80 mio) v Internet users: 8, 56 triệu v Number of domain names. vn: 12. 611 (80%. com. vn) Ø Ratio of domain names / population still low: 0, 00017 v Number of IP provided: 607. 744 Ø Increase but still low compared to the other countries v Number of business with website: 17. 500 www. mot. gov. vn 5

Characteristics v Development of value-addes services: Vo. IP, chat, forum, online games v Diversification of users, longer time of using internet v Only 5/17 ISP actually operating in market v Domestic contents development increase: business, education, news. . . www. mot. gov. vn 6

Events v Online Securities Ø Establishment of – Vn. CERT v Certificate authorities Ø Some providers of digital signature and CA v E-payment forms v Open source is not widely applicable v EDI just begins www. mot. gov. vn 7

Legal environment & Policy www. mot. gov. vn 8

Legal environment & Policies v Policies regarding e-commerce Ø Ø Ø Strategy for ICT development (Govt Decision No. 246) Master Plan for E-commerce development (2005) Master Plan for E-government development (2005) Project assisting SME’s application of E-com (2006) Strategy for SW industry development v Legal environment Ø E-commerce Ordinance Ø Electronic Transaction Law (3/2006 effected) Ø ICT Law (drafted 2006) www. mot. gov. vn 9

Legal environment & Policies v Related laws Ø Ø Commercial Code (amended 2005) Civil Code (amended 2005) ICT law (drafted) IPR law v Related Govt’s decrees Ø E-commerce decree (drafted) Ø Digital and CA service decree (drafted) Ø E- Financial & e- banking transaction decree (drafted) www. mot. gov. vn 10

Legal environment & Policies v Policies relating to E-commerce Ø Ø Ø Management, provision and usage of internet E-payment E-customs E-tax Online criminals Managements of domain name: Quy định về quản lý và sử dụng tài nguyên Internet (QĐ 27/2005/QĐ-BCVT) Ø Management of website establishment (website): Quy định về cấp phép (QĐ 27/2002/QĐ-BVHTT) www. mot. gov. vn 11

Economic and Society conditions www. mot. gov. vn 12

Popularization of Internet v Reduction in cost of PC, laptop. . . Ø Youth users Ø Objectives of using internet are different v English and foreign language level v International integration: open of ICT market, Internet services v Hacker, virus, spam, fraud of c/c, pornography www. mot. gov. vn 13

Supporting activities v Application of state orgnizations Ø E- trading procedures, e-tax, e-customs v Supporting organizations Ø VCCI, VIA Ø E-com Department under Ministry of Trade v Training Ø Lack of programmers, all levels Ø Education in ICT (most of universities) Ø Education in Ecommerce still beginning (a few universities) www. mot. gov. vn 14

Purchasing habits v Traditional habits of purchasing v Habits of using cash v Banks’ efforts in electronic-payments Ø Credit card Ø Debit card v … still in beginning, not very convenient Ø Lack of linkage among the banks Ø Online/Internet payments, banking still in preparation www. mot. gov. vn 15

Social issues v v v ICT attract the development Copy right violations Consumer protection regulations Privacy protection Dispute resolutions www. mot. gov. vn 16

Some idex v (Information Society Index) ISI: 52/53 (IDC & World Time) Ø Computer, ICT infrastucture, social development v v Network Readiness Index: 68/104 (WEF) E-Readiness Index: 61/65 (EIU) E-Gov 2004: 112/191 (UNPAN) Software Engineering Index: 17/30 (CIO Insight – Global Outsourcing 2005) v Copy Right Violation ratio: 92%, 89/89 (BSA) www. mot. gov. vn 17