E-commerce is considered an effective measure helping businesses,
especially small and medium-sized enterprises (SMEs), to reduce direct
transaction costs during times of economic downturn, according to the
Ministry of Industry and Trade.
A recent survey from the ministry
showed investment costs for e-commerce accounted for roughly 5 percent
of a company's total investment capital, but could increase a firm's
turnover by an average of 33 percent.
Surveyed companies said
turnover gained through e-commerce transactions have risen significantly
during recent years and helped them access foreign customers, build
their image, cut costs and increase profits.
A representative
from Hanoi-based Visimex Joint Stock Co, which specialises in supplying
and exporting aromatic spices, said 80 percent of his company's turnover
comes from e-commerce. The company has customers from China, India,
Indonesia, the Middle East, South Africa and Spain and has been a member
of the Hong Kong-based e-commerce trader Alibaba.com for six years.
Thai
Binh-based Dam San Textile Co said it receives orders from roughly 80
customers every month mainly from Germany, the US, France and China
thanks to their presence on Alibaba.com.
As online trading has
proven to be effective, the ministry recommended that in stead of
spending money on establishing direct distribution networks or
showrooms, SMEs should invest in building websites or join international
e-commerce floors such as Alibaba.com, eBay.vn or Amazon.com.
It
said that it is often difficult for SME's to access foreign markets
directly due to restricted capital sources and limited export
experience, however it is easy for them to take part in online export
channels, which are popular in the US and dozens of countries
world-wide.
Participating in e-commerce to boost exports is an
indispensable trend as importers in large markets such as the US and EU
often choose the e-commerce transaction floors of Alibaba.com, eBay.vn
or Amazon.com to buy products. International businesses in Fortune 500
such as IKEA, Walmart, Toshiba, Delphi and Saferoad also use e-commerce
floors to organise offline meetings and buy products from reliable
suppliers, the ministry said./.
