VIETNAM NATIONAL UNIVERSITY, HANOI HANOI SCHOOL OF BUSINESS DOAN TRAN NHAN E-COMMERCE DEVELOPMENT IN AGRICULTURAL TRADE PROMOTION IN VIETNAM. MASTER OF BUSINESS ADMINISTRATION THESIS Hanoi, 2012 VIETNAM NATIONAL UNIVERSITY, HANOI HANOI SCHOOL OF BUSINESS DOAN TRAN NHAN E-COMMERCE DEVELOPMENT IN AGRICULTURAL TRADE PROMOTION IN VIETNAM. Major: Business Administration Code: 60 34 05 MASTER OF BUSINESS ADMINISTRATION THESIS Supervisor: 1. Tran Doan Kim 2.
Ha Nguyen, MBA Hanoi, 2012 ACKNOWLEDGEMENTS Electronic commerce (E-commerce) is a new field and showing great role in trade promotion, products trading through the global Internet. E-commerce can help businesses reduce costs because they can introduce to consumers about products and services through its own Website, frequently contact with their customers and learn about customer needs via E-mail, and conduct transactions directly with customers online. Moreover, businesses can attract the large customer because E- commerce is not limited by geography. The targeted consumers are not only domestic but also foreigners.
Due to benefits of E-commerce, now many companies over the world apply this model in their business operation. In Vietnam, according to E-commerce Report 2010 of the Ministry of Industry and Trade (MoIT), among more than 3400 enterprises surveyed are almost 100% of businesses applied E-commerce in different levels. The application of E- commerce has brought efficiency to the enterprise, especially in access to customers and operations management and sales. However, purchasing through E-commerce websites only popular for some kinds of goods and services such as airline tickets, electronics, cell phones, computers, books, tours, hotels, cosmetic, etc.
Trade promotion is the series of activities to promote the sale of the business in general and target market. Since the traditional trade promotion activities are geographically limited, higher costs and taking long time, so the application of E- commerce seems to overcome such drawbacks. In Vietnam agriculture, the E-commerce application is concerned, facilitated and clearly oriented by the Government agencies. Besides the traditional trade promotion activities are being applied in agriculture such as surveys, trade fairs and exhibitions.
E-commerce will create a new promotion method that is simple, convenient, fast and save cost. In the present, there are some Agri-businesses applying E-commerce in marketing activities and business of their products. Moreover, understanding the current trend of IT application, there are some i professional websites have built and they operate as the trading platform for Vietnam and foreign agricultural products. However, only a few businesses can achieve success from these activities and many websites have built with boring content, out of dated information, and the websites cannot attract customers to visit and deal with suppliers in the website.
During the MBA course at the HSB, I received the enthusiastic support from lecturers and guidance on methods of studying and working. Moreover, all of lecturers create good conditions to help me constantly expand, improve knowledge learned in practice. In the process of working in Trade Promotion Center for Agriculture (Agritrade), I have discovered and proposed research project “E-Commerce development in agricultural trade promotion in Vietnam” and developed this subject into my thesis. During the implementation of the subject, I have received much help from the lecturers, leaders, and staff of Agritrade.
Which I particularly thank: Lecturer: Ha Nguyen who has dedicated to guide me in the implementation process of this project. Nguyen Van Thang - Director of Agritrade who has created good conditions for me to complete this thesis, the research and given many ideas for my thesis. In the process of completing this thesis, by the terms subjective and objective can you also flawed. So I hope to receive guidance and comments from all lecturers.
I sincerely thank you! ii ABSTRACT E-COMMERCE DEVELOPMENT IN AGRICULTURAL TRADE PROMOTION IN VIETNAM. Doan Tran Nhan MBA Candidate, 2009 – 2011 School of Business – Vietnam National University, Hanoi Supervisors: Dr. Tran Doan Kim Ha Nguyen, MBA May 2012, 93 pages Subject “E-Commerce development in agricultural trade promotion in Vietnam” is based on actual duties of the author at the Trade Promotion Center for Agriculture (Agritrade). This is a unit under the Ministry of Agriculture and Rural Development and they responsible for planning and implementation of trade promotion programs for Vietnam agricultural sector; consulting agricultural policies on the export promotion and trade development; and supporting businesses in developing markets.
