E-commerce History, development, advantages and disadvantages (Bài làm đạt điểm 9.5, ngữ pháp được sửa bởi người bản xứ, thông tin không trùng với bất kì văn bản nào)

E-commerce: History, development, advantages and disadvantages Table of contents Foreword 05 I Overview of e-commerce 05 1.1 Definition of e-commerce 05 1.2 Features and types of E-commerce 05 1.2.1 Features of E-commerce 05 1.2.2 Types of E-commerce 07 II Situation of e-commerce in Vietnam 08 2.1 History and development of e-commerce in Vietnam 09 2.2 Current status of e-commerce in Vietnam 09 2.2.1 Infrastructure for e-commerce development in Vietnam 09 2.2.2 The development of E-commerce in Vietnam in recent years 14 2.3 Opportunities and challenges of e-commerce in Vietnam 16 2.3.1 E-commerce opportunities in Vietnam 16 2.3.2 Challenges of e-commerce in Vietnam 20 2.4 Some solutions to promote e-commerce development in Vietnam 22 III Conclude 24 Today, along with the strong development of science and technology and especially the development of information technology, e-commerce was born and developed rapidly all over the world E-commerce covers a wide range of socio-economic activities, bringing many benefits and at the same time bringing many challenges for users E-commerce develops rapidly globally, especially in industrialized countries, countries with developed economies have also been participating in the development of e-commerce E-commerce offers potential benefits that help participants gain rich information about markets and partners, reduce costs, expand business scale, shorten business cycles Recognizing the role and utility of e-commerce with the development of the country in the actual conditions of Vietnam That's why we would like to study the topic EEcommerce: History, development, advantages, and disadvantages I Overview of e-commerce 1.1 Definition of e-commerce Electronic commerce or e-commerce (sometimes written as eCommerce) is a business model that lets firms and individuals buy and sell things over the internet E-commerce, which can be conducted over computers, tablets, or smartphones may be thought of like a digital version of mail-order catalog shopping Nearly every imaginable product and service is available through e-commerce transactions, including books, music, plane tickets, and financial services such as stock investing and online banking As such, it is considered a very disruptive technology 1.2 Features and types of E-commerce 1.2.1 Features of E-commerce ICT: The development of E-commerce has a close interrelationship with the progress of ICT E-commerce is the application of IT into all kinds of commercial activities Therefore the advances of information technology boost the rapid growth of Ecommerce, and vice versa, the flourishing of E-commerce also promotes and gives rise to several branches of ICT, such as hardware and software for E-commerce apps and Payment services Platforms: E-commerce transactions are performed completely online In traditional commercial activities, parties have to meet in person for negotiation and transactions to sign the contract As for E-commerce, thanks to the use of electronic means with connection to global networks, mostly the Internet, parties can now negotiate their contract without having to meet directly Range of Operation: Globally; in other words, E-commerce operates in a borderless market This is demonstrated by the fact that people from any nation in the world not have to commute to any locations to make a transaction, instead of doing so through Ecommerce websites or social networking sites Participants: in e-commerce activity, there must be at least parties involved This includes the participation of the third party who creates an environment for digital transactions They are Internet service providers and Certificate authorities, responsible for sending and storing information of the parties involved in the transaction, as well as verifying its credibility Time: Parties involved in E-commerce can transact 24/7 wherever there is a telecommunications network and electronic means of connection to this network, which are highly automated vehicles that help speed up the transaction process The information system: The information system is the market In E-commerce, parties don’t have to meet each other face to face, but they can still proceed with negotiating and signing contracts To this the parties must access each other’s information system or the information of search solutions through the internet, extranet, etc to learn about each other to negotiate and sign contracts Because of the aforementioned features, we can define the main advantage of Ecommerce as a convenience In other words, E-commerce is not limited by geographical space, which means that it is available anywhere and at any time Transactions can be carried out at a distance, between city and countryside, from one country to another This allows businesses to lower costs For consumers, they can sit at home to order, shop for a variety of goods and services quickly 1.2.2 Types of E-commerce Based on the type of relationship between different sides of commerce, we can divide E-commerce into major types Government Government G2G Business B2G Customer Business G2B B2B C2B Customer Employee B2C C2C B2E Citizen G2C Business to Business (B2B) Business-to-business (B2B) describes commerce transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer The volume of B2B transactions is much higher