VNU UNIVERSITY OF ECONOMICS AND BUSINESS FACULTY OF POLITICAL ECONOMY GRADUATION THESIS CURRENT SITUATION OF E-COMMERCE APPLICATIONS FOR SMALL AND MEDIUM-SIZED ENTERPRISES IN HANOI CITY STUDENT : Lưu Đức Mạnh STUDENT CODE : 20051099 CLASS : QH2020E KT CLC 1 Hanoi, October 2023 PREFACE Dear Review Board, Dear teachers ofthe Faculty of Political Economy, University of Economics and Business, VNU, My name is Luu Duc Manh. My final essay today marks the end of a long journey at the University of Economics and Business and is the product of months of effort, research and discovery. In this process, I have been guided and supported by many people, and I would like to take this opportunity to express my deep gratitude for the help. First of all, I would like to express my deep gratitude to the Board of Deans and teachers in the Department of Political Economy who have created conditions for me to have the opportunity to carry out the Early Graduation Thesis.
This credit to the teachers has opened up many opportunities for me to develop and improve myself more in the future. Secondly, I would like to express my deep gratitude to my instructor, Mr. Hoang Ngoc Quang, for his dedication and extensive knowledge, who took me through every step of the research and writing process. His support played an important role in the success of this essay.
I couldn’t finish it without his enthusiastic support. I would also like to express my gratitude to my family, friends and loved ones who have always supported and encouraged me during my essay. Their support has been a great motivation to help me overcome difficulties. Finally, I would like to express my gratitude to everyone who read this essay.
It is hoped that this essay will contribute a small part to my field of study and enrich my knowledge in this field. Many thanks, Luu Duc Manh TABLE OF CONTENTS LIST OF ACRONYMS LIST OF CHARTS INTRODUCTION 1. The urgency of the study ctw 2. The purpose of the study 3.
The object and scope of the study 10 4. Structure of the study 12 CHAPTER I: RESEARCH LITERATURE REVIEW & THEORETICAL BASIS 13 1. The E-commerce concept and fundamentals 16 3. E-commerce application activities in SMEs 24 3.
The Benefits of E-commerce to Small and Medium-sized Enterprises 30 CHAPTER II: THE CURRENT SITUATION AND POLICIES TO SUPPORT E-COMMERCE IN VIETNAM 31 1. Current situation of e-commerce applications in Vietnam 31 1. Infrastructure and Human Resource Current Situation 32 1. Online sales and marketing current situation 35 2.
Some policies to support e-commerce applications in Vietnam 40 3. Survey of e-commerce consumer community in SMEs 4l 4. The general economic situation of SMEs in Hanoi City 47 5. The contributions of E-commerce applications in SMEs in Hanoi City51 5.
The current situation of SMEs using websites and software in business in Hanoi 53 5. The current situation of Online Marketing applications of SMEs in Hanoi 56 6. Analyze opportunities and barriers to E-Commerce Applications in SMES based on research findings 58 6. Opportunities from e-commerce applications to SMEs in Hanoi 58 6.
Barriers to E-Commerce Applications in SMEs 59 CHAPTER III: RECOMMENDATIONS AND SOLUTIONS 63 1. The future e-commerce landscape 63 2. Solutions to enhance the application of e-commerce in SMEs 64 2. Training and developing digital skills 64 2.
Accelerate the development of SME support programs with Central assistance 65 2. Complete the legal framework for e-commerce development. Call for financial support through loans 66 2. Call for investment in infrastructure 66 2.
Encourage participation in e-commerce markets 67 2. Foster Cooperative Projects 67 2. Encourage secure online payment solutions 68 2. Enhance the quality of products and services 68 2.
Ensure data center system and information security: 69 2. Leverage market segmentation 69 CONCLUSION 71 REFERENCES 72 APPENDIX 86 LIST OF ACRONYMS No Acronyms Definition 01 WTO World Trade Organization 02 MSDP Mobile Subscriber Data Protection 03 Information and Communication ICT Technology 04 B2B Business-to-Business 05 B2C Business-to-Consumer 06 C2C Consumer-to-Consumer 07 C2B Consumer-to-Business 08 B2A Business-to-Administration 09 C2A Consumer-to-Administration 10 VND Vietnamese Dong 1I VECOM Vietnam E-commerce Association 12 SMBs Small and Medium-sized Businesses 13 GDP Gross Domestic Product 14 SEO Search Engine Optimization 15 loT Internet of Things 16 EBI E-Business Index 17 Vietnam Internet Network Information VNNIC Center 18 Vietnam Chamber of Commerce and VCCI Industry 19 CRM Customer Relationship Management 20 SCM Supply Chain Management 21 ERP Enterprise Resource Planning 2 AI Artificial Intelligence 23 HTTPS Hypertext Transfer Protocol Secure LIST OF CHARTS No Charts 61 |A chart of E-commerce definition including MSDP. 02 |Illustration of the Types of E-commerce based on their characteristics. 03 |Chart of classification criteria for small and medium-sized enterprises based on Decree No.
80/2021/ND-CP of the Government. 04 |The chart of the percentage of using Work-supporting tools over the years. 05 |The chart of priority towards recruiting IT & e-commerce skilled/trained staff by business sector. 06 [The chart of assessment about the importance of investment in IT & e-commerce infrastructure.
07 |The chart of the percentage of enterprises having websites over the years. 08 |The chart of the percentage of doing business by enterprises on social networks over the years. 09 The chart of the percentage of enterprises participating in e-commerce floors over the years. 10 [The chart of the percentage of websites with mobile version over the years.
