BACH VIET COLLEGE
FACULTY OF FOREIGN LANGUAGES
INTERNSHIP REPORT
Instructor
: Nguyễn Thị Nguyệt Ánh, M.A.
Student
: Phạm Minh Hiền
Student code : 21090244
Class
: C109TA01
Ho Chi Minh City, July 10th 2012
BACH VIET COLLEGE
FACULTY OF FOREIGN LANGUAGES
INTERNSHIP REPORT
Instructor
: Nguyễn Thị Nguyệt Ánh, M.A.
Student
: Phạm Minh Hiền
Student code : 21090244
Class
: C109TA01
Ho Chi Minh City, July 10th 2012
ACKNOWLEDGEMENT
During the last few weeks, I got many valuable instructions from school.
At the same time, Hau Phong Limited Liability Company has agreed to help me
and created favorable conditions for me to complete my assignment well.
I would like to express my deep gratitude to teachers of Bach Viet College,
Faculty of Foreign Languages, and specially, my heartfelt thanks to Nguyễn Thị
Nguyệt Ánh Master who helped me a lot in my internship report.
I express also thank to Hau Phong Limited Liability Company for created
conditions to help me finish my internship well.
On this occasion, I wish respectfully all of the staff and teachers at Bach
Viet College, staffs at Hau Phong Company constant good health and great
success in your career.
Ho Chi Minh City, July 10th 2012
Student
Phạm Minh Hiền
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SUPERVISOR’S COMMENTS
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INSTRUCTOR’S COMMENTS
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TABLE OF CONTENT
INTRODUCTION .....................................................................................................1
0.1.
RATIONALE FOR THE STUDY ..............................................................1
0.2.
SIGNIFICANCE OF STUDY ....................................................................2
0.3.
STATEMENT OF PURPOSE ....................................................................3
0.4.
LIMITATION .............................................................................................3
0.5.
METHODOLOGY ......................................................................................3
0.6.
RESEARCH PROCEDURE .......................................................................4
0.7.
ORGANIZATION OF THE REPORT .......................................................4
CHAPTER I: BACKGROUND INFORMATION OF THE COMPANY .........5
1.1.
OVERVIEW ...............................................................................................5
1.2.
ORGANIZATIONAL STRUCTURE.........................................................6
1.2.1.
Board of Members .............................................................................7
1.2.2.
Chairman of the Board .....................................................................7
1.2.3.
Director ...............................................................................................7
1.2.4.
Finance and Accounting Department ..............................................7
1.2.5.
Administrative and Personnel Department ....................................7
1.2.6.
Sales Department ...............................................................................8
1.2.7.
Technology Department....................................................................8
1.3.
THE FIELDS OF BUSINESS ....................................................................8
CHAPTER II: E-COMMERCE AND E-COMMERCE ACTIVITIES IN
VIETNAM ...............................................................................................................10
2.1.
GENERAL INFORMATION OF E-COMMERCE .................................10
2.1.1.
Fundamental concepts ....................................................................10
2.1.1.1. Traditional Commerce ..................................................................10
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2.1.1.2. E-Commerce..................................................................................10
2.1.1.3. E-Commerce transaction ..............................................................11
2.1.1.4. Parties involved in E-Commerce ..................................................11
2.1.1.5. Characteristic of E-Commerce .....................................................13
2.1.1.6. Advertising in E-Commerce .........................................................13
2.1.1.7. Website and E-Commerce website ...............................................14
2.1.1.8. Customer Service ..........................................................................14
2.1.1.9. General differences between E-Commerce and Traditional
Commerce .....................................................................................................15
2.1.2.
Benefit and limitation of E-Commerce ..........................................15
2.1.2.1. The benefit.....................................................................................15
2.1.2.1.1. To organizations .....................................................................15
2.1.2.1.2. To consumers ..........................................................................16
2.1.2.2. The limitation ................................................................................16
2.1.2.2.1. In technique ............................................................................16
2.1.2.2.2. In non-technical ......................................................................17
2.1.3.
Things to be noted when joining in E-Commerce ........................17
2.1.3.1. Security ..........................................................................................17
2.1.3.2. Electronic Payment .......................................................................17
2.2.
REAL SITUATION OF E-COMMERCE IN VIETNAM .......................18
2.2.1.
Infrastructure situation of E-Commerce ......................................18
2.2.1.1. Information technology ................................................................18
2.2.1.2. Human resources ..........................................................................19
2.2.1.3. Economy, society and policies ......................................................19
2.2.2.
Development of E-Commerce in recent years ..............................20
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CHAPTER III: REAL-LIFE EXPERIENCES, RECOMMENDATION AND
PETITIONS .............................................................................................................24
3.1.
GENERAL VIEW OF INTERNSHIP PROCESS ....................................24
3.1.1
Primary mission ...............................................................................24
3.1.2
Advantages and difficulties when researching .............................24
3.1.2.1. Advantages ....................................................................................24
3.1.2.2. Difficulties .....................................................................................24
3.2.
EFFECTIVENESS OF E-COMMERCE ACTIVITIES IN HAU PHONG
CO., LTD...............................................................................................................25
3.2.1
Infrastructure ..................................................................................25
3.2.1.1. Human resources ..........................................................................25
3.2.1.2. Equipment .....................................................................................25
3.2.2
Success of Hau Phong Co., Ltd in applying E-Commerce ..........26
3.2.3
Remarks on E-Commerce of the company ...................................27
3.3.
ANALYZING CUSTOMER SERVICE FEATURES ON E-
COMMERCE WEBSITE OF HAU PHONG CO., LTD......................................29
3.3.1
General analysis ...............................................................................29
3.3.1.1. On the content ...............................................................................29
3.3.1.2. On the form ...................................................................................30
3.3.1.3. On the texture................................................................................30
3.3.2
Applying “PACT” formula to Customer Service .........................30
3.3.2.1. Process ...........................................................................................30
3.3.2.2. Attitude ..........................................................................................31
3.3.2.3. Communication .............................................................................31
3.3.2.4. Time ...............................................................................................31
3.3.3
Purchase and payment process ......................................................32
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3.3.4
Search engine ...................................................................................34
3.3.5
Customer care ..................................................................................35
3.3.6
Customer relationship management ..............................................36
3.4.
ANALYZING THE DEVELOPMENT TRENDS OF E-COMMERCE .37
3.4.1
Forecast in the near future .............................................................37
3.4.2
Development trends of E-Commerce .............................................38
3.4.2.1. Social Commerce ..........................................................................38
3.4.2.2. Flash Sales ....................................................................................38
3.4.2.3. Discount Codes .............................................................................39
3.4.2.4. Mobile Optimization .....................................................................39
3.4.2.5. International Buying ....................................................................40
3.5.
SHORTCOMINGS OF E-COMMERCE AND THEIR CAUSES ..........40
3.6.
STUDY RESULTS ...................................................................................41
3.6.1
Theoretically ....................................................................................41
3.6.2
Practically .........................................................................................41
3.7.
PETITIONS AND RECOMMENDED SOLUTIONS .............................42
3.7.1
To the State ......................................................................................42
3.7.2
To the company ...............................................................................42
3.7.3
To the college ...................................................................................43
3.7.4
To the students .................................................................................44
CONCLUSION ........................................................................................................45
REFERENCE ..........................................................................................................46
INDEX ........................................................................................................................1
Index 1: The connection forms of the Internet throughout the country ..................1
Index 2: The information security measures by size of the enterprise ...................1
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Index 3: The situation applying Internet Banking over the years ...........................2
Index 4: The Mobile Banking model ......................................................................2
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LIST OF ABBREVIATIONS
M.A.
