unlicensed cho vay khách hàng cá nhân tại ngân hàng thương mại cổ phần công thương việt nam chi nhánh hưng yên

Establish the main research subject

Through the learning process, survey and investigation, the authors found that the required objectivity and subjectivity are imposed Agritrade in the short term (1-3 years) and long term are:

- AGRITRADE will become a focal point for trade promotion activities in Vietnam Agriculture.

- Approach E-commerce development trend and apply IT into operation on promoting agricultural products and local specialties.

- Develop E-commerce model to provide a link between producers, traders and consumer of agricultural products.

So I would propose the subject of my graduate thesis is “ E-Commerce development in agricultural trade promotion in Vietnam ”.

Research’s objectives 3 4 Research scope

The basic elements of E-commerce model

Table 0.1: The basic elements of E-commerce model for agricultural trade promotion

Developing a useful channel for both providers and consumers, ensuring that the process of resource management is done strictly, comprehensively and effectively.

Revenue models Products trading are agricultural products and local specialties provided by the providers, producers and other source.

Trend of internet shopping in Vietnam created a potential market for trade agricultural products online.

The overall assessment of a business's scope encompasses various factors, including competitor metrics such as revenue and profits Furthermore, the growing number and improved quality of suppliers play a crucial role in determining the market's potential.

Agritrade's primary objective is to ensure consistency in its strategic direction while fostering optimal infrastructure, financial resources, and skilled personnel to effectively implement its model Additionally, it benefits from the support of functional departments and crucial assistance from the Ministry of Agriculture and Rural Development (MARD).

Researching and developing a convenience and simple Ecommerce website for providers and customers.

Planning for implementation of activities to promote website.

Providing marketing campaign to show about the website and organizing training courses to help sellers know how to sell their products online.

The company wanted to sustainable development needs a well organized system to ensure effective implementation of plans and business strategy.

Management Team responsible for making management strategy of enterprises Good team governance can make decisions to change or restructure business models when needed, contribute to build customers confidence.

Assign content to develop E-commerce model for Agritrade

This research aims to develop an E-commerce model for Agritrade by conducting surveys to assess the current state of its activities and evaluating internal and external impact factors Through a combination of surveys, interviews with staff and customers, and insights from agricultural experts, I will analyze the collected data to determine the feasibility of implementing an E-commerce model The model will be based on key factors such as market dynamics, human resources, financial considerations, and infrastructure requirements Additionally, I will focus on enhancing the sales process, order management, product delivery, and support services to optimize Agritrade's E-commerce operations.

Research methods

Data collection methods 5 6.2 Data analysis methods

6.1.1 Method of investigation of primary data -

+ Candidates of survey: The main Candidates of survey are Agritrade’s staffs and customers (suppliers, producers and buyers).

 For Agritrade’s staff: promotion situation of agricultural products, needs, capabilities and methods of application E-commerce model.

 For customers of Agritrade: The need of the applying E-commerce model on promoting agricultural products.

 For Agritrade’s staff: issue and collect directly at the Agritrade’s office.

Agritrade prioritizes its customers by engaging with providers, producers, and consumers in the Northwest provinces Most questionnaires are distributed and collected during visits and displays at Agritrade's trade fairs, while others are sent via email to officers and students.

The survey data will be collected and updated in a Microsoft Excel database for efficient processing and analysis This method aims to gather information quickly and cost-effectively, ensuring precise handling for the most accurate assessment and results.

+ Advantages and disadvantages of this method 

Advantages: Fast, convenient and efficient.

 Disadvantages: customers have little time to study carefully the questionnaire and they may feedback with incorrect answers.

+ Sample of survey: I issue 45 questionnaires to Agritrade’s staffs and 30 copies to the Agritrade’s customers.

In an insightful interview, experts discussed the future of the agricultural products and foodstuffs market, emphasizing the importance of strategic business approaches for local specialties They highlighted the necessity of implementing an effective e-commerce model to enhance current trade promotion activities at Agritrade Additionally, the conversation addressed both the challenges and benefits of adopting e-commerce strategies for agricultural promotion, underscoring the potential for growth in this sector.

+ Method of Investigation: Organizing Interview at Agritrade’s office.

+ Objects of interview: Director and head of Business Department.

+ Advantages and disadvantages of this method:

The advantages of this approach include the ability to observe visual attitudes and responses to questions, allowing for a thorough assessment of information accuracy Additionally, we will gather subjective comments from Agritrade regarding agricultural practices.

 Disadvantages: Difficult to get an overview and objective assessment of the market, the business model of Agritrade.

6.1.2 Methodology of Survey with secondary data

Through documents, reports and statistical relevance of reputable sources such as Ecommerce report of Ministry of Industry and Trade, the relevant documents on the website of Agritrade

The synthesis and analysis of data rely on average values, utilizing Microsoft Excel to process collected survey forms The company's performance statistics are examined through detailed analytical illustrations and diagrams, alongside qualitative methods for comprehensive insights.

This article discusses the process of analyzing and evaluating information through strategically crafted interview questions, spanning from industry-wide trends to specific company insights Utilizing a meta-analysis approach, the study employs inductive reasoning to assess various issues, enabling the collection and identification of common characteristics and patterns within the data.

THEORETICAL FRAMEWORK

E-commerce

Electric commerce (E-commerce) is a relatively new field In the development process it has many different names: “Online trade”, “Cyber trade”, “Electronic

E-commerce, also known as paperless trade or commerce, has gained widespread recognition and is now commonly referenced in international legal documents This term is often used interchangeably with other names that convey the same concept.

- The concept of e-commerce in the narrow sense

In narrow sense, E-commerce merely restricted in sale and purchase of goods and services through electronic facilities, especially Internet and other communication networks.

E-commerce, as defined by the World Trade Organization (WTO), encompasses the electronic exchange of goods across borders, involving the production, advertising, sale, and distribution of products through telecommunications networks Key examples of electronically distributed products include books, music, and videos, which are transmitted via telephone lines or the Internet.