than the volume of B2C transactions The primary reason for this is that in a typical supply chain there will be many B2B transactions involving sub-components or raw materials, and only one B2C transaction, specifically the sale of the finished product to the end customer B2B is also used in the context of communication and collaboration Business to Consumer (B2C) Business-to-consumer (B2C, sometimes also called Business-to-Customer) describes activities of businesses serving end consumers with products and/or services It corresponds to the retail section of e-commerce, where traditional retail trade normally operates The decision-making process for a B2C purchase is much shorter than a business-to-business (B2B) purchase, especially for items that have a lower value Consumer to Consumer (C2C) Consumer-to-consumer (C2C) (or citizen-to-citizen) electronic commerce involves electronically facilitated transactions between consumers through some third party A common example is Shopee, in which a consumer posts an item for sale and other consumers bid to purchase it; the third party generally charges a flat fee or commission The sites are only intermediaries, just there to match consumers They not have to check the quality of the products being offered This type of e-commerce is expected to increase in the future because it cuts out the costs of using another company Consumer to Business (C2B) Consumer-to-business is an electronic commerce business model in which consumers (individuals) offer products and services to companies and the companies pay them This business model is a complete reversal of the traditional business model where companies offer goods and services to consumers (B2C) We can see this example in blogs or internet forums where the author offers a link back to an online business facilitating the purchase of some product, and the author might receive affiliate revenue from a successful sale Government to Business (G2B) Government-to-Business is the online non-commercial interaction between the local and central government and the commercial business sector, rather than private individuals (G2C) Government to Citizen (G2C) Government-to-Citizen is the communication link between a government and private individuals or residents Such G2C communication most often refers to that which takes place through Information and Communication Technologies (ICTs) II Situation of e-commerce in Vietnam 2.1 History and development of e-commerce in Vietnam In 1994: the internet was widely used, businesses began to use the internet for commercial purposes Since 2000, the internet has been constantly developing and being exploited in business, creating new opportunities and new challenges for traditional businesses and leading to the rapid development of e-commerce In Vietnam, the internet officially appeared in 1997 In 2003, e-commerce was taught at universities With the development of the Internet, 3G, and mobile devices, especially smartphones and thousands of bank cards issued every day, Vietnam's e-commerce is growing strongly and booming in the coming years, according to a survey of the Ministry of Finance Industry and Trade show that more than 70% of consumers prefer to shop online Since the e-commerce model has helped businesses and customers more convenient in the buying and selling process In the early days, when customers were still unfamiliar with online purchases, it was difficult for businesses to brand and build trust with online customers Until now, online shopping has become a habit of many gods because of the convenience it brings In 2017, Vietnam e-commerce marked a boom in cross-border e-commerce The growth rate of the e-commerce market in 2017 and 2018 is estimated at over 25% Particularly in the field of online retail, information from thousands of e-commerce websites shows that the revenue growth rate in 2017 increased by 35% In the field of payment, in 2017, the growth in the number of online transactions of domestic cards increased by about 50% compared to 2016 while the transaction value increased by 75% According to Euromonitor data, with an average growth rate of about 33% per year, it is expected that Vietnam's e-commerce value will reach 106 trillion VND in 2022, equivalent to about 4.6 billion USD US dollars 2.2 Current status of e-commerce in Vietnam 2.2.1 Infrastructure for e-commerce development in Vietnam  Legal infrastructure To take advantage of the great opportunities that information technology brings, many countries in the world as well as Vietnam have the policy of developing e-commerce activities; has built a complete and transparent legal system to regulate relationships arising from e-transactions, and protect the legitimate rights and interests of organizations and individuals participating in this relationship Law on Electronic Transactions: has a fairly wide scope of regulation: Electronic transactions in activities of state agencies and electronic transactions in civil, business, and commercial fields This Law includes many provisions on Data messages, electronic signatures, and authentication of electronic signatures; concluding and performing electronic contracts; Security, safety, protection, and confidentiality in electronic transactions; Resolve disputes and handle violations in electronic transactions;… Commercial Law: is an important basis for commercial activities, including ecommerce This Law stipulates: In commercial activities, data messages