Key factors for the development of rural E-commerce in Vietnam based on the O2O model

E-commerce has explosively developed, followed by the O2O model which has gradually affirmed its advantages in agricultural products trading, especially fresh specialties. The construction of rural e-commerce in Vietnam based on this model certainly seizes opportunities to promote local farm produces (specialties, diversities) in Vietnam to travel throughout the country, and go global, to develop TAM NONG Vietnam policy in the digital era.

Economic & Policies KEY FACTORS FOR THE DEVELOPMENT OF RURAL E-COMMERCE IN VIETNAM BASED ON THE O2O MODEL Tran Nho Quyet1*, Guang Ji Tong1, Nguyen Thi Thanh Hien2*, Tran Nho Cuong2 Northeast Forestry University, China Vietnam National University of Forestry SUMMARY E-commerce has explosively developed, followed by the O2O model which has gradually affirmed its advantages in agricultural products trading, especially fresh specialties The construction of rural e-commerce in Vietnam based on this model certainly seizes opportunities to promote local farm produces (specialties, diversities) in Vietnam to travel throughout the country, and go global, to develop TAM NONG Vietnam policy in the digital era This research uses logistic regression and cross-sectional descriptive methods, aiming at shedding light on the key factor for the development of rural e-commerce in Vietnam based on the O2O model, which is a logistics management system, thereby evaluating and introducing solutions to apply the “The Last Kilometer” - a model of Chinese e-commerce as the basis for expanding rural E-commerce strategy in Vietnam The results showed the key point of kick-start rural E-commerce in Vietnam is logistic management, which can be described by the following factors: transport systems, delivery time and location networks, the supermarket chain, automatic counters and professional employees’ attitudes The results also confirmed that logistics management has an important role in the development of rural e-commerce in Vietnam according to the O2O model, and the application of the “the last Kilometer” solution of Chinese e-commerce is appropriate with the development trend of logistics in Vietnam Keywords: logistics management, O2O model, rural e-commerce, the last kilometer INTRODUCTION The emerging of information technology (IT) in the world has brought a big change in the aspect of market structure globally Information technology has created a platform for the digital economy where emergence of the electronic commerce (e-commerce) has taken place Since the 1990s, the Internet had entered gradually into the business environment and the ecommerce had become more and more populous in people’s life Comparing to the traditional trading mode, the e-commerce or online-business has many benefits and characteristics (Li and Liu, 2010) The potential benefits of rural e-commerce in the agricultural sector have been studied by many researchers It can be mentioned: Johnson, America in the 2010 document clearly stated that it was not until the technical information grows explosively did e-commerce *Corresponding author: hiencblsvfu@gmail.com chenlao1980@163.com; spread a large-scale connection, which simultaneously promoted policies in rural ecommerce areas, leading to farmers’ active participation and the improvement of the service process Through the local area and the households required for rural e-commerce, we set up a warehouse of trade data to promote agricultural exports (Thanh Tuyen Nguyen, 2010) E-commerce in the world has early developed; as a result, foreign scholars pioneered the research of correlative theories and the application of O2O mode techniques to bring forward studying the O2O risk method Theoretically, standards of prevention and risk management are put forth while it is proposed to frame the relevant structure technically Ai Rui basing on the eMarketer’s analyzed data found out that in terms of global scale practical application, O2O becomes a pattern of universal interest Especially in daily life, more and more people are fond of completing online transactions through the O2O model O2O JOURNAL OF FORESTRY SCIENCE AND TECHNOLOGY NO 12 (2021) 129 Economic & Policies business has gradually formed the e-commerce market, resulting in the mushroom growth of new cooperation such as Uber, eBay… which achieved howling success EMarketer estimated that 1.4 out of billion American Internet users utilized O2O mode, accounting for 71%, which increased 10% as popular as it had been Published in the Chinese Scientific journal, many types of research on the O2O model were written such as the creation of rural O2O model – analysis from “Manufacturers – Markets – Consumers”, information system for operating logistics in farm produce supermarket under O2O model, developing E-commerce adventure tourism in a rural area, comparing the O2O model of fresh agricultural