E-commerce, as defined by the E-commerce Commission of the Asia-Pacific Economic Cooperation (APEC), refers to business activities conducted through the transfer of data and digital information technology This broad definition encompasses various online commercial transactions, highlighting the integral role of digital platforms in modern commerce.

In broad sense, E-commerce is financial and commerce transactions by electronic means such as electronic data interchange, electronic funds transfer, sending or withdrawals by credit card and other activities.

1 Source : “Thương mại điện tử”, www.wikipedia.org

2 Understanding WTO: Electronic Commerce, www.wto.org

According to this view, there are two definitions generalize the most complete range of E-commerce activities:

The UNCITRAL Model Law defines the scope of E-commerce as extensive, encompassing nearly all areas of economic activity, with the sale and purchase of goods and services representing just a small fraction It emphasizes that the term "commercial" should be interpreted broadly to include all types of commercial relationships, whether contractual or not These relationships cover a variety of transactions, including trade for the supply or exchange of goods and services, distribution agreements, commercial representation, factoring, leasing, construction, consulting, engineering, licensing, investment, financing, banking, insurance, exploitation agreements, joint ventures, and various forms of industrial or business cooperation, as well as the carriage of goods or passengers across different modes of transport.

E-commerce, as defined by the European Commission, encompasses conducting business through electronic means, involving the processing and transmission of data in various formats such as text, sound, and images This definition highlights that "Commerce" in "E-commerce" extends beyond traditional trade in goods and services, encompassing a broader spectrum of economic activities The integration of E-commerce is poised to transform the operational dynamics of economies worldwide.

E-commerce encompasses all business strategies and management processes conducted through electronic channels, primarily relying on the Internet and its associated technologies It is essential to recognize that E-commerce does not merely transform traditional business media but requires a comprehensive integration of various business functions.

If the system link from the fields of applications have different features or links through the boundaries of the enterprise for this purpose, this is a traditional

The UNCITRAL Model Law on Electronic Commerce, established in 1996, outlines key principles for the integration of electronic transactions A significant focus is on enterprise application integration, with enterprise content management (ECM) recognized as a fundamental technology that supports e-business operations effectively.

E-commerce and traditional commerce, including the steps:

1 Consumers and providers find each other, consumers want to find a reliable supplier, while suppliers are conducting promotional activities, marketing, consulting and customer support, create trust and entice consumers to own.

3 Organization coordination and delivery of goods;

5 Confirm the correctness of every step in the purchasing process.

E-commerce distinguishes itself from traditional trade through its unique features, such as the creation of a "virtual store" accessible 24/7, eliminating the constraints of time and geographical distance This model allows for direct transactions without intermediaries, fostering efficient online marketing channels and enabling online surveys It is particularly effective for delivering digital products and services, including movies, music, e-books, and consulting Success in the network economy is not solely reliant on large corporations with substantial resources, but rather on a company's ability to adapt swiftly and flexibly to economic changes, highlighting the importance of sensitivity to market dynamics.

The formation of E-commerce

E-commerce was born as an inevitable development in the harsh competitive environment To survive, Businesses must apply technological advances in effective way IT brings the magic of transformation itself and affects most sectors including the economy It changes the world The development of mature tools such asInternet,

Email, and World Wide Web is the reason to release a new trading method: E- commerce.

Traditional document-based transactions are costly and time-consuming, significantly impeding international trade, particularly as trading volumes rise Additionally, these conventional methods expose numerous weaknesses Consequently, this presents an ideal opportunity to introduce new trading methods that offer greater advantages.

In 1969, the US Department of Defense launched the Advanced Research Projects Agency Network (ARPANET), marking the beginning of the world's first operational packet switching network, which eventually became the backbone of the global Internet During this period, the financial services industry began to automate processes such as check processing, credit card transactions, and Electronic Funds Transfer (EFT), facilitating online payments and direct debits By the early 1980s, e-commerce started to expand through electronic data interchange (EDI) and email, enabling businesses to exchange documents like purchase orders online By the late 1980s, e-commerce had become integral to business operations, although it primarily functioned outside the public Internet As technology evolved, e-commerce began to thrive alongside the growing global Internet, despite initial challenges in user convenience and automation.

The launch of the World Wide Web in 1992 revolutionized the Internet, making it more user-friendly with improved interfaces and graphics, significantly reducing the technical skills required for navigation compared to earlier times.

E-commerce is developing rapidly on the global scale based on the industrial development of information technology (IT) IT industry is gradually occupied the leading position in the national economy of many countries Especially the organic combination of three components: industrial computers (networks, computers, electronics, software and other services), communications (landline telephone and satellite) and internal information (databases, audio-visual products, entertainment,publishing and providing information ) This combination is creating a new nature and role of the IT industry.

The situation of E-commerce development in Vietnam

The number and quality of websites play a crucial role in assessing the development of E-commerce, even though they do not directly measure E-commerce application levels In Vietnam, where direct electronic data exchange between strategic partners is still evolving, websites serve as the primary platform for businesses to advertise products, promote services, and engage in both B2B and B2C E-commerce transactions.

According to a 2005 E-commerce report by MoIT, 46.2% of 504 surveyed enterprises had websites, primarily located in urban areas with good IT infrastructure By 2008, a survey of 1,600 companies indicated that most had adopted E-commerce applications to varying degrees, with 45% having websites, a 7% increase from 2007 The percentage of regularly updated websites with online ordering functions was rapidly rising By 2010, nearly all surveyed businesses were utilizing E-commerce applications The survey revealed that 100% of businesses were equipped with computers, averaging 25.8 per enterprise, and 98% had Internet access, with 89% using broadband or leased lines Additionally, over 81% of enterprises used email for business, with usage rates of 96% among large enterprises and 80% among small and medium-sized enterprises.