Based on the concept of E-commerce and trade promotion, the macro environment analysis; the real situation of E-commerce development in Vietnam, and operation of Agritrade, author has proposed the solutions of applying suitable E-commerce model for trade promotion activities in agricultural sector, thereby helping to promote agricultural enterprise’s image, expanding market and searching for a sustainable business contracts, moreover, helping Agritrade implementation more successful their political duties. Structure of this thesis including: - Chapter 1: Theoretical framework. - Chapter 2: Background and Real situation of Agricultural trade promotion of AGRITRADE. - Chapter 3: Conclusion and the proposal solution of E-commerce development for Agritrade.
iii TÓM TẮT PHÁT TRIỂN THƢƠNG MẠI ĐIỆN TỬ TRONG XÚC TIẾN THƢƠNG MẠI NÔNG NGHIỆP TẠI VIỆT NAM. Đoàn Trần Nhân Khoa Quản trị Kinh doanh – Đại học Quốc gia Hà Nội Hƣớng dẫn: Ts. Trần Đoàn Kim ThS Hà Nguyên Tháng 5 năm 2012, 93 trang Đề tài “Phát triển thươ ng maị điêṇ tửtrong xúc tiến thương maị nông nghiêp̣ taị Việt Nam” đƣợc thực hiện dựa trên thực tế nhiệm vụ công tác của tác giả tại Trung tâm Xúc tiến thƣơng mại Nông nghiệp (Agritrade). Đây là một đơn vị trực thuộc Bộ Nông nghiệp và Phát triển nông thôn có nhiệm vụ lập kế hoạch và thực hiện các chƣơng trình xúc tiến thƣơng mại cho ngành nông nghiệp Việt Nam; tƣ vấn xây dựng các chính sách nông nghiệp về xúc tiến xuất khẩu và phát triển thƣơng mại; hỗ trợ các doanh nghiệp trong phát triển thị trƣờng.
Dựa trên các khái niệm về thƣơng mại điện tử và xúc tiến thƣơng mại; các phân tích môi trƣờng vĩ mô; thực trạng phát triển thƣơng mại điện tử tại Việt Nam; và hoạt động của Agritrade, tác giả đã đề xuất giải pháp ứng dụng thƣơng mại điện tử phù hợp cho hoạt động xúc tiến thƣơng mại ngành nông nghiệp, qua đó giúp cho các doanh nghiệp nông nghiệp quảng bá hình ảnh, mở rộng thị trƣờng và tìm kiếm các hợp đồng kinh doanh bền vững, đồng thời giúp Agritrade thực hiện thành công hơn các nhiệm vụ chính trị của mình. Kết cấu của đề tài bao gồm: - Chƣơng 1: Cơ sở lý luận. - Chƣơng 2: Bối cảnh và thực trạng hoạt động xúc tiến thƣơng mại nông nghiệp của AGRITRADE. - Chƣơng 3: Kết luận và đề xuất giải pháp phát triển thƣơng mại điện tử tại Agritrade.
iv TABLE OF CONTENTS ACKNOWLEDGEMENTS.iv TABLE OF CONTENTS. v LIST OF ABBREVIATIONS.vii LIST OF TABLES, FIGURES, CHARTS, DRAWINGS. The imperative of subject. Establish the main research subject.
Delimitation of the research’s contents. The basic elements of E-commerce model. Assign content to develop E-commerce model for Agritrade. Data collection methods.
Data analysis methods.7 CHAPTER 1: THEORETICAL FRAMEWORK. The concept of E-commerce. Characteristics of E-commerce. The formation of E-commerce.
The reasons of E-commerce. The formation of E-commerce. The situation of E-commerce development in Vietnam. The operation forms and E-commerce transactions.
The forms of E-commerce activities.2 Transaction forms of E-commerce. Benefits of E-commerce for businesses. E-commerce reduces costs. Impact on enterprise architecture.
The E-commerce requirements. Security and safety. Automatic Financial payment system. Economic and legal infrastructure.
Definition and content of Trade promotion. The purposes of trade promotion. Types of Trade Promotions. Trade Promotion in E-commerce.
The difference of E-commerce applications in agricultural trade promotion.33 CHAPTER 2: BACKGROUND AND REAL SITUATION OF AGRICULTURAL PRODUCTS PROMOTION OF AGRITRADE. Overall assessment of domestic market for Agricultural product. Overall assessment of agricultural trade promotion activity of Agritrade. Overview of Trade Promotion Center for Agriculture (Agritrade).
Agritrade’s main missions:. Recent years’ Main Activities:. Overview of agricultural trade promotion activities of Agritrade. Assessing the impact of external environmental factors to E-commerce application at Agritrade.