Master
IT
Information Technology
E-Commerce
Electronic Commerce
Hau Phong Co., Ltd
Hau Phong Limited Liability Company
EC
Electronic Commerce
E-Business
Electronic Business
E-Trade
Electronic Trade
EDI
Electronic Data Interchange
E-mail
Electronic Mail
C2C
Consumer to Consumer
C2B
Consumer to Business
B2C
Business to Consumer
B2B
Business to Business
B2G
Business to Government
G2B
Government to Business
G2G
Government to Government
C2G
Consumer to Government
G2C
Government to Consumer
URL
Uniform Resource Locator
HTML
Hypertext Markup Language
XHTML
Extensible Hypertext Markup Language
HTTP
Hypertext Transfer Protocol
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HTTPS
Hypertext Transfer Protocol Secure
GSO
General Statistics Office
Mb/s
Megabit per second
ICT
Information and Communication Technology
3G
Third-generation technology
MIC
Ministry of Information and Communication
Vinasa
Vietnam Software and information technology Services
Association
SCM
Supply Chain Management
RCM
Reliability Centered Maintenance
ERP
Enterprise Resource Planning
VND
Vietnamese dong
E-wallet
Electronic wallet
PACT
Process – Attitude – Communication – Time
VECOM
Vietnam E-Commerce Association
MOIT
Ministry of Industry and Trade
IDC
International Data Corporation
US
United States
M-Commerce
Mobile Commerce
QR code
Quick Response code
APA standard
American Psychological Association
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LIST OF TABLES, CHARTS & IMAGES
Tables
Table 2.1: Differences between E-Commerce and Traditional Commerce ..............15
Charts
Chart 1.1: Organizational chart ...................................................................................6
Chart 2.1: Parties involved in E-Commerce .............................................................11
Chart 2.2: The number of computers in business over the years ..............................21
Chart 2.3: The information safety measures are used in businesses .........................21
Chart 2.4: Percentage of the applying IT and E-Commerce software in the
businesses in 2011 .....................................................................................................22
Chart 3.1: Chart of the average monthly income of the company over the years.....26
Chart 3.2: Income of 6 months in early 2012 of the company .................................27
Images
Image 1.1: Hau Phong Company ................................................................................5
Image 1.2: The business fields of the company ..........................................................9
Image 3.1: Some products of Hau Phong Company .................................................32
Image 3.2: The message and detail information about your cart ..............................33
Image 3.3: Result of a successful search...................................................................34
Image 3.4: An unsuccessful search ...........................................................................34
Image 3.5: Advanced search .....................................................................................35
Image 3.6: Misa crm.net 2008 – Beta 21 ..................................................................36
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Instructor: Nguyễn Thị Nguyệt Ánh, M.A.
INTRODUCTION
0.1. RATIONALE FOR THE STUDY
Information Technology continues to bring about drastic changes in the world
as well as create a real revolution from every field of science and life. Applying IT
to economic activities will bring society long-term benefits.
Applying IT to production and business activities is not an exception.
Applying IT to commercial activities or E-Commerce is becoming the new trend.
And it is going to take the place of old business method gradually with a lot of
advantage.
However, E-Commerce is a new definition with developing countries in
general and Vietnam in particular. In Control work of State, this field is not also
perfect yet. Applying to companies or organizations is only survey and support for
traditional business or combine E-Commerce and for traditional business.
Developing of E-Commerce in Vietnam is facing up to a lot of difficult. It
requires objective research works about E-Commerce development rule. From these
researches, we can create and deploy strategy to develop this commercial activity
field.
The rising from those requirements, and wish that every people in Vietnam
will understand the importance of E-Commerce more and more profound, bring ECommerce to development national economy activities, improve and enhance
competition competence in integration environment; I decided to choose topic “ECommerce, necessity and development trend” for my internship and report topic.
In research process, my professional skill and time is limited, and real
conditions in Vietnam and thus my report can contain many defects, so I would like
to receive valuable constructive idea from the experts, the researchers, the teachers
and everybody for topic “E-Commerce, necessity and development trend” be
perfected.
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0.2. SIGNIFICANCE OF STUDY
E-Commerce has become a popular commerce method and increasingly
developed for recent years in Vietnam. Preeminent particularity of E-Commerce
helped everyone to save expenditures and to increase profits significantly. And it is
the main development trend of commerce in the world.
Although E-Commerce was present widely in our country, aware of its
necessity and effect was not complete. Vietnamese firms are still hesitating about
the power of E-Commerce.
From the result of statistical analysis in internship process, I realized that
Vietnamese firms in general and Hau Phong Co., Ltd in particular are interested in
long-term investment in E-Commerce services, especially enhancing activities
effectiveness of websites. One of those features is customer service.
According to Bezos, J. (1999), the founder of Amazon.com – the world
famous E-Commerce website, in normal, 30% human and financial resources of a
company are reserved for customer service division with a view to bringing
customer the comfort, 70% remains are reserved for marketing activities. But in
business online, you need 70% resources to bring customer the comfort and only
30% to broadcast about it. He considers that internet is the future of mankind; it is
not only a gigantic library, but also a wide market for business all type of product.
Customer care methods include technology support methods, check invoice,
and supply transport of goods status to useful classic feedback methods. Web users,
specially the people who pay for online services, often require the technology
supports and they want those requirements are responded quickly. Maybe the
customers who placed an order want to monitor their goods during transport
process, and the other customers want to supply company with the feedback or to
complain about the service they received. Customer care can create or damage the
online business effects.
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For this reason, research on E-Commerce to learn about its necessity and to
grasp its development trend is necessary.
0.3. STATEMENT OF PURPOSE
Following the development trends in E-Commerce, this report is considered an
important piece to help E-Commerce become perfect in Vietnam. To this opinion,
aside from learning about overview of E-Commerce and its matters, at the same
time researching on basic theoretical issues of E-Commerce website and customer
service features on E-Commerce website, I will also research on real situation
activities of customer service features on www.hauphong.com website and member
websites to bring a more detail comment.
From the results that I received, I will propose bravely some solution to
enhance activities effectiveness of customer support service on websites.
With these purpose of research, I hope that my report will bring the practical
results to help the business apply E-Commerce successfully.
0.4. LIMITATION
Because time is rather limited, research object in this report is E-Commerce
activities effective of Hau Phong Co., Ltd, especially customer cervice on websites
of the company. Research time is from January 1st 2012 until now.
0.5. METHODOLOGY
Searching and analyzing general information about E-Commerce
Learning about E-Commerce model of Hau Phong Co., Ltd, combine using
theory bases with research, inquire, and analyze data methods
Analyzing the website of Hau Phong Co., Ltd and its customer service
applications
Combining analyze data methods with internet tools
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0.6. RESEARCH PROCEDURE
Step 1: Choose the topic.
Step 2: Choose the company for internship.
Step 3: Approach the company to gain the information need.
Step 4: Take information from the other sources.
Step 5: Analyze information.
Step 6: Propose recommendations.
0.7. ORGANIZATION OF THE REPORT
This report includes 5 parts. They are the introduction, three chapters and the
conclusion.
The introduction describes the reason for choosing the topic and the
significance of the topic. At the same time, this part also brings out the overview
information of study topic.
Chapter 1 provides the background information of the company where the
practice was done.
Chapter 2 gives some general information of E-Commerce and shows the real
situation of E-Commerce activities in Vietnam.
Chapter 3 is my salutary experiences and recommended solutions to develop
E-Commerce.
The conclusion will summarize the study contents and result of the topic.
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Instructor: Nguyễn Thị Nguyệt Ánh, M.A.
CHAPTER I:
BACKGROUND INFORMATION OF
THE COMPANY
1.1.
OVERVIEW
Image 1.1: Hau Phong Company
Hau Phong Co., Ltd was established in March 26th 1996 with the first name
was Hoa Tap Private Company and the company’s head office was on Nguyen Chi
Thanh Street, District 11, Ho Chi Minh City. Under the leadership of Hong Chanh
Chi Director, the company achieved many great successes continually in business
activities. In 1997, the company moved its head office to 105B Ngo Quyen Street,
Ward 11, District 5 and the name of the company has been changed to Tan Hoa Tap
Private Company.
In early 2001, Vietnamese economy has opened the markets with the large
consumer market and industrial scale production has been developed, the company
renamed and converted business form to Hau Phong Co., Ltd. The company decided
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to open the branch in the North and develop a nationwide sale system. From August
31th 2010 onwards, Hau Phong Co., Ltd has introduced the official website:
http://hauphong.com
and
member
websites:
http://thietbidiengiare.com/,
http://satmynghe.net/, http://smc-hp.com/ and http://linked.asia/ to serve business
needs. And now, the company’s infrastructure was equipped to supply market needs
relatively.