After four years of implementing the overall Plan for E-commerce development from 2006 to 2010, E-commerce is not only located on two major cities, Hanoi and

Ho Chi Minh City, it has grown at most provinces of the country In the survey in

In 2009, a survey by the Ministry of Information Technology revealed that 53% of enterprises were located outside Ho Chi Minh City and Hanoi Notably, all local businesses were equipped with computers, averaging 21.5 computers per enterprise, which translates to approximately 10.3 employees per computer Furthermore, the majority of these businesses had Internet connectivity, predominantly through ADSL, with only about 2% relying on dial-up connections.

In recent years, the rapid growth of the Internet and e-commerce has made online sales increasingly popular among urban residents, including officers, students, and housewives E-commerce websites have become the primary platform for purchasing a wide range of goods and services, such as airline tickets, electronics, and travel bookings By late 2009, these platforms gained significant traction, with flexible payment options like online payments, bank transfers, and cash payments catering to diverse buyer needs Additionally, the rise of social networks with large user bases has transformed them into viable marketplaces, prompting businesses to invest in targeted advertising and direct customer engagement As online trading continues to evolve, it is poised for substantial growth in the coming years, particularly with the increasing acceptance of electronic payments among consumers.

A recent survey of E-commerce website owners revealed that 87.6% of businesses target other businesses and organizations, while 65.7% focus on consumers Consequently, B2B transactions are poised to become the preferred approach for companies implementing E-commerce applications in the future.

The frequency of website updates is a key indicator of a site's quality and professionalism, reflecting the commitment of businesses to maintain their online presence A survey revealed that over half of businesses update their websites only once a month or less, while fewer than 30% conduct daily reviews Additionally, only about 30% of these sites feature e-commerce capabilities These statistics indicate that many Vietnamese businesses fail to recognize the importance of their websites as vital communication and interaction channels with customers, resulting in inadequate investment of time and resources for effective website development and maintenance.

A recent analysis revealed that 56.2% of businesses manage their own websites, while 43.8% rely on external service providers This disparity contributes to the subpar information and communication features often found on these websites.

A recent survey revealed that investment in E-commerce applications constitutes a relatively small portion of total annual operating expenses, with over 80% of businesses allocating a maximum of 5% for these initiatives This investment covers costs such as E-commerce software, website maintenance, and associated human resources Only 14% of businesses invest between 5-15% of their total operating expenses, while a mere 3.6% exceed 15% in E-commerce-related investments.

E-commerce transactions 1.4.1 The forms of E-commerce activities a.E-mail

Email, or Electronic Mail, allows partners—including consumers, businesses, and government agencies—to exchange information quickly and efficiently over the internet It offers rapid transfer speeds, enabling users to send the same message to multiple recipients simultaneously, regardless of their location Additionally, email is a cost-effective alternative to traditional mailing and telephone communication, making it an essential tool for modern correspondence.

Electronic payment is payment via electronic messages instead of cash handing. With the development of E-commerce, electronic payment has expanded into new areas should be addressed:

Financial Electronic Data Interchange (FEDI) specializes in serving the electronic payments between companies trading electronically with each other.

Internet cash, also known as digital cash, is a form of currency that can be purchased from banks or credit institutions and easily converted into other currencies online It is increasingly utilized both domestically and internationally, thanks to advancements in digital technology The growing popularity of internet cash can be attributed to several advantages: it facilitates payments for small-value items and subscriptions due to low transaction costs, eliminates the need for pre-agreed regulations between parties, and ensures the security of transactions by guaranteeing the receipt of legitimate funds, thus reducing the risk of counterfeiting.

An electronic purse, often referred to as an electronic wallet, serves as a digital platform for managing internet cash, primarily utilizing smart card technology This innovative payment method allows users to transfer funds to anyone who can read the smart card, employing techniques akin to those used in online cash transactions.

The card resembles a traditional credit card but features an electronic chip on the back instead of a magnetic strip, designed to securely store digital currency This digital money is only debited upon usage, ensuring that transactions, such as invoice payments, are authenticated for accuracy This innovation enhances the landscape of digital banking and digital securities trading.

The electronic payment system of banks is an advanced framework that encompasses various subsystems, including customer transactions through telephone and internet channels, electronic funds transfers, and credit card payments It facilitates payments between banks and settlement agents, such as restaurants and supermarkets, as well as internal banking transactions and interbank payments This comprehensive system enhances efficiency and convenience in financial transactions.

Electronic Data Interchange (EDI) is the automated transfer of structured information between computers of different organizations, allowing them to trade without human intervention Defined by UNCITRAL, EDI involves the electronic exchange of information using a standardized format It is predominantly utilized globally for purchasing and distributing goods, including sending orders, confirmations, shipping documents, and invoices Additionally, EDI serves various other functions, such as processing payments for medical examinations and exchanging test results This communication primarily occurs through external networks, often termed "commercial networks." Notably, EDI predates the internet and originally operated through Value Added Networks.

A Value-Added Network (VAN) serves to connect Electronic Data Interchange (EDI) partners by facilitating communication between electronic computers This system not only enables efficient data exchange but also acts as a repository for storing and retrieving information By leveraging a VAN, businesses can seamlessly communicate with computers across various global locations, enhancing their operational connectivity.

Content data is the goods that people need its content (in other words, the content is a commodity) not themselves carrying content such as news, books newspapers, music,

Benefits of E-commerce for businesses

E-commerce affects to most major types of business costs in the production process and conducting commercial transactions, including:

E-commerce significantly reduces operational costs for businesses by enabling them to replace multiple physical grocery stores with a single virtual platform Operating around the clock, online stores can cater to a global customer base, enhancing accessibility and convenience This shift not only streamlines management processes but also lowers expenses, particularly in inventory management The 24/7 availability of virtual stores stands out as a key advantage of e-commerce, making it an attractive option for both businesses and consumers.

Online access to product and service information empowers customers to enhance their skills and knowledge, enabling them to evaluate prices and implementation processes effectively The future of e-commerce promises continuous access to websites, allowing customers to gain deeper insights into product details and pricing This evolution will elevate communication between clients and professional sales or support teams Additionally, e-commerce enterprises can achieve significant cost savings through direct online payments, with transaction fees for electronic payments potentially dropping to as low as $0.01 compared to approximately $1.20 for traditional paper check transactions.