that meet the conditions and technical standards as prescribed by law are recognized as having the same legal value as documents In addition, the display and introduction of goods and services on the Internet is also considered a form of display and introduction of goods and services Intellectual Property Law: In this law, there are some provisions related to ecommerce, such as regulations on; Acts of copyright infringement, related rights infringement in the electronic environment Although there are no specific regulations related to the field of e-commerce, the principles in the Intellectual Property Law can still be applied to the field of e-commerce In addition, some other legal documents also have provisions governing e-commerce activities such as the Law on Information Technology, the Law on Customs, the Civil Code, etc  Technology infrastructure About Internet - Telecommunications infrastructure Over the past 20 years, from nothing, Vietnam has built a modern infrastructure on par with many countries in the world Vietnam has connected with many international undersea fiber-optic cable routes: AAG, SMW3, IA, APG, and AAE-1; Millions of kilometers of fiber optic cable and ADSL connect to 100% of communes and wards nationwide with an average Internet connection speed of 9.5 Mbps, ranking 58 in the world; Vietnam currently has more than 400,000 domain names ".vn", confirming the strong development achievements of the Internet By the end of January 2020, Vietnam had 68.17 million Internet users, equivalent to 67% of the country's population With this number, Vietnam is the country with the 12th highest number of Internet users in the world and 6th out of 35 countries/regions in Asia (according to Internetworldstats) After 20 years, Vietnam is a country with 2G, 3G, and 4G telecommunications infrastructure covering the whole country with a system of more than 150,000 BTS stations The percentage of mobile users reached more than 128 million subscribers, including more than 36.2 million mobile broadband subscribers and nearly 11 million Internet subscribers These figures show that the telecommunications - Internet infrastructure is a launching pad for Vietnam's economic development and international integration Payment infrastructure - electronic payment In recent years, the infrastructure and technology for non-cash payment, especially electronic payment, has been continuously focused on investment, improving quality, and promoting efficiency Advanced and modern payment technology, serving well for the provision of new non-cash payment services and means The technical infrastructure for card payment has been improved in quality, focusing on development investment; POS has now been installed in most establishments, distribution chains, retailers, large hotels, and is gradually expanding to medical facilities, hospitals, schools By May 2020, the whole country had about 19.2 thousand ATMs, more than 277 thousand POS, about 78 commercial banks deploying payment services via the Internet (Internet banking), 49 commercial banks providing payment services via the Internet payment via mobile phone (Mobile Banking), 30 commercial banks and payment intermediary service providers coordinated to deploy payment with about 80,000 QR Code points; The State Bank has licensed 34 payment intermediary service providers, in which e-wallet services; electronic payment gateway services, support collection, and payment; electronic money transfer service Bank cards continued to grow, by the end of March 2020, the number of cards in circulation reached 103.1 million (up 22.4% compared to the end of 2017) New and modern technologies in payment such as the application of fingerprint authentication, face recognition, use of quick response codes (QR Codes), encryption of card information, contactless payment, mPOS technology is researched, cooperated, and applied by banks, especially the payment by QR Code associated with promoting payment via mobile phone in line with the development trend in the world and consumer behavior Safety and security in e-commerce 10 In addition to the potential for development, there are still challenges and risks that hold back the breakthrough of e-commerce such as security issues for information technology systems, difficulties in protecting customer data against risks hacked and stolen The security challenges that E-commerce companies in Vietnam are facing are payment fraud, Spam, Phishing, Bots, DDoS, Brute-force attacks, SQL injections, etc To solve these security problems, Vietnamese e-commerce companies also offer many solutions First, use HTTPS HTTPS is a mandatory standard for all websites, especially e-commerce HTTPS protocol helps secure messages transmitted between the server and the client This not only helps secure the user's account but also helps the e-commerce website to avoid many risks of being hacked Regarding payment gateway security, payment security systems of enterprises need to comply with minimum standards such as Integrated SSL certificate to encrypt transmission information, PCI DSS security standard, OTP password, 128-bit MD5 encryption, user token storage mechanism, does not store user card information Security solutions for e-commerce businesses such as: using anti-virus and antimalware software, using Web Application Firewall, using advanced SSL certificates, multi-layer security, data backup, Use security plugins for your website,…  Human resource infrastructure