Detail information:
 Company name:
Hau Phong Limited Liability Company
 International name:
Hau Phong Co., Ltd
 Address: 853 Ta Quang Buu Street, Ward 5, District 8, Ho Chi Minh City
 Tel:
08.5431.9670
 Fax:
08.5431.9680
 Email:
cskhhauphong@gmail.com
 Website: www.hauphong.com
1.2.
ORGANIZATIONAL STRUCTURE
Board of Members
Chairman of the
Board
Director
Finance and
Administrative
Accounting
and Personnel
Department
Department
Sales
Technology
Department
Department
Chart 1.1: Organizational chart
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1.2.1.
Instructor: Nguyễn Thị Nguyệt Ánh, M.A.
Board of Members
Board of Members includes the members; it is the highest organ of company’s
power.
Board of members has the power to decide the strategy of development and
annual business plan for the company; to elect, dismiss, and remove Chairman of
the Board.
Board of members decides organizational structure of the company; Board of
members has the power to modify, complement the company regulations.
1.2.2.
Chairman of the Board
Board of the Members elected Mr. Hong Chanh Chi as chairman of the board.
Chairman of the board prepares or organizes activity program for board of
members.
1.2.3.
Director
Mr. Hong Chanh Chi was elected to be director. Director is the operator for
daily business activities in the company; effectuate business plans and invested
projects of Hau Phong Co., Ltd.
1.2.4.
Finance and Accounting Department
Finance and Accounting Department act as an advisor for Director to perform
State management functions in finance and accounting, economic information,
analysis of economic activities, financial control in the company.
1.2.5.
Administrative and Personnel Department
Administrative and Personnel Department ensure that divisions and staffs in
the company operate correctly; recruit and develop the staff for the company needs;
build the regulations concerning salaries, rewards, punishments and the other
regulations for employees; manage assets, office equipment of the company.
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1.2.6.
Instructor: Nguyễn Thị Nguyệt Ánh, M.A.
Sales Department
Sales Department is responsible for actively seeking partners to develop the
distribution network and gradually expand the domestic market. This department
researches the markets, selects the key products, proposes a course of action for
development strategy, and boosts trade promotion activities.
1.2.7.
Technology Department
Technology Department assists Director in total quality management and
technical supervision, safety management, environmental sanitation, technical
planning, construction drawing design, construction quality control.
Hau Phong Co., Ltd selected E-Commerce as main business method, so
Technology Department always coordinate closely with Sales Department in sales
campaigns, promotional campaigns, and advertising campaigns.
1.3.
THE FIELDS OF BUSINESS
At present, Hau Phong Co., Ltd is in business in following field:
 Distributing Greenlight electric equipment and SMC ceiling fan: ballast,
lighting fixture, starter, inverter, industrial ceiling fan… SMC and Greenlight
will create a perfectly beautiful and original solution in every particular to
new building project such as Trade – Sports and Tourist Centre, Resort,
office building, hotel, restaurant…
 Hometrend fine arts steel: iron door, iron banister, iron flower, iron bed…
 Distributing decorative lamp: desk lamp, flash lamp…
 E-Commerce: “supply – demand” link.
With the principle “Prestige – Quality – Luxury – Modern – Supper saves”
and advanced IT tools, Hau Phong Co., Ltd is following a business online policy to
supply consumer with products quickly. At the same way, the company and the
consumer will avoid the risks and cut down considerable expenditures. The
company endeavors to bring consumer the best products and services.
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Image 1.2: The business fields of the company
With good quality products, special treatment and aftersales policy, attractive
discount, Hau Phong Co., Ltd hope to receive the support vigorously and long term
cooperation from the customer.
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CHAPTER II:
E-COMMERCE AND E-COMMERCE
ACTIVITIES IN VIETNAM
2.1.
GENERAL INFORMATION OF E-COMMERCE
2.1.1.
Fundamental concepts
2.1.1.1.
Traditional Commerce
Traditional Commerce or Trade is the transfer of ownership of goods and
services from one person or entity to another by getting something in exchange
from the buyer. Trade is sometimes called commerce or financial transaction or
barter. A network that allows commerce is called a market. Trade between two
traders is called bilateral trade, while trade between more than two traders is called
multilateral trade. (Wikipedia, Trade, 2011)
2.1.1.2.
E-Commerce
Electronic Commerce, commonly known as E-Commerce, EC, Online Trade,
Cyber Trade, E-Business, Paperless Commerce or E-Trade, refers to the buying and
selling of products or services over electronic systems such as the Internet and other
computer networks. Electronic commerce draws on such technologies as electronic
funds transfer, supply chain management, Internet marketing, online transaction
processing, electronic data interchange (EDI), inventory management systems, and
automated data collection systems. Modern electronic commerce typically uses the
World Wide Web at least at one point in the transaction's life-cycle, although it may
encompass a wider range of technologies such as e-mail, mobile devices and
telephones as well. (Wikipedia, Electronic commerce, 2011)
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2.1.1.3.
Instructor: Nguyễn Thị Nguyệt Ánh, M.A.
E-Commerce transaction
E-Commerce transaction includes 4 types:
-
Person to person: by telephone, Fax, or e-mail.
-
Person to computer: by direct connection, electronic form or World Wide
Web.
-
Computer to computer: by EDI, smart card, or barcode data.
-
Computer to person: by auto-mail, Fax, or e-mail.
(Tran H. V., 2010)
2.1.1.4.
Parties involved in E-Commerce
Consumer
Consumer
Business
Government
Business
Government
Chart 2.1: Parties involved in E-Commerce
E-Commerce transactions are constituted of three parties: consumer, business
and government. These transactions include the following models:
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Consumer to Consumer E-Commerce (C2C): This model is done through
the purchase and sale forms directly between the customers via the personal
website, phone, and e-mail. In other words, C2C involves the electronically
transactions between the consumers through some third party. A common example
is the online auction, in which a consumer posts an item for sale and other
consumers bid to purchase it; the third party generally charges a flat fee or
commission. The sites are only intermediaries. (Tran H. V., 2010)
Consumer to Business E-Commerce (C2B) and Business to Consumer ECommerce (B2C): C2B is a business model, in which consumers (individuals)
create value, and firms consume this value. For example, when a consumer writes
reviews, or when a consumer gives a useful idea for new product development, that
mean this individual is creating value to the firm, if the firm adopts the input, the
firms can pay this individual a sum. B2C is a business model that the companies sell
their products or provide their services to end-consumers over the internet. (Tran H.
V., 2010)
Business to Business E-Commerce (B2B): B2B describes commerce
transactions between businesses, such as between a manufacturer and a wholesaler,
or between a wholesaler and a retailer. The volume of B2B transactions is much
higher than the volume of B2C transactions. The primary reason for this is that in a
typical supply chain there will be many B2B transactions involving sub components
or raw materials, and only one B2C transaction, specifically sale of the finished
product to the end customer. For example, an automobile manufacturer makes
several B2B transactions such as buying tires, glass for windscreens, and rubber
hoses for its vehicles. The final transaction, a finished vehicle sold to the consumer,
is a single B2C transaction. (Tran H. V., 2010)
Nonbusiness E-Commerce: There are a lot of non-business organizations
engaged in E-Commerce such as academic institutions, scientific agencies, nonprofit organizations, religious institutions, social organizations, government
agencies… Non-business E-commerce includes Business to Government ECommerce (B2G), Government to Business E-Commerce (G2B), Government to
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Government E-Commerce (G2G), Consumer to Government E-Commerce (C2G)
and Government to Consumer E-Commerce (G2C). Those none-business
organizations use E-Commerce to reduce their expenses, to improve their general
operation and customer services. (Tran H. V., 2010)
Intra business E-Commerce: This model includes all internal organizational
activities that involve the exchange of goods, services or information among various
units and individual in that organization. It is usually performed using intranets
within the organization (business). (Tran H. V., 2010)
2.1.1.5.