E-commerce is fundamentally transforming the sales process for businesses, prompting a reevaluation of customer communication strategies New market entrants must also conduct research to effectively embrace e-commerce, leveraging its benefits to connect with a broader customer base.

- Expenses related to procurement of the enterprise

E-commerce has significantly impacted procurement costs for businesses, particularly in the realm of maintenance, repair, and operations (MRO) This shift does not encompass the expenses associated with acquiring final products or raw materials, highlighting the focused influence of online platforms on operational procurement strategies.

In traditional commerce, the procurement of Maintenance, Repair, and Operations (MRO) supplies involves a lengthy process where purchasing staff complete requirement forms and sift through various catalogs to find suitable products at competitive prices This complex process often leads to administrative costs that exceed the value of the indirect inputs, with companies generating over $500 million in revenue incurring order costs between $75 and $150 per MRO product, according to the OECD The implementation of e-commerce in procurement aims to streamline this process by directly connecting buyers and suppliers through online platforms By utilizing electronic catalogs, businesses can swiftly locate necessary products and verify product information, ultimately reducing input costs and enhancing operational efficiency.

Large companies previously relied on proprietary value-added networks (VAN) for MRO supply through EDI However, the cost of EDI on the web has significantly decreased, now only about one-tenth of the VAN cost As a result, many large organizations are transitioning their MRO procurement from VAN to web-based solutions.

E-commerce has changed the logistics activities of business such as packing, delivery and turns it into information- business The impact of E-commerce to the cost of logistics enterprises is great significance, especially for logistic companies such as Federal Express (FedEx) or DHL.

FedEx is a good example It began receiving orders online, shipping parcel packages and tracking them through their own networks since 1983 It took nearly

12 years to make the number of clients reached to 50,000 But after only three years (1995-

In 1998, FedEx introduced web-based services, significantly increasing its customer base to 1 million Today, the company estimates that over 70% of the 3 million packages and parcels processed daily originate from online transactions.

The rise of Internet applications has enabled enterprises to swiftly respond to complex orders while effectively tracking and monitoring them Consequently, leading logistics companies like DHL, FedEx, and United Parcel Service (UPS) have integrated their logistics services, including transportation, distribution, packing, loading, and unloading, directly into their websites.

In today's digital landscape, businesses can effortlessly track their packages globally, thanks to the advantages of online tools This streamlined shipping and goods inspection process not only accelerates payments but also provides companies with the flexibility to adjust production plans Furthermore, it aids in minimizing unnecessary transportation and unloading costs, enhancing overall operational efficiency.

In summary, by changing the structure, cutting costs of sales, cost of procurement and cost of logistics, E-commerce are making new success factors.

IT and communications enable businesses to trade, cooperate, and compete at unprecedented speeds and lower costs The rise of eCommerce has led to the formation of business groups connected through network links, establishing new divisions and rules for combined production This innovative approach creates more efficient structures than traditional unstructured enterprise networking The concept of "virtual networking" allows companies to share real business risks through enhanced cooperation across all activities, driven by comprehensive reform.

Early adopters of E-commerce have typically enjoyed favorable conditions for developing innovative business models However, as E-commerce transactions increasingly involve large enterprises, the creation of new business models becomes significantly more complex.

Enterprises that adjust their strategies based on technology may encounter significant risks if business leaders do not clearly define the rationale behind these strategic shifts A notable example is IBM's initiatives in 1996, where the company launched two major projects: an information-providing electronic content platform and World Avenue, an e-supermarket However, IBM soon recognized its deficiencies in editing, marketing, and retail capabilities, which ultimately affected the success of these ventures.

To operate as a 24/7 enterprise, businesses must focus on the qualifications and adaptability of their workforce, along with fostering innovative capabilities In the fast-paced world of e-commerce, companies must continually learn and adapt to the complexities of evolving markets and technologies This involves acquiring and processing diverse information to enhance their understanding of the enterprise, as well as insights about customers, suppliers, and market dynamics, necessitating constant innovation.

The E-commerce requirements

E-commerce is not a spontaneous initiative; it is the consequences of the development of digitalize IT, and the electronic computer engineering Therefore, we just only really have and truly carry out rich content and effective E-commerce when we have a stable infrastructure of information technology (including the two divisions: electronic computing and electronic media).

The infrastructure encompasses both enterprise and national standards, aligning them with international benchmarks in engineering and technology It serves not just individual businesses but also functions as a national system, integrating into a broader global information technology framework, which includes distribution networks and worldwide telecommunications Additionally, it is designed to support individual trading systems tailored to the needs of consumers.

Technological infrastructure encompasses both availability and affordability, ensuring that the costs associated with IT equipment—such as telephones, computers, and modems—as well as communication services like telephone and internet access, are low enough for widespread user access This is particularly crucial for developing countries, where living standards tend to be lower.

The rapid growth of e-commerce has led to an increased focus on integrating advanced security technologies into its infrastructure Ensuring security is crucial not only for economic organizations but also for national security.

E-commerce touches to all people, from consumers to producers, distributors, government agencies, and both the technology and development.

The rise of e-commerce necessitates two key requirements: first, individuals must be adept at navigating online platforms; second, there is a critical need for skilled IT professionals who continuously update their knowledge of emerging technologies to support the digital economy and e-commerce Additionally, these professionals should possess the ability to develop software tailored to the operational demands of the digital landscape, reducing dependency on external resources.

In the realm of online business, proficiency in English is essential for all participants, as it serves as the primary language for traditional trade and e-commerce This challenge predominantly affects developed countries and underscores the need for significant transformations in education and training systems to meet the demands of e-commerce.

Commercial transactions by electronic is setting up very high demands on security and safety, especially when it operates on the Internet/Web.

Many individuals remain hesitant to engage in online business due to concerns over security and data protection Buyers fear that their credit card information may be compromised, leading to unauthorized withdrawals, while sellers worry about non-payment for electronic contracts Additionally, the rising number of cyberattacks, even on well-protected networks, exacerbates these fears Hackers employ various tactics, including phishing, password cracking, and denial-of-service attacks, which heightens the apprehension surrounding online transactions.