1 The chart of the percentage of businesses owning sales websites according to the survey. 12 [The chart of the percentage of businesses building sales websites according to the survey. |The chart of the proportion of enterprises participating in the business on e-commerce trading floors. 14 |Output of descriptive statistics after processing data from the survey by SPSS.
15 |A comparison chart of the number of new businesses operating in Hanoi in the period of 2020 - 2023. 16 |A comparison chart of newly registered capital of enterprises in Hanoi in the period of 2020 - 2023. 17 |A chart of the proportion of industry structure of Small and Medium-sized Enterprises in Hanoi nowadays 18 A chart of the proportion of usage of management software of SMEs in Hanoi 2022. 19 |The chart of the percentage of SMEs in Hanoi using e-commerce Iwebsites/applications for export and import activities in 2022.
20 [The chart of assessment about the efficiency of investment in IT and E-commerce infrastructure to the business performance of Hanoi’s SMEs in 2022. 21 [The chart of the percentage of online marketing tools used by SMEs| lin Hanoi by 2023. The urgency of the study Nowadays, it can be said that entrepreneurial activity amongst Small and Medium-sized Enterprises (SMEs) is a key engine for the economic development of nations (The Organization for Economic Co-operation and Development, 2017). Recent investigations within the realm of international entrepreneurship also focus on the notion that applications of e-commerce hold promise for fostering the growth of small and medium-sized enterprises (SMEs) (Arto Ojala et al.
The exponential pace of digital transformation to the point where modern e-commerce today is creating significant changes in the economic environment, impacting all sectors of the industry (Nguyen Hoang Tien, 2022). E-commerce has become an indispensable part of global retail (Koen van Gelder, 2023). The development of e-commerce not only helps business activities smoothly but also provides many new values and meets new needs of businesses and consumers. Therefore, every country in the world is interested in developing e-commerce.
Some of the roles of e-commerce include: changing the nature of each country's economy and the global economy, increasing knowledge in the economy, and opening up opportunities to promote the advantages of the following developed countries so that they can catch up, even surpass previous countries, shorten the gap in knowledge levels between developed countries and developing countries. The integration of e-commerce platforms by businesses in Hanoi has been aligned with the prevailing trend. This has allowed them to access both domestic and international customer bases, leading to an expansionof their export markets. Ta Dung Tri, Deputy Head of the Trade Management Office 10 under the Hanoi Department of Industry and Trade, emphasized that this adoption of e-commerce has played a pivotal role in driving economic growth and fostering local development (Ngoc Mai, 2023).
There is no doubt that Hanoi city is transforming at an incredible speed, taking into account the numerous research statistics coming from different times. Over the past several years there has been massive progress concerning the E-commerce industry such as increased market and changing customer trends. This is the opportunity that companies should take advantage of so that they can market their products through this channel while keeping production or operational expenses down as compared to their peers. Though doing so in the context ofour current digital environment involves doubts and difficulties, it is still necessary.
Therefore, the status of e-commerce facilities for small businesses in Hanoi city needs to be examined to establish the issues and prospects of these small businesses. This research tries to establish the relationship between e-commerce and small and medium-sized enterprises in Hanoi City and offer feasible guidelines for businessmen, the government, and other stakeholders. Such enterprises will then receive the data necessary for strengthening the economy and long-term life of the city. The purpose of the study This research aims to provide a detailed and thorough evaluation of the E-commerce applications of SMEs in Hanoi city.
On that basis, propose some perfect solutions to promote E-commerce applications at these businesses. The object and scope of the study Object: E-commerce applications Scope: Small and Medium-sized enterprises. Time: from 2020 to 2023. Location: Hanoi city.
Methodology This study will be conducted primarily through the study of available literature and references to gather information from reliable sources, including previous studies, market reports, and documents related to e-commerce in the SME sector in Vietnam and especially in Hanoi. This is an inevitable method and has appeared in all research papers so far. By understanding the information, data and research methods of these references, we can bring out the research gap that this topic can explore further, and then, we will better understand the current situation, trends and challenges that SMEs in Hanoi are facing. In addition, the paper will also use descriptive statistical methods to summarize and present data collected from conducted surveys.
The study will use measures such as average, variance, and frequency to describe the data and give an overview of the e-commerce situation for small and medium-sized enterprises in Hanoi. The data for this research was collected from Small and Medium-sized Enterprises in the province of Hanoi City, operating in the retail sector in different sectors: e@ Wholesale and retail; e Processing and manufacturing industries; e Information and communication technology; e Construction; e Transportation, warehousing; e Agriculture, forestry and fisheries; e Education and training; e Accommodation and food services; e Financial, banking and insurance activities; 12 e Real estate business; e Administrative activities and support services Business representatives responding to the survey are leaders and managers of the enterprise (from the level of Deputy Head of department and equivalent or higher). After the trial interviews, the questionnaire information was revised to ensure that people could read and understand the questionnaire and answer the information correctly. The data collection process is conducted online through direct phone calling and through online Google Forms.
Data was cleaned and digitized in Excel before processing with SPSS. The questionnaire is self-constructed and includes: ® Quantity: 18 questions. ® The questions focused on SMEs's own views on the status of e-commerce adoption for SMEs in Hanoi, by assessing the agreement of the surveyed businesses about the opportunities and challenges for this group of businesses. e Scale: The research paper uses a 5-level Likert scale, where Level 1 is Very Dissatisfied, Level 2 is Dissatisfied, Level 3 is Normal, Level 4 is Satisfied and Level 5 is Very Satisfied.
Structure of the study CHAPTER I: RESEARCH LITERATURE REVIEW & THEORETICAL BASIS.