Characteristic of E-Commerce
E-Commerce transactions are paperless transaction. All of the text files or
documents must be put down in digital data.
E-Commerce is dependent on technology and IT level of users. It is also
depended on degree of digitization of the economy.
E-Commerce has fast speed. The steps of the transaction process are
conducted via computer networks. Software services are increasingly perfect. They
make transaction time shorter.
(Wikipedia, Electronic commerce, 2011)
2.1.1.6.
Advertising in E-Commerce
Online advertising is a form of trade promotion that uses the Internet and
World Wide Web to deliver marketing messages to attract customers. Online
advertising include contextual ads on search engine results pages, banner ads, blogs,
rich media ads, social network advertising, interstitial ads, online classified
advertising, advertising networks and e-mail marketing, including e-mail spam.
(Wikipedia, Online advertising, 2009)
One major benefit of online advertising is the immediate publishing of
information and content that is not limited by geography or time. Online advertising
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Instructor: Nguyễn Thị Nguyệt Ánh, M.A.
allows for the customization of advertisements, including content and posted
websites.
2.1.1.7.
Website and E-Commerce website
A website, also written as web site, or simply site, is a set of related web pages
containing content such as text, images, video, audio, etc. A website is hosted on at
least one web server, accessible via a network such as the Internet or a private local
area network through an Internet address known as a Uniform Resource Locator
(URL). All publicly accessible websites collectively constitute the World Wide
Web. (Wikipedia, Website, 2010)
A webpage is a document, typically written in plain text interspersed with
formatting instructions of Hypertext Markup Language (HTML, XHTML). A
webpage may incorporate elements from other websites with suitable markup
anchors. (Wikipedia, Website, 2010)
Webpages are accessed and transported with the Hypertext Transfer Protocol
(HTTP), which may optionally employ encryption (HTTP Secure, HTTPS) to
provide security and privacy for the user of the webpage content. The user's
application, often a web browser, renders the page content according to its HTML
markup instructions onto a display terminal. (Wikipedia, Website, 2010)
E-Commerce website is a dynamic website with advanced features that allows
online transactions such as shopping cart, ordering, online payment, customer
management, order management ... etc.
2.1.1.8.
Customer Service
Customer service is the provision of service to customers before, during and
after a purchase. According to Turban, E. (2002), "Customer service is a series of
activities designed to enhance the level of customer satisfaction – that is, the feeling
that a product or service has met the customer expectation."
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Customer service plays an important role in an organization's ability to
generate income and revenue. From that perspective, customer service should be
included as part of an overall approach to systematic improvement. A customer
service experience can change the entire perception a customer has of the
organization.
2.1.1.9.
General differences between E-Commerce and Traditional
Commerce
E-Commerce
E-Commerce
involves
Traditional Commerce
buying
and Traditional Commerce involves physical
selling of goods and services on the
exchange of goods and services.
internet.
E-Commerce means anytime, anywhere Traditional Commerce is restricted to
service. (It provides 24 hours
working.
online service)
doesn’t
E-Commerce
require Traditional
Commerce
requires
involvement of wholesaler and
involvement of wholesaler and
retailer.
retailer.
E-Commerce frees staff from customer Traditional Commerce needs a large
service and sales support.
number of staff who provides
customer service and sale support.
Table 2.1: Differences between E-Commerce and Traditional Commerce
2.1.2.
Benefit and limitation of E-Commerce
2.1.2.1.
The benefit
2.1.2.1.1. To organizations
E-Commerce expanded the scope of transactions worldwide. With a minimum
capital, the firms can approach a lot of customers easily and quickly, select the best
suppliers and determine the suitable business partners.
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E-Commerce makes reducing the cost to gather, process, store, and use
information; reducing the course of time of the purchase and sale process.
E-Commerce contributes to lessen the inventory and requirements in material
facilities by applying “pull”-type supply chain management method. It also
contributes to improve the image of the business, to enhance the customer service
quality.
The firms will provide the after-sales services better and more convenient.
2.1.2.1.2. To consumers
E-Commerce allows consumers to purchase in anytime, anywhere. It provides
customers with much option.
E-Commerce makes customers reducing the cost of products or services that
they received. Customers can compare to choose the fastest supplier and best price.
E-Commerce creates conditions for customer to influence mutually in ebusiness community.
Consumers will enjoy the after-sales services better.
2.1.2.2.
The limitation
2.1.2.2.1. In technique
There are no international standards for quality, safety and reliability.
Internet connection speed has not met the requirements of users, especially in
E-Commerce.
The software tools are still in development stage.
It is difficult to incorporate E-Commerce software with other software
applications and traditional database.
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There should be the servers of E-Commerce especially in terms of capacity
and safety. And it requires additional investment costs.
Internet access costs remain high.
2.1.2.2.2. In non-technical
Security and privacy are two psychological barriers to participants in ECommerce.
Customers are lack of trust in E-Commerce and sellers by not having direct.
Many matters of law, policies, and taxes are unclear.
Conversion of consumer habits need much time.
The number of fraud is increasing due to the characteristics of E-Commerce.
The number of participants in E-Commerce isn't large enough to achieve
advantages in scale.
2.1.3.
Things to be noted when joining in E-Commerce
2.1.3.1.
Security
Joining in E-Commerce means that the system is connected to the global
network and thus the system can be attacked at any time if there is not a strong
security mechanism.
In addition, information is transmitted over the internet through a lot of stage.
It is difficult to control and vulnerable. Therefore, information needs to be
encrypted by the sender and the receiver must know how to decode it.
2.1.3.2.
Electronic Payment
In E-Commerce, the payment process is paramount. Method of payment must
be suitable, efficient, and reliable. At the same time, payment information of
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customers must be maximum security. Payment method also depends on the
payment object: Payment method of the individual will be different to the business.
2.2.
REAL SITUATION OF E-COMMERCE IN VIETNAM
2.2.1.
Infrastructure situation of E-Commerce
2.2.1.1.
Information technology
Many years ago, IT was a completely new concept to people in Vietnam, and
its applications were not widely. However, in recent years, IT has boomed in our
country. It has created a solid infrastructure for E-Commerce development.
Currently, most agencies and organizations have put IT into their operating
procedures. The data structure has been managed by many different database
management systems.
Sales of IT equipment increased. Many companies have invested in the fields
of IT to business. It was through the intranet and the internet that the management
of some branches has been computerized.
After 15 years from the date that Vietnam has connected to global internet, the
number of internet users in the country increased significantly. According to GSO,
until November 2010, the total number of internet users in Vietnam was 27.3
million, making up 31.7% of the population. Report on the situation of IT
application in 2011 of the United Nations, Vietnam ranked 83/190 countries, up 7
ranks from the results two years ago, and the internet connection speed is 1.7Mb/s.
However, the Vietnamese software industry has not developed yet. Status of
software piracy is widespread. This discourages creativity of programmers. Despite
the high in speed of internet connection, its quality is not ensured stability. The
safety and security system is not good. I hope that our country will overcome the
shortcomings to promote IT development in the next stage.
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2.2.1.2.
Instructor: Nguyễn Thị Nguyệt Ánh, M.A.
Human resources
Developing E-Commerce needs qualified human resources respectively. For
many past years, the State and the organizations developed the teams of experts in
IT, regularly update the knowledge of IT and able to put into application in the
specific environment and business conditions.
According to ICTnews, Vietnam has 15% of the population using 3G. And
according to Net Index 2011, percentage of internet users in Vietnam has surpassed
radio and newspapers. In statistics of the MIC in 2010, the number of colleges and
universities training in ICT is 277. According to statistics of Vinasa 2009, total IT
manpower of our country is 250,000; 50,000 of them working in the field of
software and digital content.
However, according to the survey of Consumer Probe 2011, the Bachelor of
IT and internet users in Vietnam are still limited foreign language skills, especially
English. Meanwhile, internet users lack also the skills and knowledge of online
safety.
2.2.1.3.