Modern encryption techniques, such as cryptography, utilize advanced methods like public key and secret encoding with key lengths ranging from 1024 to 2048 bits Technologies like Secure Sockets Layer (SSL) and Secure Electronic Transaction (SET) play a crucial role in enhancing security Additionally, the implementation of electronic signatures further strengthens the integrity and authenticity of digital communications.

A digital signature is an electronic representation of a signature, validated through decoding However, sophisticated decoding techniques can detect the encryption used Consequently, developing a national strategy for coding, alongside safety information programs for agencies, enterprises, and individuals, has become a significant challenge.

E-commerce can only be done when there actually exists a development financial payment system It allows automatic payments (smart cards that have special importance for retail business) Without this system, the E-commerce application is only exchange the information and transaction still ends with direct payment or the traditional means of payment Then the effects of E-commerce are lower and it may not enough to offset the costs of technology equipment spent.

The financial payment system linked to product coding and numbering is a global issue governed by international standards set by organizations like EAN International and the Uniform Code Council This system utilizes barcodes to encrypt all products and services with a unique 13-digit number, while each company is assigned a specific code number ranging from 100 onwards.

100 000 digits The integration and establishing the system of product and companies code (commercial coding) for an economy (especially the economies of developing countries) is not simple.

Market collapses are often rooted in asymmetric information, a concept recognized in trade and information theory This occurs when sellers possess knowledge about product quality that buyers lack, leading to a disconnect in perceptions of value Consequently, sellers struggle to assure buyers of their products' quality, resulting in buyers settling for an average price This dynamic ultimately drives buyers to purchase predominantly low-quality products, as the existence of high-quality options remains obscured by the information gap.

In the realm of E-commerce, consumers face challenges as they cannot physically inspect or test products before purchase, leading to potential misinformation and risks from fraudulent entities This highlights the need for an efficient and cost-effective quality assurance intermediary to protect consumer interests Such mechanisms are particularly vital in developing countries, where traditional practices involve direct interaction with goods, allowing customers to evaluate products through sensory experiences before making a purchase.

Governments must assess whether the information society and the Internet present a threat or an opportunity, a challenging decision exemplified by France, which only declared it a chance in 1997-1998 Following this strategic affirmation, France initiated the development of a supportive economic, legal, and social environment for the digital economy and E-commerce, implementing various administrative services online, including income tax, mail, weather forecasts, and train schedules.

+ Recognize the legality of E-commerce transactions.

Electronic signatures are legally recognized as valid forms of consent, encompassing both data messages and digital signatures Various legal institutions and authorized agencies are responsible for the authentication and certification of these electronic signatures, ensuring their legitimacy in legal contexts.

+ Legal Protection of E-commerce contracts.

+ Legal Protection of electronic payment (including the legislation of the agency issuing the payment card).

+ Legal Regulations for data that originate from state (government agencies and the Central Government), local government, state enterprises.

+ Legal protection for intellectual property rights (including copyright) relating to all forms of electronic transactions.

Definition and content of Trade promotion

According to the Commercial Law 2005 of Vietnam, Trade Promotion encompasses activities aimed at enhancing and identifying opportunities for the buying and selling of goods and services This includes various methods such as sales promotions, commercial advertising, and the display and exhibition of products and services, along with trade fairs and exhibitions.

Trade Promotion encompasses marketing strategies implemented in retail settings between partners, designed to boost product demand This technique leverages special pricing, display fixtures, product demonstrations, value-added bonuses, and complimentary gifts to enhance visibility and encourage purchases in stores.

1.7.2 The purposes of trade promotion

The purposes of trade promotion are supporting businesses to sell out their products when they face to the competition of others providers on the market.

Trade promotion plays a crucial role in business operations and is a vital component of production Many businesses and countries allocate a significant portion of their total costs, ranging from 10% to 25%, to trade promotion activities, which directly impacts selling prices.

Trade promotion activities particularly developed in the capitalist countries, where competition is regular occurrence and very severe on the market.

For that characteristic, the main purposes of using trade promotion as following:

Promotion policies have a large role in marketing activities of business With these policies, businesses can impulse product offering and sales, increase revenues, and improve business efficiency.

Promotion and business support activities enhance the trade processes of enterprises, making them more efficient and convenient By increasing sales volume, these initiatives enable businesses to enter new markets and expand their market share while attracting potential customers As a result, enterprises can achieve steady growth and effectively navigate challenges in the marketplace.

1 Term 10, Article 3, Commercial Law of Vietnam, 2005.

2 “Trade Promotion” AllBusiness.com Nov 2010.

.

* Create competitive advantage for businesses

Trade promotion activities play a crucial role in capturing customer attention and fostering interest, while simultaneously boosting the business's reputation and prestige Over time, these initiatives cultivate a positive image for both the business and its products, building customer trust By enhancing the business's credibility, trade promotions can attract more potential customers, ultimately providing a competitive edge over rivals in the market.

* Communicate information about business and products to consumers

The promotion policy serves to effectively communicate product and business information to consumers, ensuring that potential customers not only receive but also comprehend this information It is crucial for the information to be valuable, fostering positive consumer engagement Without a well-defined promotion policy, businesses miss out on essential feedback regarding product quality, design, after-sales services, pricing, and distribution networks.

Promotions are strategic activities undertaken by traders to enhance the sale of products or services by offering customers specific benefits The primary goal of these promotions is to stimulate consumer interest, encouraging individuals to make purchases and increase their overall buying frequency.

Commercial advertising involves promotional activities by businesses aimed at introducing their products and services to potential clients It encompasses various elements, including images, sounds, voices, words, symbols, colors, and lights, all designed to convey advertising messages effectively.

Means of commercial advertising is including: the mass media, the means of communication, the types of publications, all kinds of boards, signs, banners,panels, posters…

1.7.3.3 Displaying and introducing goods and services

Displaying and introducing goods and services is the trade promotion activity of traders that use goods, services and documentation to introduce customers those goods and services.

