ASEAN's E-Commerce During the COVID-19 Pandemic and Beyond: Perspectives and Lessons from Enterprises

15/12/2021 11:35

E-commerce activities have penetrated almost every sector of production and commerce, thereby promoting global economic development. E-commerce is also a modern channel for goods consumption, effectively serving the needs of consumers. Vietnam is a potential market for e-commerce development due to its growing economy and population of nearly 100 million people.

E-commerce is rapidly growing in popularity andquickly becoming a widely used trading method. The challenges posed to traditional buying and selling activities, particularly in the context of the COVID-19 pandemic, further emphasize the importance of e-commerce. With that in mind, the International Webinar "ASEAN's E-Commerce During the COVID-19 Pandemic and Beyond: Perspectives and Lessons from Enterprises" organized by the Faculty of International Business and Economics, VNU University of Economics and Business on September 22, 2021 provided opportunities for economic researchers, managers, and policymakers. Business executives, lecturers, experts, and students share their perspectives and experiences on overcoming obstacles to ASEAN's international trade activities during the COVID-19 pandemic, and offer practical solutions to assist e-commerce businesses and ASEAN countries in capitalizing on post-COVID-19 opportunities.

Dr. Vu Thanh Huong began the Webinar by emphasizing how the COVID-19 pandemic has altered consumer behavior significantly. Due to social distancing measures, purchasing in person at shopping malls, supermarkets, and stores is difficult. As a result, consumers are increasingly gravitating toward online shopping, causing the share of e-commerce in global retail to increase from 14% in 2019 to around 17% in 2020, and this trend will likely continue in the near future. This context increases the pressure on ASEAN businesses and countries to promote the application of digital technology, to digitize the economy, and to develop e-commerce.

Dr. Vu Thanh Huong

Taking a business-oriented approach, speakers - Dr. Atty Rami Amer Hourani, a supply chain expert in the Philippines and President of the PhilExport Union - Cebu, examined the topic "Retail industry during the COVID-19 pandemic" using two large-scale retail businesses as case studies. Numerous e-commerce applications are being developed to combat the COVID-19 pandemic. He highlighted the challenges that micro, small, and medium-sized enterprises (MSMEs) in the retail industry face, including the following: Business regulations change frequently, and the social environment is fraught with inconsistencies. Consensus on how to respond to the pandemic, challenging business environment due to diminished purchasing power, disruption of global supply chains... In that context, the use of e-commerce to overcome obstacles The challenges posed by the COVID-19 pandemic have grown even more significant for retailers of all sizes. The first example is Art N' Nature Manufacturing, a company with over 40 years of experience exporting handicrafts to Europe and the United States. In response to the social distancing situation, the company actively negotiated with the Philippine government, learned about the government's support programs, and used an e-commerce business model to assist in reducing social distancing. Reduce operating costs through the use of online sales systems and accounting software such as QuickBooks. This results in cost savings in human resource management and a more effective exchange of information between employees in different departments. in the business. For small businesses with limited staff and technology, such as the Balik startup, the company has used social media platforms such as Twitter, Instagram, and Facebook to distribute products, as well as developing a customer evaluation and feedback system in potential areas, managing an order system via an online document application, and so on. These are considered viable options for small businesses to continue operations, production, and market access during the COVID-19 pandemic.

With the COVID-19 pandemic still a serious threat to the Philippines in particular and ASEAN countries in general, the fact that businesses have adopted various e-commerce models will aid in expediting the economic recovery following the pandemic. The establishment of such a cross-border supply chain will also contribute to the promotion of the ASEAN Agreement on e-commerce, thereby promoting the ASEAN economies' digitization. Additionally, it should be noted that many ASEAN e-commerce companies, such as Shopee, Lazada, and others, have parent companies in China. Numerous Chinese companies, on the other hand, are currently experiencing a variety of crises and financial difficulties. This issue directly affects the Chinese e-commerce market, but it also presents an opportunity for ASEAN e-commerce businesses as orders gradually migrate out of China. ASEAN, and particularly Vietnamese businesses, must be well prepared to capitalize on this opportunity.

Mr. Piotr Harasimowicz, Chief Representative of the Foreign Trade Office, Trade and Investment Agency of Vietnam Lan in Vietnam, presented a comprehensive and in-depth look at e-commerce activities under the theme "Perspectives on the context of e-commerce in Vietnam and Polish e-commerce enterprises in Vietnam." He provided an overview of the ASEAN and Vietnamese e-commerce markets. Shopee, Lazada, Tokopedia, and Tiki are among the most active and interested businesses in the field of e-commerce in ASEAN and Vietnam. Through an analysis of the highlights of e-commerce activities in Vietnam, as well as the conditions and influence of foreign investors, the potentials and opportunities for European enterprises, particularly Polish enterprises, to invest in the field of e-commerce in Vietnam have been identified. https://polishfood.hk/ - an e-commerce site specializing in selling high-quality food products from Poland in Hong Kong and ASEAN - is one of the prominent Polish business projects in the field of e-commerce that has been implemented in ASEAN. Additionally, the Polish Ministry of Economic Development, Labor, and Technology, in collaboration with the Polish Trade and Investment Authority, is in discussions with Lazada to establish a Polish Pavilion on Lazada Vietnam, Tiki.vn, and Sendo, and offers a seller exchange program on the Polish portal Allegro.pl for Vietnamese sellers. Buy2Sell Vietnam has made numerous offers of collaboration to cosmetic companies in Poland interested in entering the Vietnamese market. Vietnamese businesses must take advantage of their ability to connect and collaborate with Polish businesses in the field of e-commerce. Poland is currently the 9th largest export market for Vietnamese goods in the EU, owing to the foundation of a strong trade relationship between Vietnam and Poland. The Vietnamese community in Poland is particularly large, and Vietnamese cuisine is gaining popularity in Poland and throughout the EU. This is an excellent opportunity for Vietnamese businesses, particularly those in the food sector, to promote their products and services in the Polish market via e-commerce.