Economy, society and policies
After 15 years of innovation, Vietnam has gained remarkable achievements in
the field of economic. Economy was basically stable, out of the crisis, achieved
growth rates due to macro-economic reform. The exports of goods increased
rapidly. These achievements of economy have improved and raised living
standards.
However, business methods are outdated, not formed standard systems.
During innovation, the national economy is shifting to an open economy. But it is
still not enough to meet the requirements of the digital economy.
The legal system for E-Commerce is in the process of formation. Most people
are used to transacting in writing, purchasing and paying directly. These habits
make difficult for e-commerce.
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2.2.2.
Instructor: Nguyễn Thị Nguyệt Ánh, M.A.
Development of E-Commerce in recent years
Period 2001 - 2010 are considered decades of E-Commerce in Vietnam. In the
end of 2010, basic infrastructure for E-Commerce applications in Vietnam has been
formed. 2011 was a pivotal year for Vietnam E-commerce, marking the end of 5
years of applying the overall plan to develop e-commerce from 2006 to 2010 and
the start of a new period.
In the last 5 years, legal framework for E-Commerce Vietnam has basically
formed with a series of documents from the laws, decrees and circulars to adjust
various aspects of applying IT and E-Commerce. Civil Law and Commercial Law,
the two core documents regulate activity of trade, have acknowledged the validity
of electronic transactions through the recognition of data messages and expression
forms of electronic transactions. The legal framework for electronic transactions in
general and E-Commerce in particular has been formed with the Electronic
Transactions Law and Information Technology Law, eight decrees, and a series of
detail circulars for the specific aspects of electronic transactions in each specific
application.
And after years of innovation, the scale of E-Commerce has been extended.
Businesses have a fuller awareness of E-Commerce. According to Vietnam ECommerce Report 2011:
100% of businesses are equipped with computers.
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Percentage
80%
Instructor: Nguyễn Thị Nguyệt Ánh, M.A.
72%
70%
60%
50%
56%
50%
47%
2008
2009
40%
2010
30%
23% 23%
20%
16%
20%
2011
21% 21%
16%
9%
10%
8%10%6%
3%
0%
1 to 10
11 to 20
21 to 50
more than 50
Computers
Chart 2.2: The number of computers in business over the years
As of December 31th 2010, 97.3% of businesses have connected to internet.
This rate increased significantly (91.6% in 2008). Most businesses and consumers
have known great benefits of E-Commerce, but they have not applied or applied at
low rates due to fears of the risks involved in online transactions.
100%
92%
90%
80%
70%
60%
50%
40%
37%
30%
22%
20%
14%
10%
0%
Firewall
Software
Hardware
Digital signature
Chart 2.3: The information safety measures are used in businesses
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Online business requires staff with appropriate qualifications. According to
this report, 23% of businesses have E-Commerce staffs. This rate is equivalent to
2010.
The trend of modern business in the world as well as in Vietnam requires that
all businesses need a website. Percentage of businesses with a website is an
important indicator to assess the level of applying E-Commerce. Excluding the error
in the surveys over the years, we can see that the percentage in 2011 did not change
significantly. The country generally has about 30% of businesses having websites.
Deployment of E-Commerce is closely related with the using of software in
the process of production and business activities, from the common office software
to the complex software such as resource management, supply chain management
or customer relationship management. Also according to Vietnam E-Commerce
Report 2011, we have the following chart:
Office Software
88%
Accounting Software
11% 1%
79%
Personnel Software
19%
21%
78%
2%
1%
Yes
No
SCM
17%
79%
4%
RCM
15%
81%
4%
ERP 4%
0%
92%
20%
40%
Unknown
4%
60%
80%
100%
Chart 2.4: Percentage of the applying IT and E-Commerce software in the
businesses in 2011
In general, the structure of investment in IT in 2011 does not differ with 2010
and does not have any signs of a landmark change. But the businesses appreciated
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highly the powerful impact of e-commerce in expanding contact channels with
customers and promoting business image. This can be seen as a promising future of
E-Commerce in Vietnam.
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CHAPTER III:
REAL-LIFE EXPERIENCES,
RECOMMENDATION AND PETITIONS
3.1.
GENERAL VIEW OF INTERNSHIP PROCESS
3.1.1
Primary mission
During my internship period, I have practiced as an E-Business staff. My tasks
were to maintain the existing business relationships, accept orders, and establish the
new business relationships; check product quality with customers; learn about
customer needs, and search for potential customers.
3.1.2
Advantages and difficulties when researching
3.1.2.1.
Advantages
In the past internship process, I have received many enthusiastic help of
instructor, and the same time, Hau Phong Co. Ltd has constantly supported me. This
helped me get valuable information about E-Commerce.
In recent years, the State as well as Hau Phong Co., Ltd has achieved great
achievements in applying E-Commerce. The State has officially opened for ECommerce, material facilities have improved. Even though everything has not been
perfected yet, but they also partly meet the requirements of E-Commerce. Hau
Phong Co., Ltd formally adopted E-Commerce in business activity. The company
has built the infrastructure that enough to meet the E-Commerce activities. These
achievements help me get a rich data resource for my researches.
3.1.2.2.
Difficulties
Although data resources on E-Commerce are very rich, they are very sketchy
and lack orientations. They make difficulties for me to synthesize and analyze data.
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The E-Commerce data in Vietnam is updated slowly from the actual situation which
leads to many errors.
Although the company understood the benefits of E-Commerce and has
determined that online business is the focus business methods, the company still
relies heavily on traditional business. Data analysis does not, therefore, ensure yet
objectivity.
There is many information concerning the internal situation of the company is
not provided. It causes many limitations for the collection of information.
3.2.
EFFECTIVENESS OF E-COMMERCE ACTIVITIES IN HAU PHONG
CO., LTD
3.2.1
Infrastructure
3.2.1.1.
Human resources
Since determining E-Commerce was the main business method, Hau Phong
Co., Ltd has focused to invest finance in it, especially developing human resource.
The staffs of technology department, sales online division, and customer care
division must be having knowledge of IT, especially the staffs of sales online
division.
Currently, Hau Phong Co., Ltd has over 10 online sales staff. In addition to the
understanding of IT, these online sales staffs are also experienced in E-Commerce.
The number of staffs and their ability are adequate to meet the requirements of ECommerce for a small and medium-sized enterprise.
3.2.1.2.
Equipment
Along with developing staffs, Hau Phong Co., Ltd also focuses to invest in the
purchase equipment. Currently, the company has a high-speed Internet transmission
line and more than 20 powerful computers. The company also invested in ECommerce software.
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3.2.2
Instructor: Nguyễn Thị Nguyệt Ánh, M.A.
Success of Hau Phong Co., Ltd in applying E-Commerce
Although Hau Phong Co., Ltd. was established in 1996 but due to many
objective conditions, until 2010, the business method of the company has been
changed to E-Commerce.
Although the company business in the E-Commerce field only two years,
things that E-Commerce brought the company is great. Before 2010, the average
monthly turnover of the company was about 650 million VND. After applying the
E-Commerce method, revenues have increased significantly. Currently, the
company earns more than 1 billion VND per month.
In million VND
1050
1009
1000
946
950
900
850
813
800
768
750
700
650
672
637
600
2007
2008
2009
2010
2011
In early 2012
Chart 3.1: Chart of the average monthly income of the company over the years
After the recession, the company income was stable again. In early 2012 is
rehabilitation period of the company. According to report of two quarter in early
2012, company's total income is 6.562 billion VND. Average monthly salary of
each staff was about 6,500,000 VND.
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In million VND
1150
1124
1098
1100
1073
1050
1023
998
989
1000
950
Jan
Feb
Mar
Apr
May
Jun
Chart 3.2: Income of 6 months in early 2012 of the company
Previously, the company's customers are mainly the longtime customers,
typically business. Since E-Commerce was applied, the business scale of the
company has been enlarged. Every day, there are hundreds of visitor accesses to the
company's website. Thanks to E-Commerce website, Hau Phong Co., Ltd has
attracted attention and interest of many new clients, especially individual clients.
According to a survey of the company, after applying E-Commerce to
business, most customers were very satisfied with the services of the company.