Effective methods for showcasing products and services encompass creating a showroom, presenting them at trade centers or during sports, cultural, and artistic events, organizing conferences and seminars, and promoting them online.

Fairs and trade shows are organized events that promote trade by showcasing goods and services at specific times and locations These events provide traders with the opportunity to present their offerings, enhance visibility, and seek potential contracts for their products or services.

Trade Promotion in E-commerce

Trade promotion in e-commerce involves leveraging digital platforms to effectively present, market, and inform consumers about products or services, ultimately persuading them to make a purchase.

Ecommerce platforms like email and websites play a crucial role in promoting products and enhancing the reputation of businesses By effectively showcasing their offerings, companies aim to build a strong brand image that resonates with the online audience, encouraging regular engagement from internet users.

Trade promotion in E-commerce is actually the way businesses use the Internet features to deliver the product or service to market.

The rule of trade promotion in E-commerce as well as promotion in the traditional business environment is the order: Product - Price - Promotion – Place.

Promotion in E-commerce is hindered by the technological infrastructure of the target market, including factors like the number of Internet users, their usage levels, and network access speed When infrastructure is inadequate, consumers have limited access to the Internet, which restricts their ability to find information, engage in online shopping, or participate in online auctions As a result, trade promotion activities in E-commerce struggle to effectively reach and influence consumers in such markets.

The difference of E-commerce applications in agricultural trade promotion

Trade promotion for agricultural products is crucial for enhancing Vietnam's export potential Acknowledging its significance, the government has implemented policies to bolster trade promotion efforts both domestically and internationally These initiatives not only facilitate the entry of Vietnamese agricultural products into new and promising markets but also enable local products to better compete and establish a stronger presence in the domestic market.

Many agricultural products possess high quality yet lack significant added value compared to industrial goods This issue is compounded by the fact that most of these products are linked to small and medium enterprises, which are often localized and dependent on the interests of larger agricultural producers Consequently, enhancing trade promotion activities is essential, as it not only helps in discovering new markets for agricultural products but also plays a vital role in ensuring social security and fostering rural development.

Despite recognizing the importance of trade promotion for agricultural products, many agricultural businesses are hesitant to engage due to high funding requirements and a lack of resources This highlights the need for innovative and cost-effective methods for agricultural trade promotion, with e-commerce emerging as a viable solution However, the low-profit margins on agricultural products deter businesses from fully developing an e-commerce network Therefore, it is essential for government agencies to take the lead in establishing effective channels for marketing and trading agricultural products, creating a platform for producers and trading enterprises to connect, collaborate, and transact directly.

BACKGROUND AND REAL SITUATION OF AGRICULTURAL

Overall assessment of agricultural trade promotion activity of Agritrade

2.2.1 Overview of Trade Promotion Center for Agriculture (Agritrade)

Trade name (Vietnamese): Trung tâm Xúc tiến thương mại nông nghiệp

English Name: Trade Promotion Center for Agriculture.

Abbreviation: AGRITRADE Địa chỉ: Fair Exhibition, Economic transaction and Commerce Area , No 02 Hoang

Quoc Viet - Cau Giay - Hanoi

Website: http:// agritrade.mard.gov.vn

Email: Info-media@agritrade.com.vn

The Vietnam Trade Promotion Center for Agriculture (AGRITRADE), previously known as the Vietnam Agriculture Fair Exhibition Center (VAFEC), operates under the Ministry of Agriculture and Rural Development Its primary role is to serve as the central hub for promoting Vietnamese agricultural trade and managing the Vietnam Agricultural Exhibition located at No 2 Hoang Quoc Viet, Cau Giay District, Hanoi.

There are 2 phases of forming a today AGRITRADE:

+ Phase 1: 2003 – 2008: Vietnam Agriculture Fair Exhibition Center (VAFEC)

+ Phase 2: 2008 – up to date: Vietnam Trade Promotion Center of Agriculture (AGRITRADE)

According to Decision 3253/QD-BNN issued by MARD, Agritrade is structured into six key functional departments: the Administration and Personnel Department, the Planning and Finance Department, the Business Department, the IT and Market Research Department, the Exhibition and Fair Department, and the Events and Media Department.

The employees in each Department will be arranged in order to ensure adequate operating conditions based on the functions and tasks of all departments.

The Agritrade Board of Directors is comprised of a Director and two Deputy Directors The Director oversees the overall operations, planning, and personnel management of Agritrade One Deputy Director is responsible for trade promotion, while the other manages internal affairs and business operations.

Chart 2.1: Organization structure of Agritrade:

About employees, there are total 42 people working in 6 functional departments

Agritrade stands out from other government agencies with a younger workforce, averaging around 36 years of age Most employees have received their education from national colleges and universities, with three holding master's degrees, 25 possessing bachelor's degrees, and the remainder having completed higher elementary and intermediate education.

2.2.2.1 Planning and implementing trade promotion programs for Vietnam agriculture:

- Planning and implementing annual trade promotion programs.

- Organizing events, seminars, meeting of agricultural trade promotion.

- Organizing synthesis promotion activities: combining commercial and tourism investment

- Organizing business delegations to survey the agricultural market, attend trade fairs, domestic and foreign investment forums.

2.2.2.2 Information, communications, market research and trade promotion policies:

- Database collection, research, analysis, forecasting and providing information of production and agricultural, forestry, fisheries, handicrafts markets.

- Support to policies of Ministry of Agriculture and Rural Development about export promotion, trade development for agricultural, forestry and fisheries, handicrafts…

- Construction, management and development e-commerce website.

- Branding, product promotion, and introducing scientific and technological achievements in agriculture, forestry, irrigation, fisheries

- Compiling, printing and distribution of trade promotion publications 2.2.2.3 Consulting and technology transfer:

- Construction and implementation consulting activities in training; transfer of scientific and technological fields related to manufacturing, business and trade promotion.

- Coordinate training and support on technical training, management and trade promotion.