The potential for development in the field of e-commerce in Vietnam is great, but currently, human resources in the field of e-commerce in Vietnam are both short in quantity and weak in quality meet current and future development needs The industrial revolution 4.0 and e-commerce require workers to have high qualifications, meanwhile, the quality of human resources in our country is still low, the labor structure is unreasonable, This leads to the fact that Vietnam is gradually losing its competitiveness in the international labor market and requires early solutions 11 In the field of e-commerce, we are very short of a qualified labor force in information technology and e-commerce Currently, many businesses are lacking skilled workers in ecommerce According to the Department of E-commerce and Information Technology (Ministry of Industry and Trade), based on the annual survey results for a part of regular e-commerce application, more than 80% of enterprises participated in the survey (equivalent to more than 1,000 enterprises) shows that the demand for trained ecommerce human resources is very necessary for businesses This demand will continue to be much greater when in the coming time, Vietnam becomes a country with a large application of information technology in management, production, and business activities, so the exchange Online commerce will become more and more popular To solve the problem of human resource shortage in the e-commerce industry, some universities in Vietnam are currently training bachelors in e-commerce However, compared with the growth rate and actual demand for human resources for this industry, the current supply has not met the demand Because according to a report of the Vietnam E-commerce Association - VECOM, in 2017 up to 31% of enterprises had difficulties in recruiting workers related to information technology and e-commerce 2.2.2 The development of E-commerce in Vietnam in recent years As of January 2018, Vietnam had 64.05 million internet users, accounting for 67% of the population, an increase of 6% compared to 2016 The number of Internet users is considered to be at a high level in the world, but the percentage of people using the Internet is still average Vietnam has 55 million social network users, accounting for 57% of the population Information updates continue to be the most common daily internet use goal, up from 87% in 2015 and to 93.5% in 2016 The majority of respondents use the internet daily to participate in online forums, social networks (81.2%), e-mail access (73.8%), watching movies, listening to music (64.8%), and academic research (63.9%) For activities such as personal purchases, the majority of respondents have a monthly activity frequency (36.2%) The latest report of 12 eMarketer, a research firm from the US, also showed that Vietnam is a booming market of smartphones with 30% of the population of users Online time on mobile devices also accounts for 1/3 of a day of Vietnamese consumers Fierce competition in the field of e-commerce is due to the emergence of large corporations around the globe that force e-commerce enterprises to continue to enhance communication and marketing activities, thereby increasing operating costs Therefore, these enterprises suffer from prolonged losses in e-markets Vietnam's e-commerce market is very potential with a growth rate and increasing size Research and consultancy firm Frost and Sullivan also forecast that the size of the Vietnamese market will increase from USD 1.7 billion in 2016 to USD 3.7 billion in 2020, equivalent to a growth rate of 45% per year Despite such a potential market, the loss of the above enterprises shows that ecommerce enterprises are operating almost without profit Therefore, to maintain and strongly develop operations for e-commerce sites, domestic e-commerce businesses need to evaluate their competitiveness indexes periodically to take advantage of cooperation or merger and acquisition (M&A) with foreign businesses to improve competitiveness According to iPrice's statistics, by the end of the fourth quarter of 2017, the top ecommerce market in Vietnam was Shopee (ranked first), Tiki (ranked fourth), and Sen Do (ranked fifth) In 2018, there were 21 investments in the e-commerce field with a total value of 83 million USD In particular, Tiki received investments of up to USD 54 million from JD.com and STC Investment The list of countries with a lot of Vietnamese e-commerce investment projects includes Japan, Germany, the US, South Korea, China, and Singapore This shows that Vietnam's e-commerce market is a potential land for investors from the region and the world, with principal investors pouring capital into various ecommerce companies in Vietnam in which Japan becoming the largest 13 Vietnam’s e-commerce revenue reached $11.8 billion in 2020, up 18 percent against last year and accounting for 5.5 percent of total retail sales According to a report by the Ministry of Industry and Trade's Department of E-commerce and Digital Economy, 53 percent of the population has joined the online retail market, boosting the growth of Vietnam’s e-commerce sector by 18 percent to $11.8 billion, accounting for 5.5 per cent of the total retail sales Vietnam is the only country in Southeast Asia to achieve a double-digit growth rate in e-commerce COVID-19 pandemic is a major boost to e-commerce, prompting many companies to businesses online, as well as attracting first-time online shoppers However, the