Thus we can see that E-Commerce has brought Hau Phong Co., Ltd a new face.
3.2.3
Remarks on E-Commerce of the company
With the successes that the company has achieved in applying E-Commerce as
well as considering the current economic conditions, the company recognized that
E-commerce is a potential market. And that is the trend of modern economy.
According to Mr. Hong Chanh Chi, director of Hau Phong Co., Ltd, in 2011,
economic was difficulties, however, not only E-Commerce was not affected, but it
also develops more. It is because businesses need to find new revenue sources that
are beyond geographical barriers, and consumers are more careful with purchase
activities to curb expenses. Therefore, two this object has shifted to the form of the
buying and selling online in order to save costs as well as get more convenient.
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Talking about the development of E-Commerce, firstly, we must mention the
development of the online payment gateway. In 2011, the company has witnessed
significant improvements of the online payment system and e-wallets in Vietnam.
In Vietnam, the E-Commerce trend on mobile is expected to boom from 2012
onwards. Many businesses provide digital content services on mobile devices are
focusing on the mobile payment (banks, e-wallet) and mobile marketing solutions
(Naiscorp, Gapit).
In the last 2 years, group purchasing was also grown, besides the online
payment. This method is beneficial because the sellers can sell more goods and the
buyers are benefited in price. In recent years, however, this purchase form begins
also to show some weaknesses when consumers complained about the quality of
service that caused loss of their confidence.
In 2012, probably there will be much volatility in the online market. The
group purchasing websites that are insufficient capacity will have to retreat. The
group purchasing websites that are leading the market will have to have tighter
controls to ensure the interests of consumers.
In addition, the online retail market was also good progress in the past year but
it did not have a significant change. Some factors had been considered a major
obstacle for the deployment of E-Commerce a few years ago were mostly removed
in 2012. It was the elements in IT infrastructure, the legal validity of the electronic
contracts and electronic documents. Meanwhile, the barriers need to be resolved at
the present time is the elements in consumer confidence, personal information
security and consumer protection, dispute resolution in online transactions, the
formal human resources.
Solving these major barriers, E-Commerce will definitely boom.
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3.3.
Instructor: Nguyễn Thị Nguyệt Ánh, M.A.
ANALYZING CUSTOMER SERVICE FEATURES ON E-COMMERCE
WEBSITE OF HAU PHONG CO., LTD
3.3.1
General analysis
Currently, Hau Phong Co., Ltd has 5 websites altogether, including 1 website
to introduce about the company and 4 E-Commerce websites. These website
correspond
with
the
business
fields
of
the
company.
In
which,
www.thietbidiengiare.com, www.smc-hp.com, and www.satmynghe.net have
relatively similar structures, so in this section, I will only focus to analyze
www.thietbidiengiare.com website.
www.thietbidiengiare.com was officially opened on November 30th 2011. It
was developed based on Drupal. Drupal is an open source content management
platform. It’s built, used, and supported by an active and diverse community of
people around the world. Drupal allows us to easily organize, manage and publish
our content, with an endless variety of customization. This platform is considered
the best open source software in the world. Using the open source help the company
to save significantly costs to build the website. The company also gets the best out
of the advantages of Drupal to serve the business purposes of the company.
A good quality website should meet user requirements. It must satisfy three
conditions on the content, form and texture.
3.3.1.1.
On the content
The language of www.thietbidiengiare.com is Vietnamese. This is easily
understandable because Hau Phong Co., Ltd only focuses on the domestic market.
A very important point is content that must be updated regularly. A very
common error of the website in Vietnam is that people built it to bring up the
network, and then the site was forgotten. Such websites do not bring anything to the
enterprise, even counterproductive. Drupal source code provides Hau Phong Co.,
Ltd with many useful tools to update, change or add content. But, until now, the
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content of posts on www.thietbidiengiare.com does not change anything. This is a
serious fault of the company.
3.3.1.2.
On the form
Perhaps this is the most difficult point for the enterprises; our views on beauty
often do not the same. Sometimes you think it is beautiful, but the others are
motley; you think it is simply, the others think it is very characterless.
Although using Drupal, Hau Phong Co., Ltd has yet built for themselves an
eye-catching interface to users. Background website is slightly dark. Special point
of discomfort on www.thietbidiengiare.com is font error. www.thietbidiengiare.com
uses the Oswald and Sans serif fonts. These fonts do not support the Vietnamese
well. Using color in the page is not logical yet.
3.3.1.3.
On the texture
In terms of layout, www.thietbidiengiare.com can be considered reasonable.
The website uses the block layout style. Menus on the menu bar are quite flexible.
Viewers can find items that they need in 3 steps. Sorting content is also very
intuitive. We can see that the layout is a strong point of www.thietbidiengiare.com.
3.3.2
Applying “PACT” formula to Customer Service
In customer service, PACT will satisfy the customers and the company will
have more loyal customers. If you have a good Process, you will meet expectations
of customer. If your staffs have a positive Attitude, you will make customers
surprised. With effective Communication, you always provide enough information
for customers. If you perform process on Time, you will meet customers well. And
if you have the full PACT, you will bring pleasure to the customers.
3.3.2.1.
Process
Hau Phong Co. Ltd has a closely sales process from the stage of purchase to
delivery. After visiting the online store, if customers have questions, they can get
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support through the hotline; when you have selected a satisfactory product,
customers can purchase or order just in a few steps.
3.3.2.2.
Attitude
When you got a process; and if you want to operate it effectively, you need to
have an attitude. That is a zealous attitude. Coming to Hau Phong Co., Ltd, you will
feel that the all of staff here have a positive attitude when working. Each staff in the
company understands the work process, and they work to meet customer
expectations.
3.3.2.3.
Communication
Many companies have broken an efficient process and attitude by defects in
communication. This is showed clearly when the customer service staffs
communicate with customers.
Hau Phong Co., Ltd is always interested in human development, not only in
professional skills but also soft skills, especially communication skills. The staffs of
customer service division, including sales department and customer care division,
are often trained soft skills by the company.
Effective communication, both the internal and external customers, can help
the company overcome many difficulties in business. Equity in communication
helps you develop the knowledge; it shows that you are very well-versed in work.
3.3.2.4.
Time
Time is always the number one priority. In a busy world, time plays an
important role determining the satisfaction of customer. The quick action is always
appreciated more than delays with apologies.
Understanding these problems, Hau Phong Co., Ltd always looks for many
different ways to shorten time in every process. Delivering on time and resolving
timely are always noticed by the company.
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3.3.3
Instructor: Nguyễn Thị Nguyệt Ánh, M.A.
Purchase and payment process
To purchase or order at www.thietbidiengiare.com, you need to follow these steps:
Step 1: Login
If you have an account at www.thietbidiengiare.com, you can login to
purchase or order.
If you are a new customer and do not have an account, that is not problem, you
can skip this step. You will be created an account automatically after completing the
order.
Step 2: Searching for products
You can search for products by searching tool or through the catalog of the
site.
Once you have found satisfied product and you want to see more product
information, you can click on its picture to view product details.
Step 3: Purchase and payment
To purchase, you click on "Add to cart" button.
Image 3.1: Some products of Hau Phong Company
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The system will move to your cart and notify: “The goods have been added to
your cart”.
Image 3.2: The message and detail information about your cart
In here, you can delete selected items, change quantity, and enter the discount
code. If you want to continue shopping, select "Continue shopping".
To continue payment, select "Pay".
System continues to redirect to your order. You need to fill your personal
information and select "Review the order". The system will require you to enter
your payment account information. Currently, Hau Phong Co., Ltd accepts
payments by PayPal or Credit card. If this information is empty, the system will
count as you are ordering.
After completing the above tasks, the system will automatically update, send
email and call to confirm the purchase and payment.
Step 4: Order tracking
After completing step 3, the system will automatically create an account with
a corresponding email address. Customer will use this email to track orders or
purchases in the next time.
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3.3.4
Instructor: Nguyễn Thị Nguyệt Ánh, M.A.