- Consulting, supporting business for market development.

- Design, construction, decorating booths for trade fairs, seminars, conferences and events.

- Restaurant business, office, travels agencies serving the agricultural trade promotion activities.

- Agents, trading, consignment of agricultural commodities and organizing activities in care goods and means of appropriate tasks.

- Implementation of joint ventures, contracting with other organizations and individuals serve domestic and foreign trade promotion activities.

- Organizing entertainment services to serve the agricultural trade promotion.

2.2.3.1 Organizing various local trade fairs annually:

Lunar New Year Trade Fair

Fair of Trade village and Viet Nam competitive festival of handicraft and fine arts

AgroViet – Vietnam International Agriculture Trade Fair

Vietnam Exhibition on Agriculture Machines and Tools

2.2.3.2 Or ganizing the MARD’s trade pr o mot ion activitie s in ove r seas markets (2005- 2010):

Participating Beijing Agriculture trade fair 2005

Participating ANUGA 2005- the International trade fair of foodstuff, vegetables and fruit, and beverage in Germany.

Foodex Japan 2006- the International trade fair of foodstuff and beverage.

Participating EURO FLORA 2006- the international trade fair of flower and decorative plan and surveying the Italy’s market.

Participating the fourth China International Small and Medium Enterprise Fair 2007 in Guang Zhou- China.

Participating SIAL 2006, 2008 and 2010 in Paris- France.

Participating SIAL China 2009 in Shanghai and Supplyside West 2009 in Las Vegas- USA.

2.2.3.3 Coordinating with domestic and foreign organization to organize the professional events:

Viet Nam Trade fair of technology in processing, packing and maintaining agricultural products- AP/PS

Safe vegetable and high quality agricultural products market – day.

Vietnam Best food – Foodstuffs with high technology and standard fitting trade fair.

Organizing tens of Professional seminars and advices for farmers.

Organizing “Agriculture golden cup” to respect typical agricultural products and materials.

Organizing national conference of training for human resource in agriculture and forest products processing

2.2.4 Overview of agricultural trade promotion activities of Agritrade

To promote agricultural products and local specialties, Agritrade deploys two main activities:

- Organizing trade promotion program that includes trade fairs, events, conferences, seminars, training, market surveys…

- Establishing display area to display, introduce and sale agricultural products, local specialties and others agricultural materials to Hanoi market and neighboring provinces.

Annual trade promotion programs aim to provide Vietnamese enterprises with opportunities to showcase their products and brands to global importers Agritrade facilitates a platform for both Vietnamese and foreign companies to exchange not only products but also innovative technologies and machinery related to agriculture, livestock breeding, and the processing and preservation of agricultural, forestry, and aquatic products Through these initiatives, Agritrade supports Vietnamese agricultural producers and sellers in accessing both domestic and international markets.

The display area developed in 2006 under Document No 554/BNN- KH on

09/3/2006 signed by Mr Diep Kinh Tan, the Deputy Minister of MARD with the trade promotion purpose as follows:

The display of agricultural products has led to the establishment of valuable trademarks and stable markets, exemplified by items such as Gao Tam Dien Bien, Seng Cu Rice, Da Dui Rice, and Son La mushrooms.

- As one of the stable and long term trade promotion activities.

- Attracting consumers to visit and purchase goods at the exhibition area.

- This area will help producers expand the market for their products.

Agritrade has significantly contributed to the growth of the agricultural trade sector by undertaking key responsibilities outlined by the Ministry of Agriculture and Rural Development (MARD) The Board of Directors has identified three primary objectives: first, to assist local suppliers—including farmers and manufacturers—in promoting their products and connecting with customers in Hanoi and surrounding areas; second, to offer consumers a reliable platform for consulting on the quality and pricing of agricultural goods and local specialties; and third, to facilitate connections between producers and consumers, fostering a fair marketplace for trade and information exchange However, in recent years, Agritrade has faced challenges due to insufficient human resources in both IT and commerce, limiting its activities primarily to the display and sale of agricultural products.

As the middle-man between suppliers and customers, Agritrade not only focus on the consumers at Hanoi market, but they also aim to suppliers at others provinces.

Thus, the main customers of Agritrade are suppliers and consumers.

Based on the frequency of access to customers, I divide customer of Agritrade into two kinds: regular customers and seasonal customers.

Frequent buyers of agricultural products and food at the display area include housewives, househusbands, office workers, and local residents near Agritrade’s office.

The supplier network comprises local enterprises, producers, and farmers from various provinces who showcase their products in designated display areas Additionally, regular suppliers include numerous traders who actively participate in the annual trade fairs organized by Agritrade.

Because of lack promotion campaign, marketing activities, and incentive policies; the location is unfavorable, thus the number of regular customer remains very low.

At Agritrade's trade fairs, visitors primarily consist of buyers and suppliers, with many being new customers from neighboring regions However, after the fair, these customers face challenges in regularly visiting the display area to make purchases Additionally, seasonal customers include businesses that participate in the event on an irregular basis.

Agritrade’s trade fairs To support more this kind of customer, Agritrade should use new approaching method It must be suitable to the current business operation of these agricultural businesses.

Agritrade organizes trade promotion programs through two key departments: the Exhibition and Fair Department, which plans and executes trade fairs and agricultural exhibitions, and the Events and Media Department, responsible for organizing various events, including training and seminars throughout the year These programs primarily target farmers, producers, and traders nationwide.

Agritrade's Director has designated the Business department to manage the display area, which currently prioritizes the sale of agricultural products through a "fixed-income" project Under this arrangement, the area manager enters into a contract with Agritrade, committing to pay a fixed annual income The primary goals of this project are to ensure consistent revenue and streamline the sales process.

