Vnet Analysis

E-business now becomes a popular concept even with someone who doesn’t work in this field. However, it’s better to make agreements in some terminologies and go from foundation about e-business.

Firstly, about the concept of e-business in the book “ Business Driven Technology”(Haag S, Baltzan P, Phillips A, 2006 ) e-business is the practice of performing & coordinating business processes through the extensive use of information technology (IT) .

It’s also stated in the book that there are four main areas in e-business that an organization should care when they want to operate in this field : direct marketing, selling, and services, financial and information services, maintenance, repair, and operations (MRO), intermediaries

Direct marketing, selling, and services

In order to be successful, in marketing , it’s better to create site visibility and demand in marketing , allow personalized content and adaptive selling processes, integrate with back-office in sale, providing services that automate customer service features such as customer feedback, customer inquires, tracking information, and customized services.

Financial and information services

Some of financial and information services available are online banking, online billing, secure information distribution.

Online banking : such as paying bills , making transfers between accounts, trading stocks, bonds, and mutual funds

Online billing : Internet-based bill delivery services saves money

Secure information distribution : Business can safeguard information

Maintenance, repair, and operations (MRO)

MRO goods include – office suppliers, office equipment, furniture, computers, and replacement parts. Internet transforms corporate purchasing from a labor-and paperwork-intensive process into a self-service application

Intermediaries

Intermediaries are agents, software, or businesses that bring buyers and sellers together that provide a trading infrastructure to enhance e-business.

E-marketplace in Vietnam.

According to the statistics of Electronic Commerce Department, Ministry of Ecommerce, from PC World Vietnam magazine ( " San jao dich thuong mai dien tu can hanh lang phap ly", 2004) Vietnam has about 20 B2Becommerce websites, divided in 2 groups.

The 1st group includes private enterprises. Because of limited resources (funds, human resource, infrastructure, source of information...) and the risk capability is very high, it’s hard to build large ecommerce b2b e-marketplace.

Examples: -www.vnet.com.vn from Vnet company;

-www.export.com.vn of the responsibility limited company Г‚u Viet;

-www.mekongsources.com Mekong Research corporation;

-www.worldtradeB2B.com: B2B Technology company

The 2nd group includes governmental enterprises:

Examples:

- www.vnemart.com.vn , website of Vietnamese Champer of commerce and industry (VCCI),

- www.thaibinhtrade.com (Thai Binh province),

- www.thuongmai.com.vn (Post Office of QuбєЈng Nam Province)

However, until now, E-commerce in Vietnam has not been really developed much. According to an investigation of Commerce Ministry in 2007, in 1000 enterprises, there is only 20-25% of them having websites in which 93.8% are marketing for company, 62.5% are introduction to products and services. While e-transaction feature, a part of e-commerce, just exist in 27.4% and 3.2% got online billing. (“Phương thức kinh doanh thời hội nhập” ,2007, quantrimang.com.vn).

According to deputy director of Vietnamese Champer of commerce and industry( VCCI), Tran Huu Linh, barriers for e-commerce in Vietnam are not IT infrastructure anymore because ADSL is working well and basis of law has already recognized electronic information. (“Phương thức kinh doanh thời hội nhập” ,2007, quantrimang.com.vn).

Vnnet.vn

Let’s take Vnnet.vn, an e-marketplace built by VNET Company, to be a specific example to illustrate for B2B model in Vietnam.

VNET operates on IT and E-commerce, is set up in May, 2001 with some initial functions as :

• Training, technology conversion in IT field.

• Develop informatics software

• Informatics service and e-commerce.

• IT consulting service

• Sale of IT, electric, electronics materials

• Selling agency,Buying and agency of taking goods on consignment.

Building e-market with 6 branches at some provinces like : Hanoi, Hai Phong, Thai Nguyen, Nam Dinh, Hai Duong,Hung Yen.

п‚— Vnet e-commerce website : first introduced in May, 2003 with 168 enterprise participating in 28 groups of products.

Reference

TMDT can hanh lang phap ly

http://www.pcworld.com.vn/pcworld/printArticle.asp?atcl_id=5f5e5c565c5c58

Phuong thuc kinh doanh thoi hoi nhap

http://www.quantrimang.com/view.asp?Cat_ID=21&Cat_Sub_ID=0&news_id=35694