Search engine
The search function of a website is very important. It is almost mandatory for
every website. It is not intended for beautifying the site; we used it to help users
find what they want. The search function on the site usually has a textbox and a
button for the users to enter keywords and search. If you want to search with more
terms, you can use the advanced search function.
At www.thietbidiengiare.com, the search function only works well with
Vietnamese. Suppose that, I search for keywords “đèn chùm”. Meanwhile, the
search function will analyze my keywords into “đèn”, “chùm”, “đèn chùm”, then it
will find, compare, retrieve, and display search results.
Image 3.3: Result of a successful search
If the suitable data are not found, the system will display a message
Image 3.4: An unsuccessful search
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In addition, we also can use the advanced search function to get better results.
Image 3.5: Advanced search
For keywords that there are no diacritic, almost search function does not work.
This is an annoying bug for all internet users.
3.3.5
Customer care
The interaction with customers is an important factor in building the brand. A
good customer service is a service that can draws the return of customers and gives
them pleasures, and they can share great experiences about your service with their
friends. So, Hau Phong Co., Ltd chose the customer care method by telephone is
perfect.
Every customer always wants that they are really important to the company. In
fact, many businesses often focus only on sales and caring for new customer. They
forget that the customers who have been using their products also need attention and
care. Or the businesses only care for customers and receive their information when
these customers call to hotline of customer care division. This customer care
method is passive. The businesses can only receive the feedback about quality of
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product or service, but they will not receive any share about the feelings of the
customers to them. With these opinions, Hau Phong Co., Ltd always actively
creates the linking with the customers.
In addition, Hau Phong Co., Ltd always learns about psychology and
expectations of customers. It is the first important element in any customer care
strategy of the company. Via the phone calls to the customer care division, the staffs
will receive the feedback from customers regarding the quality of service or
product, the promotion …. It helps sales department has sale activities and
programs in accordance with the customer's desire in an attempt to boost sales and
saving cost.
3.3.6
Customer relationship management
Applying customer relationship management software is really a cognitive
development. It helps Hau Phong Co., Ltd increase sales and brand value in an
attempt to foster sustainable development. Customer relationship management is
not only simply the application of technology, but it is also a tactics to learn about
the demands and behaviors of customers in order to build a relationship with them.
Currently, Hau Phong Co., Ltd is using Misa crm.net 2008 to manage the
customer relationship.
Image 3.6: Misa crm.net 2008 – Beta 21
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3.4.
Instructor: Nguyễn Thị Nguyệt Ánh, M.A.
ANALYZING THE DEVELOPMENT TRENDS OF E-COMMERCE
3.4.1
Forecast in the near future
E-commerce plays an increasingly important role in the operation of the
business. 2012 is forecasted to witness further development of different types of ECommerce in Vietnam.
According to economic experts, in 2011, Vietnam witnessed strong
development of E-Commerce. Many large companies in E-Commerce field in the
world such as Alibaba, Rakuten... have invested capital in Vietnam. “This trend
may be more pronounced in 2012. The fields of E-Commerce in Vietnam will
attract great attention of the leading E-Commerce companies in the world as well as
the foreign-invested enterprise want to deploy the E-Commerce activities in
business in Vietnam.”, VECOM Secretary-General Nguyen Thanh Hung
considered. The recent survey results of MOIT with respect to 200 firms showed
nearly 100% of the enterprises applied E-Commerce in different levels and scales.
According to IDC, Vietnam's IT sector will grow strongly in 2012. IDC
forecasts IT spending in Vietnam will reach 19.2% in growth rate. The total IT
market in Vietnam is expected to reach 3.25 billion US dollars in 2012. Smartphone
accounted for 9% of mobile market in Vietnam in the second quarter 2011,
corresponding to more than 400,000 units. With the appearance of the cheaper
smartphones, IDC predicts this number will increase sharply in this year; in the end
of 2012, Vietnam's smartphone market is forecasted to reach 2.7 million units. At
the same time, there will be about 26 million Internet users in Vietnam, accounting
for about 30% of the total population. The development of technology and online
activities will open up a range of opportunities. Electronic payment will have high
growth. Although the growth of the wired Internet is expected to slow down, the
wireless Internet can grow by around 50% from last year. Competition among
service providers will make 3G services more accessible in both urban and rural
areas because prices will drop. Along with the growth in the number of Internet
users, social network is also expected to increase.
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With such conditions, E-Commerce promises to have significant changes in
the near future.
3.4.2
Development trends of E-Commerce
The strong development of the Internet will motivate to promote business on
global scale. 2011 was one of the most successful years to date for E-Commerce.
According to recent research from comScore, in third quarter alone, U.S. spending
reached 36.3 billion US dollars, up 13 percent from a year ago. Additionally,
channels, such as M-Commerce, have had unprecedented success. Below
information will show the development trends of electronic commerce in 2012:
3.4.2.1.
Social Commerce
As social media platforms like Facebook continue to take off, the businesses
will become more aware of consumer digital activities. For example, when a
customer ‘likes’ a page on Facebook, the businesses can then identify her or him as
a potentially new customer who may not have interacted with the brand outside of
the social space. And with more than 800 million active users on Facebook, this
presents a clear opportunity that many companies will want to capitalize on as soon
as possible.
Taking advantage of social commerce strategies also helps the businesses
become more targeted in the delivery of special offers. Facebook and other social
media platforms will become the first step on the E-Commerce ladder for the
businesses that don’t want to build a whole website but want to start selling online
quickly.
3.4.2.2.
Flash Sales
In 2012, more businesses will launch limited-time offers as a way to boost
sales and incentivize consumers. With flash sales, customers who interact with the
brand online or via social media platforms such as Facebook will get priority access
to special deals.
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According to Zmags’ 2012 “Meet the Connected Consumer” report, 87
percent of consumers prefer to shop online, which means the businesses can expect
to see an immediate response through email campaigns, online advertising
techniques or social media campaigns.
Not only will this strategy serve as a new way for consumers to engage and
purchase from their favorite brands, but it’s also a way for businesses to reward
loyal customers and keep them coming back. If consumers believe they are more
likely to receive deals by participating in such promotions, they will continue to
interact with the brands online through flash sales. According to Nielsen’s 2011
Global Online Shopping and Saving Strategies Survey, 73 percent of North
American online consumers look for a deal when shopping online and 61 percent of
global online shoppers were found to value a deal over low price.
3.4.2.3.
Discount Codes
Over the past year, there has been a huge surge in the number of discount
codes accessed through mobile coupons and group buying strategies. The
businesses have found the new ways to reach consumers through companies like
GroupOn, with more than 50 million subscribers, which send deals and discount
codes straight to subscribers’ email inboxes. The popularity of discount codes for
consumers will continue to rise in 2012.
Businesses are also increasingly using QR codes as an E-Commerce strategy.
According to a recent info graphic on www.visual.ly, QR code increased a
whopping 4549 percent between first quarter 2010 and first quarter 2011. But, to
prove their worth, the businesses will need to become more sophisticated and offer
real value to entice late technology adopters. Educating consumers about QR codes
and how to use them may be also the bigger challenge.
3.4.2.4.
Mobile Optimization
M-Commerce is set to hit the mainstream next year and the businesses are
working to optimize their websites to create mobile versions. This includes
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developing payment pages or specific smartphone and tablet apps that have
payment pages already embedded within them. Until now, apps have re-routed
consumers to a website to complete purchases, but this is set to become integrated
as technology develops to support the payment process.
3.4.2.5.
International Buying
E-Commerce offers consumers more choice and businesses more opportunities
to widen the customer network beyond traditional boundaries. This will certainly be
a growing trend in 2012 and beyond. All size businesses are benefitting from this
wider customer base, especially smaller businesses that may have traditionally only
sold to consumers in their geographic region.
The businesses must take caution, however, when offering additional payment
methods, to be aware of further compliance requirements or necessary security
measures to avoid risk of fraudulent transactions.
Overall, E-Commerce and associated channels are developing rapidly. In the
coming years, we can expect to see a number of different developments that will
completely transform the way consumers purchase and interact with brands.