purchasing power is still affected by the pandemic The number of transactions has increased drastically compared to last year’s period Nevertheless, revenue growth is on a downward trend as consumers buy items with a lower value The pandemic also resulted in a massive drop in online flight and hotel bookings Online shopping traffic in Vietnam so far this year skyrocketed by 150 percent against the year prior, with daily visits to e-commerce sites growing to 3.5 million, according to the Vietnam e-Commerce Association (VECOM) The e-Conomy SEA 2020 report from Google, Temasek, and Bain & Company pointed out that e-commerce has driven significant growth in Vietnam at 46 percent, alongside strong growth across most sectors except for travel Looking at 2025, the overall e-Conomy will likely reach $52 billion in value, re-accelerating to around 29 percent compound annual growth rate According to the Department of E-commerce and Digital Economy, the management unit is urgently completing policies and legal documents to create a healthy environment to support the development of e-commerce platforms 2.3 Opportunities and challenges of e-commerce in Vietnam 2.3.1 E-commerce opportunities in Vietnam 14 E-commerce on an upward trajectory Vietnam’s flourishing digital economy and its vibrant e-commerce space make it a conducive place to tap into new business opportunities Recently, it has been receiving considerable attention from both domestic and foreign investors Untapped potential E-commerce has been on the rise in Vietnam, increasing from about 28 percent in 2017 to nearly half of the population in 2020 By 2025, over 70 percent of Vietnam’s 100 million population is expected to be using e-commerce transactions As per Statista, the country’s e-commerce revenue will cross US$6 billion by the end of 2020, with projections closing in near US$9 billion by 2025 Vietnam’s place within ASEAN e-commerce Vietnam’s e-commerce is quickly catching up with its ASEAN peers, ranking 86 in the 2020 United Nations E-Government Survey The country moved up two places among 193 nations, and it is aggressively improving its e-governance, aiming to be among the top four Southeast Asian nations by 2025 Its 40 million online shoppers annually spend US$210 on an average to make it the region’s second-largest e-commerce market With rising internet access, wider adoption of smartphones, and increasing confidence in online shopping, Vietnam’s e-commerce market is expected to continue to grow in the near term Foreign investments The success of several Vietnamese-origin e-commerce platforms, such as Tiki, Sendo, and Thegioididong proves Vietnam’s ability to foster e-commerce Investments from Japan, Germany, the US, South Korea, China, and Singapore have empowered these platforms’ evolution into large e-commerce powerhouses Recently, Tiki raised US$130 million from NorthStar Group, in addition to a majority stake investment from China’s JD.com Another example of these investments is the US$51 million deal of Sendo 15 from Japan’s SBI Holdings Grab and Gojek, the region’s two most valuable startups, are evaluating the terms of a potential merger This merger has the power to shift market dynamics across Southeast Asia’s e-commerce sector Favorable regulatory environment For establishing e-commerce, Vietnam offers one of the most favorable legal environments in the ASEAN region The country has enacted five of its six laws meant for the regulation of e-commerce activities The recent development of the country’s ecosystem of transportation, delivery, and fulfillment services is centered predominantly around the e-commerce sector As of 2020, Vietnam is part of thirteen free trade agreements (FTAs) that allow the import and export of goods with reduced or zero customs duties Rise of digital payments The rise of Vietnamese e-commerce as an alternative to brick-and-mortar sales is driving the development of its digital payments sector Improved reception of digital financial technology (fintech) and the COVID-19 pandemic has facilitated a spike in demand for contact-free and cashless transactions Nearly a third of Vietnam’s ecommerce transactions rely on cash payments currently, and this share is expected to shrink to a quarter by 2025 A rise in digital payments is likely to take over this seven percent reduction in cash payments The booming e-commerce market and favorable regulatory changes are driving the rapid adoption of digital payment modes in Vietnam E-wallets feature the highest growth projections of all payment modes, with their share to rise by over 15 percent in the next five years, compared to a nine percent estimated growth of other digital payment methods The accelerated development of Vietnam’s 4G infrastructure has dramatically brought down its mobile internet costs, making it the 10th cheapest in the world Affordable mobile internet access has increased the country’s mobile phone base to over 100 million 16 registered subscriptions This massive internet user base and affordable internet access have been one of the pillars for the rapid adoption of e-commerce and digital payments in Vietnam Cash is major for spending but digital wallets gaining popularity As digital wallets or e-wallets are expected to replace a large portion of cash transactions in Vietnam, there remains significant room for growth Vietnam has over 13 million e-wallet accounts that are divided among a large number of players Moca has gained immense