Vietnam has become one of the fastest growing Internet economies in the region. The e-commerce market is rapidly growing in popularity as a business model for enterprises and has a sizable presence in the community. Prior to the COVID-19 pandemic's impact, many businesses faced difficulties conducting business; as a result, the e-commerce market has developed into an effective business channel for businesses to both transact with customers and provide business services. specifications for epidemic prevention. Vietnam's e-commerce sector grew strongly in 2020 and the first eight months of 2021, achieving some outstanding results in a variety of areas such as online retail, car booking, food delivery, online entertainment, online marketing, online payment, and online training... However, Vietnam still has a long way to go in terms of promoting e-commerce development and contributing to the economic recovery following the epidemic. Within the Webinar's framework, a number of recommendations were made to assist the state and businesses in general, and Vietnam in particular, in overcoming the COVID-19 pandemic crisis and capitalizing on development opportunities.

For ASEAN countries, with a particular emphasis on Vietnam, the Vietnamese government must work to improve the legal framework and effectively implement e-commerce tax policies. Additionally, digitizing tax collection is a critical solution that must be implemented rapidly and effectively. E-commerce is a highly specialized field that combines technology and market forces, physical and virtual elements, and established entities with entities in the digital space. As a result, the Vietnamese government must perfect the legal framework that underpins practice, and it is necessary to amend and improve the laws governing e-commerce, particularly in the area of payment technology application (Fintech). Additionally, the Government of Vietnam should develop programs, policies, and solutions aimed at perfecting the credit rating platform for e-commerce websites; this is necessary in order to increase customers' trust in purchasing and payment activities conducted in an e-commerce environment, thereby promoting the growth of e-commerce. Additionally, in light of the current COVID-19 pandemic, Vietnam requires appropriate incentives to attract FDI into e-commerce and related industries. It is critical to promote the dissemination of information to foreign investors about Vietnamese laws and regulations, the business environment, and culture. Vietnam must also take advantage of new generation free trade agreements, such as the EU-Vietnam FTA, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Vietnam Free Trade Agreement, and the EU-EU FTA. South - United Kingdom Free Trade Agreement (UKVFTA)... to facilitate cross-border e-commerce and investment.

Businesses must act quickly when implementing digital technology and always have a backup plan in place to maintain production and ensure the supply chain is proactive in all situations. To navigate through challenges and seize opportunities in a volatile environment, e-commerce businesses must be adaptable and proactive in their business strategies and operational tactics. The application of technology to customer data management is critical for improving and more effectively connecting with customers, retaining existing customers, and easily reaching new customers. The application of e-commerce must be reasonable in order to assist in cost reduction in the face of a dramatic increase in logistics costs. Additionally, the use of e-commerce in business is a viable solution for a number of businesses during this difficult epidemic period. However, businesses must evaluate the suitability of e-commerce platforms such as Amazon, Shopee, and Lazada... as well as social media platforms such as Facebook, Twitter, and Instagram... in order to select the most appropriate e-commerce platform for their business, taking into account factors such as costs and benefits, security, and privacy. Finally, businesses considering e-commerce should develop an international strategy and adopt a global mindset in order to gain access to a larger market.

Every situation, even the direst, contains an opportunity. The "bad situation" is that the COVID-19 pandemic may persist for an extended period of time, but businesses can fully capitalize on good opportunities to expand production and export by utilizing an e-commerce platform in their business activities. Countries will also be more active and dynamic in their efforts to renew their economies as a result of the pressures of accelerating digitization. A time of crisis provides an opportunity for businesses and the entire country to recognize and abandon outdated concepts that are no longer necessary for society's development. E-commerce is critical for Vietnam and businesses to improve their operational efficiency, promote future growth, and accelerate the country's transition to a high-middle-income status by 2030, as Vietnam has stated in its Socio-Economic Development Strategy for the period 2021-2030.

Dr. Atty. Rami Amer G. Hourani is the Founder of Hourani Law Firm, Vice President of Art N 'Nature Mfg, President of PhilExport Cebu Union and Professor at College of Law - University of Cebu. In addition, he serves as Vice Chairman of the Philippine Export Development Council's Legislative Advocacy and Monitoring Network Committee, and is a consultant to the Federation of Employers of the Philippines, the Philippine and Chinese Chambers of Commerce and Training Center of the International Labor Organization. He graduated with a Doctor of Laws from Ateneo de Manila University of Law in 2017. In addition, he holds a Bachelor of Science degree in Business Management with a minor in English Literature and Business Development in 2013.

Mr. Piotr (Peter) Harasimowicz is Chief Representative of Foreign Trade Office, Polish Chamber of Commerce and Investment in Vietnam. He is a manager with more than 20 years of professional experience in the chemical, pharmaceutical and food industries in Southeast Asia. During his professional activities, he held positions of many domestic and foreign enterprises such as CEO at Minh Son Health Co., Ltd., Director of sales and business development at IMS Health. . He was also in charge of the business analysis department at Asia-Pacific and won the Outstanding Sales Director award at Abbott Laboratories. In addition, he conducts a number of independent investment and consulting activities, is a member of the supervisory board of organizations such as the European Chamber of Commerce and a member of the Executive Committee of the Central and Eastern European Chambers of Commerce in Vietnam. He graduated with a Master's degree and studied engineering at Gdynia Maritime University.

Le Minh Tuan (Tran.)