Impact of economic environment. Impact of political legal environment. Impact of socio-cultural environment. Infrastructure and Internet services for E-commerce.
Human resources for E-commerce. Assessing the impact of internal environmental factors to the E-Commerce applications in trade promotion activities of Agritrade. Impact of human resources. Impact of financial resources.
Impact of technology infrastructure. Analysis the results of survey and discussions. The results of survey. Results of expert interviews.
75 CHAPTER 3: CONCLUSIONS AND THE PROPOSAL SOLUTION OF E-COMMERCE DEVELOPMENT FOR AGRITRADE. The conclusions and findings through the research process. The achievements and limitations of Agritrade. The findings of the research process.
Orientation and perspective of development of Agritrade in the future. Development orientation of Agritrade. Agritrade’s views on the E-commerce application. Proposal solutions of deploying E-commerce application in Agritrade.
Group of Human Resource solutions. Solutions related to infrastructure and technology. Solutions related to business processes. Solutions related to electronic marketing promotion.
The other solutions:. 91 LIST OF REFERENCES. 94 vi LIST OF ABBREVIATIONS ARPANET Advanced Research Projects Agency Network Agritrade Trade Promotion Center for Agriculture APEC Asia-Pacific Economic Cooperation B2B Business – to – Business B2C Business – to – Consumer C2C Consumer – to – Consumer E – commerce Electronic Commerce ECM Enterprise content management EDI Electronic Data Interchange GSO General Statistics Office Of Vietnam IT Information Technology MARD Ministry of Agriculture and Rural Development MoIT Ministry of Industry and Trade MRO Maintenance, repair and operation. UNCITRAL United Nations Commission on International Trade Law VAN Value Added Network VECITA Vietnam E-Commerce and Information Technology Agency WTO World trade Organization vii LIST OF TABLES, FIGURES, CHARTS, DRAWINGS Tables The basic elements of E-commerce model for agricultural Table 0.1 Page 4 trade promotion Table 2.1 Vietnam Rice production and exporting (2000 – 2009) Page 34 Table 2.2 Domestic consumption of cashew nut (1995-2010) Page 35 Table 2.3 East Asia and the pacific: GDP growth projections Page 47 The reason for not participating in online purchases of Table 2.4 Page 58 households in Hanoi in 2010 Table 2.5 Survey summarizing Page 64 Table 2.6 Summary of survey results (Part 1): Page 64 Table 2.7 Summary of survey results (Part 2) Page 66 Evaluation of Agritrade’s employees about necessary Table 2.8 Page 69 level of contents of E-commerce application Table 2.9 Summary of survey results (Consumers) Page 70 Table 2.10 Summary of survey results (Suppliers) Page 72 Evaluation of Agritrade’s customers (consumers and Table 2.11 suppliers) about necessary level of E-commerce Page 73 application Evaluation of Agritrade’s customers (consumers and Table 2.12 suppliers) about necessary level of contents of E- Page 74 commerce application Charts Chart 2.1 Organization structure of Agritrade Page 40 viii Figures Figure 1.1 Models of E-commerce transactions Page 18 Figure 2.1 GDP quarterly growth from 2008 – 2010 Page 47 Figure 2.2 Monthly CPI development in 2010 Page 48 Evaluation of enterprises of obstacles to e-commerce Figure 2.3 Page 52 application Figure 2.4 Number of computers in enterprises through recent years Page 53 Figure 2.5 Computer usage in enterprises in different localities Page 53 Figure 2.6 Means of Internet access of households in Hanoi in 2010 Page 54 Figure 2.7 Households with computers per 100 households Page 54 Figure 2.8 Methods of Internet access of enterprises in 2009 Page 55 Number of E-commerce training schools between 2008 Figure 2.9 Page 59 and 2010 Figure 2.10 The proportion of E-Commerce schools by level Page 60 Figure 2.11 Enterprises’ IT and e-commerce training methods Page 60 for employees through recent years Figure 2.12 Ability to achieve the target set for trade promotion activities of traditional methods.13 Evaluation of Agritrade’s employees on whether to apply E- commerce in agricultural trade promotion.14 The E-commerce model to apply Page 69 Figure 2.15 The most important factor when apply E-commerce Page 69 Figure 2.16 Evaluation of Agritrade’s consumers on whether to apply E-commerce in agricultural trade promotion Page 71 Figure 2.17 Evaluation willing level of Agritrade’s consumers to participate in E-commerce website Page 73 ix INTRODUCTION 1.