popularity after joining hands with Grab in 2018 In terms of capital, Momo is endowed with plenty of funds after gaining a US$133 million investment, and ZaloPay enjoys its presence as the country’s only unicorn As per a DealStreetAsia report, the majority stake of WePay, a Vietnamese payments startup, was recently acquired by the Indonesian ride-hailing company Gojek This deal will help Gojek obtain an e-wallet license, allowing it to expand its digital businesses in the region Gojek also has gained partnerships with 24 local banks, 1000 merchants, and four international card issuers in this acquisition Another e-wallet player, eMonkey, received investments in terms of a majority stake from China-based Ant Financial Other leading players in this sector include Payoo, AirPay, SenPay, and Viettel Vietnamese e-commerce sites dominate web traffic As per iPrice, an e-commerce insights portal, over a quarter of Vietnam’s e-commerce webpage views were from Shopee, making it the country’s most visited e-commerce store in the third quarter of 2020 The top three e-commerce portals, including TheGioiDiDong, and Tiki covered over a half of this traffic together The leading eight web portals received over four-fifths of Vietnam’s total e-commerce webpage views in the third quarter of 2020 17 Vietnamese origin e-stores attracted over three in five page views The rest of the views were from international players such as Shopee and Lazada, covering about threequarters and one-quarter of web traffic As per the sectors, general e-stores commanded nearly 60 percent of traffic while electronics sites attracted over a third of total views Fashion, cosmetics, and other sections together represent under five percent of entire webpage views 2.3.2 Challenges of e-commerce in Vietnam E-commerce in Vietnam only has 20% of online transactions related to payment means, the rest 80% is done by receiving goods at the same time as transactions for payment This thing said up problems: that is the user title of Vietnam is not familiar with online payment for purchases through banks and online commerce transactions in Vietnam have quite a lot of redirects towards users' beliefs that are not adequate in the scope of B2C (Business to Customer) transactions About using means of transactions Currently, most transactions are done on desktop computers (71%), but in the next 510 years, transactions on smart mobile devices will certainly increase very quickly 18 because of changes and improvements The company's mobile devices have innovated rapidly in recent years About logistics services for e-commerce One of the main obstacles in the field of e-commerce in Vietnam is logistics, especially the delivery of goods to customers; Currently, only 34% of Vietnam's population currently live in urban areas, which shows that there will be some orders delivered in remote areas with difficult travel conditions In fact, up to 34.1% of consumers are not satisfied with the delivery service of e-commerce businesses In Vietnam, on average, it takes 5.6 days for products to reach the recipient - considered the second slowest speed in Southeast Asia Currently, some e-commerce sites have realized this important issue and have invested more to shorten the delivery time for customers, specifically Tikinow promises to deliver goods in hours on average, Shopee Delivery in hours and Sendo strives to deliver in hours In the near future, the competition between e-commerce sites in the Vietnamese market, in addition to the quality of goods served, is also the speed of delivery - this is considered one of the most important factors to attract customers The e-commerce playing field as predicted in the next few years will probably spend most of 70-80% for strong e-commerce corporations in the region and the world The rest is for Vietnamese e-commerce sites focusing on exploiting niche markets This has a very practical basis for two reasons: First, investment in e-commerce requires a very large amount of capital, so for Vietnamese enterprises, most of them are small and mediumsized, which is a big deal very difficult Secondly, Vietnamese consumers, especially young people, now mostly prefer to buy foreign goods through big websites like Alibaba, Lazada, Ebay for the reason that goods from other countries are rich and diverse format and quality are higher than similar Vietnamese goods, there has not been much progress in a strong way to compete with foreign goods 19 The number of internet users shopping in Vietnam is increasing rapidly, but it is still lower than in other countries in the region: in Indonesia, 90% of people use the internet to shop - the highest level in Southeast Asia while in Vietnam has only reached 70% - the lowest in Southeast Asia Most e-commerce businesses in Vietnam are slow to invest and invest little in market research, research and customer care Infrastructure and technology have not met the requirements making the competition of Vietnamese enterprises more and more difficult In addition, there are challenges in terms of network security, network safety while using, avoiding unnecessary damage to businesses and consumers Security, safety and privacy in e-commerce transactions in Vietnam are still real issues that need to continue to need solutions for business managers and state management agencies 2.4 Some solutions to promote e-commerce development in Vietnam Completing the legal environment: Vietnam needs to develop a proper legal