www.osbholding.com
August, 2015
E-COMMERCE ROLES
FOR GLOBAL BUSINESS EXPANSION
Mr. Tran Dinh Toan – Deputy CEO – toantd@osbholding.com
CONTENT
1
OSB Overview
2
Vietnam Export Outlook
3
E-commerce Roles
4
Alibaba.com model
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OSB Investment and Technology JSC
INTRODUCE
Establishment day 3 / 8 / 2007
O ppotunity
S olution
Employeers
Head Office
100+
Hanoi
Rep. Office
Ho Chi Minh
City
Vung Tau
City
B usiness
Providing equipment | Consultancy
Technical services
| HR Development
Authorized Reseller of Alibaba Group from
2009
CONTACT US
e-Commerce
Da Nang
City
Can Tho
City
Tel: +84 4 36.40.40.69
Fax: +84 4 36.40.36.69
Information Technology
Web application
| Web 2.0
e-Commerce website | e-Government
Reseller
Room 305, DETECH Building,
No. 8 Ton That Thuyet Str,
My Dinh, Nam Tu Liem Hanoi
Satellite & Telecom
3 MAIN ACTIVITIES
Rep. Office
contact@osbholding.com
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Potential of Vietnam Export and Import 2005-2014
Export
Billion USD
Import
Trade Balance
Total
298.24
270
264.0655
228.36
220
203.64
170
157.08
143.4
120
70
132.0326
111.24
106.73
84.72
69.42
80.71
62.68
20
148.05
127.05
36.98
32.44
44.89
39.83
-4.54
-5.06
2005
2006
48.56
62.69
84.84
69.95
57.1
72.24
96.91
-14.12
-18.02
-12.85
-12.6
-9.82
2007
2008
2009
2010
2011
-30
113.79
Source: Vietnam Customs 15/2/2014
114.57
132.0329
150.19
0.78
0.0003
2.14
2012
2013
2014
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Top Vietnamese Export Product in 2014
2014
40
2013
37.27
35
30
23.95
25
20
15
13.50
11.45
8.78
10
8.10
7.84
6.95
6.80
4.55
5.63
5
-
33.47
20.48
11.37
9.32
9.40
6.70
6.69
6.30
6.80
4.96
Source: Vietnam Customs 15/2/2014
3.97
8.64
3.21
2.51
1.76
1.41
1.12
1.01
0.65
0.49
7.15
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Top Vietnam Export Market in 2014
ASEAN
19.12
13.10%
Japan
14.70
10.07%
Korea
7.14
4.89%
Middle East
8.03
5.50%
China + Hongkong
20.11
13.78%
Other
25.06
17.17%
USA
28.66
19.63%
America
6.00
4.11%
Asia (others)
5.64
3.87%
Australia
4.31
2.95%
Europe
30.27
20.74%
Source: Vietnam Customs 15/2/2014
Africa 1.97 1.35%
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Vietnam globalization and market openness
Vietnam now is under a lot of FTA negotiation with various large partner simultaneously
such as TPP, EU.
FTAs have been signed
AFTA
Asean
AIFTA
Asean - India
VCFTA
Vietnam – Chile
AANZFTA
AKFTA
Asean – Australia/New Zealand
EPA
Vietnam – Japan
Asean – Korea
AJCEP
Asean – Japan
ACFTA
Asean – China
VCUFTA
Vietnam – Belarus – Kazakhstan – Russia
FTAs are under negotiation or just completed negotiation
RCEP
Regional Comprehensive
Economic Partnership
TREATI
Asean – EU
ASEAN + 6
(ASEAN, China, Japan, Korea, India,
Australia, New Zealand)
EVFTA
Vietnam – EU
TPP
Trans-Pacific Partnership
VEFTA
Brunei, Chile, New Zealand, Singapore,
USA, Australia, Peru, Malaysia, Mexico,
Canada, Japan, Taiwan, Korea, Vietnam
Vietnam – Switzerland – Norway – Liechtenstein – Iceland
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Great opportunity ahead!
“The country has the potential to become
one of the world’s fastest-growing economies
over the period to 2050,
According to PricewaterhouseCoopers LLP”
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People now being connected!
Leads to the changes of purchasing behavior!
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Internet of Things
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Internet of Things
”The Internet Of Things” will be Huge,
and drive tremendous Value
for People and Businesses!
