Difficulties and Barriers When Applying E-Commerce in Vietnam Essay

on that point ar many a nonher(prenominal) demandingies when applying e-commerce into Vietnam. The first iodine is that on that point ar only few end commitrs in Vietnam fall in used credit tease in their lives. It is because of the tradition of using cash. In addition, Vietnamese people used to do merchant in face-to-face sort and most of the transactions are remunerative directly by cash. The second one is the net income usage is still not widespread and not popular in general. It is because the meshing and telecom charge are still very high, especially in comparison with the salary of common labor.Moreover, the alimentation standard is still low, GDP per capita of Vietnam is nigh US $1411 (data of World Bank 2011). cultivation but not least, the financial brass needs to be changed to support Internet geting and interchange with or without conventional invoices (traditionally, traffic invoices are issued and controlled centrally by the government, with unifi ed forms). While Vietnam is still a developing country, startups, especially for small and forte enterprises, apply to face with many difficulties to rig up e-commerce in line of work as well as barriers when running on it.Below are some primary(prenominal) barriers to e-commerce adoption by SMEs High cost of e-commerce fulfilation E-commerce is too complex to implement Organizational resistance to change lose of technical skills and IT knowledge among employees neglect of eon to implement e-commerce Lack of suitability of electronic campus for products/ portions offered by small businesses Lack of aware(p)ness of e-commerce benefits Security concerns/lack of conceive Lack of financial resources Lack of older focussing support/enthusiasm Vietnamese is still inexperienced in Internet wishing with foreign companies.It is showed up by the growth rate and the problems which have occurred in reality which Nhommua. com is an example. The following parts go forth describe mo re rough this issue. representative study of Nhommua. com Brief introduction about Nhommua. com Nhommua. com, which was established in 2010 under M. J Group in cooperation in the midst of IDG Ventures, deduction Networks and Ru-net Global with a total investing of $60 million, is a business on group sales discount. This company was a pioneer with its first running e-commerce in Vietnam at that eon.According to the companys survey, subsequently one year of operations, the business took 60% of market destiny. The monthly visitors of the blade page are 4 million. in that location are thousands of clients and millions of vouchers sold. Nowadays, Nhommua has to share the marlet with many other(a) competitors but it still keeps the first value in the market with the market share of 35. 37%. At the third quarter of 2011, Nhommua. com achieved salutary results in sales, but do little profit. Thats the reason why investors have worried a freshet and are attempting to get back their investment.There was a scandal privileged of the management team leaders which caused the business to loaded in a short term and damaged their reputation. Products and work Diversified products and receipts are traded on Nhommua. com. Most of the products and go are in the food industry, operable foods, cafe, spa, tooth doctor clinic, travel, clothes, fashion stuffs, seat linen, interior, and so on Due to this diversity, the quality and original of products and services sometimes are not accredited. roughly customers had complained in some forums that they were not agreeable with the quality of products they bought.It was not mentioned intelligibly on the web of Nhommua about the original and instruction of products then it caused confusing and unpleasant 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 give but when customers came to use this se rvice, they had to buckle under more fees which they did not aware in advanced. Nhommua has created very good deals for twain manufacturers and customers. Firstly, in the producers side, Nhommua helps to amaze back more customers than usual or it is a good chance for producer to have more new customers database.With a good cost, 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 strength need of customer. Customers have many chances to spoil at a cheaper price for a product that they want to have. Discount whitethorn 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 performer that to have more new customers, producers have to reduce the price and get less(prenominal) profit in the mean ti me even get non-profit. Procedure of commerce on Nhommua. com Those customers who buy vouchers to get discounts whitethorn find a lot of choices. It is well for customer to buy vouchers online by subscribe 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 coiffure sure Nhommua can reach the customer. The deal will be done deep down 72 hours.There are third method of paying for the deal. One is the customers pay at home when using home delivery. For this way, customer whitethorn sometimes have to pay a merchant vessels fee if it is not in the free shipping area. Customer can also obtain a voucher directly at the Nhommua office. The last 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 open to sign up and order on Nhommua. com but still lacks of reliable information. Fir st, 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 growing 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 alpha 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.