products, analyzing the circulation of O2O farm produces ecommerce, etc All the authors HeShaoShan, ChenYuan, LiHaiQing, YeHuiFang have analyzed deeply into O2O model through Guangzhou agricultural products in the context of Internet development Author ZhangYan, who based on the O2O pattern, did profound research on fresh products then affirmed that this model makes farm produce easily spread all over China (ZhangYan, 2016) Increasingly developed as it is, rural Ecommerce has recently been such a new field in Vietnam Nevertheless, this model must be of paramount importance in promoting the online Gender Age Educational background Living region 130 exchange of farm produces (local specialties), boosting the regional economy as well as enhancing farmers’ income Not only countries in the world but Vietnam has also focused on agricultural E-commerce exchange, which contributes to the revitalization of the rural economy Therefore, we decided to carry out some researches on the O2O model, which paves the way for the development of Ecommerce in Vietnamese rural areas Here are our specific goals: Utilizing logistic regression method to clarify the key factor, which exerts positive effects on the enhancement of Vietnam rural economy according to O2O model Putting E-commerce solution “The Last Kilometer” of China into application in rural areas of Vietnam RESEARCH METHODOLOGY 2.1 Research data The research subjects are Vietnamese people from all over the country, who utilize Ecommerce, regardless of gender, age, educational background, or region We submitted a random survey of 700 people in the period of one year from December 2019 to December 2020 There were over 500 samples, however, after being selected, 436 papers were qualified enough to be collected Table Demographic characteristics N=436 Male 219 Female 217 50 year 51 Below high 53 school High school 74 Training course 64 Bachelor 223 Postgraduate 22 Rural area 177 Urban area 259 % 50.2% 49.8% 64.0% 24.3% 11.7% 12.2% 17.0% 14.7% 51.1% 5.0% 40.6% 59.4% JOURNAL OF FORESTRY SCIENCE AND TECHNOLOGY NO 12 (2021) Economic & Policies The design of the questionnaire concentrates R.Cox developed a model called Logistic on the willingness to utilize E-commerce and Regression (the 1970s) to analyze binary the factors influencing this behavior The variables questionnaire is consulted by experts and then we conduct a test survey to ensure that its content and words are suitable for the goals as well as the subjects The results of demographic characteristics are demonstrated in table 2.2 Model selection To identify the key factors, which exert influence on the development of E-commerce, our research utilizes logistic regression for each group of factors to find out whether there is a relationship between them and E-commerce using rate or not as well as a degree of changes of this ratio Afterward, all the specified variables are analyzed to build a general model = ∑ β0 + βiXi p is the probability of an event β0: is a constant β1, β2, βk: regression coefficients of independent variables x1, x2, , xk The coefficients show the strength and dimension that independent variables influence on the probability of a study event If the figure is positive, independent variables increase the likelihood (probability) of the study event and vice versa The equation above can be rewritten as follows ( The as well as identify the key element (1) )= ∑ groups (2) of factors taken into Binary Regression or Binary Logistic consideration include purchasing habits, local regression, which is a considerably common agricultural characteristics, logistic systems, model used in research, can estimate the knowledge of barcode in traceability probability of an upcoming event The To determine whether the “The Last characteristic of the binary recess is that the Kilometer” model of China is effective or not, variable depends on only two values: and 1, we use the cross-section description method to which results in the impossibility to analyze evaluate the actual state of this model with the usual form of recess since it will violate Frequency and quantity tables to depict the the assumptions Normally, it is clear that since characteristics, status, or value rate are utilized the two to indicate the proportion of each component manifestations in Binary regression, its residue trait in a particular characteristic in the sample will RESULTS AND DISCUSSION dependent have variable binominal has only distribution, which contravenes the assumption that the residue has 3.1 Results relationship with the dependent variable a standard one Consequently, there is no point 3.1.1 Habit with e-commerce The analysis result from table showed that in testing the audits in the usual regression The goal of logistic regression is to study the factors such as the use of social networks, and correlation between one (or more) factors that preference exert statistically significant impact (sig