Technology, coupled with consumer appetite, provides a perfect catalyst for these
new trends to enter the mainstream.
3.5.
SHORTCOMINGS OF E-COMMERCE AND THEIR CAUSES
E-Commerce market in Vietnam is considered the potential market and
promise great progress in both width and depth. However, it is more than a decade
since E-Commerce appeared in Vietnam; most of E-Commerce websites are only as
a link for the buyers to understand the sellers’ information and transaction between
the parties is still dealing directly. This transaction is not enough binding force in
legally and there are many gaps to facilitate fraud. In fact, the online shopping in
Vietnam is still a lot of potential risk, such as the product does not match with
requirements, quality does not guarantee or problems in payment, the buyers and
the sellers do not have faith, etc.
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Its causes are many, but mainly due to the infrastructure for E-Commerce and
the awareness of participants are low; standards for e-commerce are still inadequate.
Currently, the phishing E-Commerce websites have appeared. This causes loss of
customer confidence in electronic transactions. There are also many businesses that
build the prestige through the quality of merchandise, caring for the customer by
consulting online and promotions. However, there still not has yet a real solution to
stimulate consumption.
3.6.
STUDY RESULTS
3.6.1
Theoretically
E-Commerce and its applications will continue to bring positive changes to
modern life. This report is the result of a careful research process on E-Commerce.
It has provided us with some concepts and basic theories. At the same time, it also
shows some of the nature, characteristics and importance of E-Commerce. In the
research process, we also see the infrastructure needed for development of ECommerce as well as the things that the company needs to pay attention when
joining in E-Commerce market.
The research at Hau Phong Co., Ltd has shown out the reality of applying ECommercial as well as the practical effect that it brings to the business. Thereby, we
can know the advantages, disadvantages and assessments of the business in the
process of applying, as well as the opportunities that E-Commerce brings to the
business.
3.6.2
Practically
Through the details analysis of the customer service features on E-Commerce
website of Hau Phong Co., Ltd; the businesses can learn a lesson in building an ECommerce website. The report also indicates the development trend of ECommerce, which helps business define suitable strategies for the actual situation.
Besides that, the report also shows out the weakness and shortcomings in control
strategies of the State and the business.
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3.7.
Instructor: Nguyễn Thị Nguyệt Ánh, M.A.
PETITIONS AND RECOMMENDED SOLUTIONS
3.7.1
To the State
In the report of the Ministry of Planning and Investment in May 2012, the
country has 468,300 businesses are operating, more than half of which has
electronic information site to promote their products. However, the current supply is
not sufficient to meet the needs of the job market. Currently, labor resources are
young and abundant; but they have not been trained methodically to have
knowledge and skills of E-Commerce operations. The State should have more open
policies to support the education branch solve problems in human resources, and
also focus to improve organizations on E-Commerce management, including the
establishment of specialized inspection committees, assignment officials to
strengthen the management capacity at local, etc.
Although the IT infrastructure in Vietnam has increased dramatically, that is
only the upside; in fact, the IT equipment is still backward, the software
technologies are updated slowly; they cannot afford to meet the new technologies.
The State need invests to switch to use the new equipment that it matches the
demands of modern technology.
For many years, the government has tried to build legal systems for ECommerce; although there are much improved, it is still not complete yet. Law
organizational methods and law enforcement is still limited. Many sanctions for
violations in the fields of E-Commerce are not enough power to deter offenders. In
the future, I hope that the State will soon complete the legal system to ensure the
rights of the parties in E-Commerce.
3.7.2
To the company
Most of the businesses equipped themselves with an IT system to serve their
business purposes. However, these equipment and software are outdated. It is no
longer able to meet the requirements of the new technology. This affects the overall
performance of the system. I suggest that the businesses should replace the old
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computer system with a new system that has higher performance. Furthermore, the
businesses should update the newer software.
In the context of the supply of manpower in the fields of E-Commerce is
limited, one of the current directions that I want to suggest is that the business
should arrange staffs who hold concurrently, recruit personnel who has experience
in the fields of E-Commerce or appoint staff to training. These directions will
contribute to solve current manpower problems. In the long term, however, it is not
the optimal approach.
For E-Commerce, website is the face of the company. Consumers come to the
company via the website. They do not need to know that company large or small.
They only pay special attention to the site and its contents. Therefore, the company
should build an impressive website for the customers. The site must be harmonious
in color and layout, new and precise in content, convenient in finding and
purchasing, and safe in payment.
In E-Commerce, all transactions are related to World Wide Web. Therefore, it
is likely to be attacked from outside. The problem that many people interested in
when joining in E-Commerce is security. What I want to mention here is the
personal information security of the parties that involved in transactions. Many
people feel unsafe when they pay online. The weaknesses of the security features
are the chances of hackers. This is the reason that consumers avoid E-Commerce
transactions. The businesses should choose a safe server and host system, strong
antivirus software and a multilevel firewall system; as the same way, they should
build features to encrypt the information transaction.
3.7.3
To the college
E-commerce is a new trend of the modern economy. Due to the duration of the
course on E-Commerce is too short, so most of the students are unfamiliar with this
concept. In the course of research on E-Commerce, lack of knowledge will cause
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difficulties for students. If possible, the college should increase the amount of
specialized courses on E-Commerce research.
During my internship, I realized that there are two issues that I think the
college should pay attention. First, it is the inconsistency in the guidance. There is
too much notice to guide students. But they do not agree with each other and also do
not clear. These cause difficulties for students to determine how the report format.
Second, that is the writing reports skill. During 3 years of study, there is not any
subject or any extracurricular activity to guide students how to write a report that
suits standards. When writing reports, we are really surprise and did not know how.
All students do not understand what the APA standard is? How to use it? Etc. From
these difficulties, I suggest the college should have a sample of detailed, consistent
and clear guidance. At the same time, the college should supplement the subjects
that it often writes the essays or reports; or arrange to guide students. These help
students know how to present a report correctly.
3.7.4
To the students
In the learning process, students should consolidate your knowledge of
computing. This is the necessary knowledge for each student after graduation. This
knowledge helps students a lot in the future.
Today, IT is an indispensable part of modern life. In addition, IT in general
and E-Commerce in particular always change; be sure that your knowledge is not
obsolete by you should always update news and learn about those changes.
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CONCLUSION
E-Commerce activities are no longer strange field for many countries because
of its preeminence. Applying E-Commerce to business activity is the unavoidable
trend of the digital age. Vietnam is not also exception. On the website, information
is disseminated very quickly; so if the customers highly appreciate the company’s
services, it is a valuable thing.
Through the research process, we can realize more clearly about the
monumentally important role of the customer services in applying E-Commerce.
Although newly in deployment, www.thietbidiengiare.com has got significant
results. It was partly the effectiveness of the customer services. Website has
provided customers with the most essential services such as search function,
shopping cart, customer care, etc.
However, due to the E-Commerce development in Vietnam has not really
completed; the infrastructure and the human resources are part weak, part missing,
so Hau Phong Co., Ltd is not able to provide yet customers with other services.
Therefore, developing and improving the performance of customer service on the
website is a necessity for companies. In the near future, the applications of ECommerce will bring exploits to the company. From that target, Hau Phong Co.,
Ltd will focus on investment in material facilities, equipment, human resources and
business strategies to build the best customer service; simultaneously, it can bring
the profits and enhance the prestige of the brand name for the company on the
market. Hau Phong Co., Ltd undertook that they will bring the products and
services with the best quality to the customers.
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INDEX
According to Vietnam E-Commerce Report 2011:
Index 1: The connection forms of the Internet throughout the country
2% 1%
19%
Dial
Private Network
ADSL
Not connect
78%
Index 2: The information security measures by size of the enterprise
95% 92%
100%
80%
60%
40%
55%
Large enterprise
39%
36%
27%
20%
22%
Small and medium
enterprise
13%
0%
Firewall
Software
Hardware
Digital
signature
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Index 3: The situation applying Internet Banking over the years
Years
The mount of the bank
2004
3
2005
5
2007
18
2008
25
2011
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Index 4: The Mobile Banking model
2