… to a “Global” Sourcing Network
Bulgaria
Moldova
Poland
Croatia
Romania
Turkey
Morocco
China
Turkmenistan
Bangladesh
Israel
Egypt
India
Vietnam
Cambodia
Sri Lanca
Indonesia
Source: TESCO
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Online Trending
IMPORTANCE OF VARIOUS CHANNELS TO BUYERS
Overall
Local Sourcing
International Sourcing
Internet Search Engine
Online
Channels
47
B2B Ecommerce
57
50
48
50
Recommender
Tradeshow
42
Yellow Page
Newspaper/Magazine
46
48
40
30
Association
Traditional
Channels
56
52
39
Local trading center
Offline
Channels
53
44
35
39
41
81%
Percentage of enterprises
seeking buyers & sellers
online
71%
Percentage of enterprises
want to join international
trading compared with 2014
27
24
Source:28
Nielsen Company
26
24
27
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Global E Commerce growth by region
E Commerce growth by 2015
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Vietnam E-Commerce
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• Internet: 39%, ranking No 1 in
ASEAN (T1/2014, We are Social and
comScore)
• Cell phone: 151%
(June, 2013)
• 3G: 37% (Sep, 2013)
Population of
VN 2014
Population
using the
Internet
Estimated
value of online
purchases of
each person in
2014
Percentage of
Internet access
participating
in online
shopping
Estimated
revenues from
B2C in 2014
90.73 million
39%
145 USD
58%
2.97 billion
Source: Vietnam E-Commerce Report 2014, VECITA
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E-Commerce is a KEY strategy
for the global business EXPANSION
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OVERVIEW
 Established since 1999
 By 12/2013 Alibaba.com has 43.8
million
Members from 240 countries
 90% members wishing to buy, that mean
Alibaba has nearly 40 million Buyers
 Average member growth 80% per years
 Alibaba has 40+ Industries and 5,900+
Product Categories
 Alibaba has 5.5
million online stores
Alibaba Global User Base
Canada
2.0+
million
U.K.
1.9+
million
Germany
609+
thousand
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Russia
2.3+
million
Australia
1.3+
million
U.S.
9.6+
million
Brazil
2.1+
million
Turkey
647+
thousand
Malaysia
909+
thousand
Data as of December 31, 2013
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How Alibaba attract buyer to the platform?
Step 1
Buyer training
Step 2
Buyer Sourcing Event
 Global buyer share their experiences via Alibaba
training videos. It is aimed at providing global
buyer the guide to source products on
Alibaba.com effectively.
 More than 2 million buyer all around the world
have been trained so far and highly appreciate
such training.
Step 3
RFQs
Step 4
Global Tradeshow
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How Alibaba attract buyer to the platform?
Step 1
Buyer training
Step 2
Buyer Sourcing Event
Step 3
RFQs
Step 4
Global Tradeshow
 The Buyer Sourcing online or offline will bring the attractive business opportunity for Gold
Supplier where they can meet global big buyers
 Buyer Sourcing will reduce risk of global product sourcing for big buyer and give more
choices with quality suppliers in a short time.
KCX
international
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How Alibaba attract buyer to the platform?
Step 1
Buyer training
Step 2
Step 3
Buyer Sourcing Event
RFQs
Step 4
Global Tradeshow
Identify potential buyer thru RFQs
 RFQs (Request For Quotations) This is quality inquiry filter, Industry specialist from
Alibaba.com will randomly and send to Alibaba.com member
 5000 effective quotations from GGS every day on average but 30% of RFQ have not
received RFQ in the first week!
 20,000 new RFQ upload on daily basic on the Alibaba.com
Increased 120,000
RFQs every week
Rate of successful order from RFQ is 6
higher than normal inquiry
6
4
2
0
Normal Inquiry
RFQ
times
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How Alibaba attract buyer to the platform?
Step 1
Buyer training
Step 2
Buyer Sourcing Event
Step 3
RFQs
Step 4
Global Tradeshow
Alibaba.com has been actively promoting its brand name and Gold Supplier members at
a lot of leading international tradeshows around the world.
Europe
Hannover Messe, Germany
Paris, Batimat
Asia
Frankfort Ambiente
Asian American
New York
Hong Kong
America
Las Vegas, SEMA
Las Vegas, CES
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Buyers’ Best Friends
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Global Trade Show Promotion
Alibaba.com participates in over 35 leading international trade shows per year to help our
Gold Supplier members promote their products.
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Vietnamese Member on Alibaba.com
300,000
members
1999
2000
FIRST
2001
Vietnam Member
2002
2003
2004
2005
2006
2007
2008
2009
100,000
members
2010
2011
2012
2013
2014
2015
200,000
members
VN GGS
143%
136%
2013
2014
VN GGS
2015
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VIETNAMESE SUCCESS STORIES
http://osb.alibaba.com
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© 2007-2015 OSB Investment and Technology Join Stock Company.
OSB and OSB’s product names are or may be registered trademarks and/or trademarks in Vietnam and/or other countries. The information herein is for informational purposes only and
represents the current view of OSB JSC as of the date of this presentation. Because OSB must respond to changing market conditions, it should not be interpreted to be a commitment on
the part of OSB, and OSB cannot guarantee the accuracy of any information provided after the date of this presentation. OSB MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY,
AS TO THE INFORMATION IN THIS PRESENTATION.