Not many companies in Vietnam conduct transactions via electronic means, while those engaging in e- commerce have yet to pay due attention to it, shows a latest survey by a local trade agency.

Only 46.2 percent of 504 enterprises surveyed by the E-Commerce Department under the Trade Ministry in 2005, own websites, of which 32.8 percent have some e-commerce functions, the department said Wednesday, noting that few websites allow online shopping.

Investment for e-commerce application, including expenses for software, website maintenance and manpower, accounts for some 5 percent of total annual expenditure of the enterprises.

The survey also shows that over half of companies having websites update them only once a month, and less than 30 percent of the firms do that daily. Many enterprises regard other firms as main customers when developing websites, which means that business- to-business (B2B) transaction is more favored than business-to- customer (B2C) one.

E-commerce in Vietnam involve in such goods as computers, mobile phones, cameras, electronic home appliances, software, publications, flowers, gifts and handicrafts, and some services, including information and communication technology, tourism, information provision, consultation, and online education and training.

Of the surveyed website owners, 31.3 percent are production enterprises, and the rest trading companies and service providers.

Local industry experts said e-commerce will develop strongly after the Law on Electronic Transactions takes effect in March, and all other related legal documents are issued by the end of 2006.

Under Vietnam's Overall Plan on Developing E-commerce in the 2006-2010 approved by the government last year, by 2010, some 60 percent of large enterprises will conduct B2B e-commerce, 80 percent of small and medium firms B2C or B2B, and about 10 percent of households B2C or C2C (consumer-to-consumer). By the year, tenders of the government and its purchases will be conducted via electronic means.

Under Vietnam's strategy on developing information technology and telecommunications, every 100 residents will have 32-42 phones, over 10 personal computers, and 8-12 Internet subscribers by 2010.

The country, with current population of over 83 million, had nearly 10.7 million Internet users and 16 million phone subscribers by the end of 2005, according to the Vietnam Internet Network Information Center.

Source: Xinhua