framework to manage e-commerce on social networks in the context that e-commerce was booming in the country, while many provisions of the Law have become outdated and inadequate, even becoming a barrier to economic activities and public services in the electronic environment The VNG (Vietnam government) has been aware of the importance of catching up with Industry 4.0 and transforming the economy into a digital economy, so the VNG in recent years has adopted a series of guidelines and policies and action plans Typically, the Decision No 52-NQ / TW dated May 27, 2019 on the guidelines and policies to actively participate in the Fourth Industrial Revolution and related Resolutions These resolutions aim to increase deep awareness of Industry 4.0 to all ministries, localities and target groups, and at the same time provide a roadmap to complete favorable institutions to actively participate in Industry 4.0 and the national digital transformation process Complete infrastructure 20 E-commerce players should develop their own infrastructure to adapt to new challenges, ranging from order processing systems, warehouse capacity, to the speed of transportation The main factors driving forces of e-commerce in recent years can be attributed to the development of advanced telecommunication technologies such as 4G as well as artificial intelligence (AI) and machine learning They are the essential parts of logistics network as well as construction facility, show the attempt of VNG in completing national infrastructure and managing the economic cycle efficiently There are Decree No 163/2017 dated on December 30, 2017 providing for logistics services business and Directive No 21 / CT-TTg dated July 18, 2018 on promoting the implementation of solutions to reduce logistics fees, make the efficient connection of transport infrastructures This is the first time Vietnam has a legal document affirming its determination to develop the logistics service sector, and at the same time to devise practical, medium-term solutions to support logistics development in Vietnam.The action plan, regulations of logistics service from the drastic Directive of the Government and the Prime Minister are highly disruptive This creates a legal corridor and opens a healthy business environment for Vietnamese logistics operations to increasingly develop sustainably Secure e-commerce transactions The best defence is to assume the organization is a target and take proactive steps to avoid falling victim or prevent the use of stolen data in the systems, or related to incidences of payment fraud, counterfeit goods and intellectual property rights infringements which have increased in line with rising online sales Data breaches will continue to happen, forcing the adoption of smarter and more dynamic security to protect data and manage fraud Above all, users will continue to be the weakest link in the digital process Technology has been trying to solve this issue for a long time – from spell check in word processors and email applications to automatic braking in some of today’s cars Advancements in 21 payment security will continue to help drive down fraud as the EMV (Europay, Mastercard and Visa) chip did for counterfeit fraud but technology can only so much as it still needs to be implemented by people and people make mistakes Training human resources in the e-commerce industry Human resources are considered a core component of the digital economy, so, highquality human resources is the premise for the development of Vietnam's e-commerce industry in the current integration period The current human resource for Vietnam's digital economy is both redundant and deficient Therefore, training high-quality human resources to meet the needs of a digital economy is an urgent requirement Training should be started as soon as impossible from basic education in popular school to specialized education in university, designed differently for software developers and hardware makers and for those who apply them at work or home, so that we have a workforce with high expertise, good techniques, especially professional ethics Only then Vietnam can develop successfully a secure digital economy III Conclude E-commerce has brought great benefits to the whole society No country denies the importance of e-commerce, countries are increasingly promoting the development of ecommerce in developing the national economy E-commerce development in Vietnam is an objective necessity in the context that Vietnam is increasingly integrating into the world economy However, for e-commerce to develop, it is necessary to have support, orientation and supervision from the State and the Government in building a legal corridor for e-commerce activities, promoting the development of e-commerce payment infrastructure, upgrading information technology infrastructure, human resources 22 ... Ecommerce, and vice versa, the flourishing of E-commerce also promotes and gives rise to several branches of ICT, such as hardware and software for E-commerce apps and Payment services Platforms: E-commerce. .. advantages, and disadvantages I Overview of e-commerce 1.1 Definition of e-commerce Electronic commerce or e-commerce (sometimes written as eCommerce) is a business model that lets firms and individuals... role and utility of e-commerce with the development of the country in the actual conditions of Vietnam That's why we would like to study the topic EEcommerce: History, development, advantages, and