- To exploit the product resources of businesses and manufacturers especially sources of the local specialties products to increase number of exhibit categories

Boost your sales and marketing efforts by highlighting key products such as "Gao tam Dien Bien," Quang Hai Fish Sauce, and Thai Nguyen tea from Tan Cuong Hoang Binh Group, JSC Additionally, promote regional specialties like Seng Cu rice from Lao Cai, Da Dui rice from Ha Giang, Cuong Ngan Fish Sauce, Sa Pa Tea, Hoa Binh Shan Tea, and Nha Trang fish sauce Emphasizing these unique offerings can enhance brand visibility and attract a broader customer base.

2.3 Assessing the impact of external environmental factors to E-commerce application at Agritrade

According to the International Monetary Fund (IMF), the world economy will go into the recovery phase after the crisis According to announced on 02/09/2010 of

According to Mr Pascal Lamy, General Director of the WTO, recent statistics indicate that the global economy has rebounded from the crisis, with trade figures from 70 countries—representing 90% of global trade—showing a 25% increase in the second quarter of 2010, particularly driven by Asia's impressive growth of 37.5% This data underscores the ongoing upward trend in global trade.

In 2010, Vietnam's economy showed significant recovery from the global economic crisis, as highlighted in the 8th Session of the Eight National Assembly The GDP growth rate steadily increased throughout the year, reaching 5.83% in the first quarter, 6.4% in the second, 7.14% in the third, and peaking at approximately 7.41% in the fourth quarter According to the General Statistics Office of Vietnam (GSO), the total GDP for the year amounted to 1980 trillion dong (about 104.6 billion USD), marking an increase of over 13 billion USD from 2009 Overall, Vietnam's GDP growth for 2010 was 6.78%, surpassing the Congress-approved plan by 0.3%.

Assessing the impact of internal environmental factors to the E-Commerce applications in trade promotion activities of Agritrade

Agritrade currently employs a total of 45 individuals, including 4 master's degree holders, 34 bachelor's degree holders across various fields, 3 college graduates, and 4 unskilled workers The specific trade promotion tasks will be allocated to the relevant functional departments.

The Board of Directors at Agritrade has designated specific responsibilities to two functional departments: the Exhibition and Events Department and the Media Department The Exhibition and Fair Department comprises eight qualified personnel, including one manager, two deputy managers, and five employees, all with a minimum of three years' experience in organizing both domestic and international exhibitions Their extensive experience and established customer database facilitate the implementation of e-commerce applications for promoting agricultural products Meanwhile, the Events and Media Department consists of five members, including one manager, one deputy manager, and three staff members, with a strong educational background, featuring one master's degree and four bachelor's degrees in general management, journalism, and economics This department focuses on planning and executing training programs, conferences, and professional seminars aimed at equipping farmers, producers, and manufacturers with essential information and skills to enhance product quality, boost competitiveness, scale production, and explore investment opportunities.

The product promotion activities in the display area will be managed by the Business Department, which consists of 11 members, including a Manager, a Deputy Manager, and 9 staff members responsible for various tasks Currently, the display area is primarily focused on sales, leading the department to allocate only two personnel to oversee this area.

The manager is responsible for overseeing product resources, optimizing output, and managing financial statements, while the seller handles the receipt of goods, storage, and direct sales in the exhibition area Additionally, the seller prepares monthly reports detailing product input and output.

To implement E-commerce applications in Agritrade, the main performer is IT and Market Research Department Currently, there are 5 employees in this department:

The team consists of one Manager, one Deputy Manager overseeing IT, and three employees with specialized roles, all equipped with relevant professional training The qualifications include one Master’s in Information Technology, two Bachelor's degrees in IT, and two Bachelor's degrees in economics and management For effective implementation of E-commerce applications, the IT and Market Research Department must collaborate closely with other functional departments, including the Exhibition and Fair Department, Events and Media Department, and Business Development.

Department) to collect database, promote and improve the effectiveness of E- commerce application.

Currently, the IT and Market Research Department lacks sufficient staff to effectively develop and manage the technical infrastructure for E-commerce applications To enhance operational efficiency, Agritrade should consider hiring additional skilled employees.

Agritrade is a business department under the Ministry of Agriculture and Rural Development, but implement most of trade promotion activities of Vietnam

Agritrade recognizes the significance of E-commerce applications in promoting agricultural products, making it a crucial focus Last year, the Ministry of Agriculture and Rural Development (MARD) acknowledged the vital role of E-commerce in enhancing trade promotion within the agricultural sector, leading to the establishment of favorable policies to support the development and implementation of E-commerce initiatives.

The Board of Directors at Agritrade is dedicated to advancing and implementing an E-commerce application, ensuring optimal conditions for its development Consequently, the Director of Agritrade is committed to providing substantial financial resources to support the project's execution.

Agritrade has successfully equipped all departments and employees with comprehensive computer systems, ensuring optimal functionality These systems are consistently upgraded, maintained, and managed by specialized personnel Additionally, Agritrade benefits from a robust LAN system and a building-wide Wi-Fi network, supported by reliable internet services from VNPT and Viettel.

The IT and Market Research Department at Agritrade oversees the management and utilization of computer and network systems Currently, this department is staffed by just two highly trained officers with strong IT expertise These professionals bring valuable experience in various technology fields to their roles, ensuring effective operations within the organization.

- Programming Languages: Java, JSP, Servlet, Struts, JSF, C #, VB.NET,ASP.NET, ASP, C / C + +, Visual Basic, JavaScript, PL / SQL, Oracle, XML,Python.

Analysis the results of survey and discussions

- Databases: Oracle, SQL Server, DB2, MySQL, Postgre SQL.

- Network protocols: SNMP, TCP / IP, NAT, IP Sec, VPN.

These are favorable conditions for the deployment of the system and website designed for the online sale model of Agritrade 2.5 Analysis the results of survey and discussions

To evaluate the effectiveness of E-commerce applications in trade promotion activities at Agritrade, I conducted a survey among employees and customers The survey aimed to assess the current IT infrastructure of Agritrade and its capacity to support E-commerce initiatives, while also examining existing trade promotion activities and their impact on the development of Vietnam's agriculture sector Additionally, I gathered insights from both consumers and providers regarding their agricultural purchasing methods and the necessity of integrating E-commerce into trade promotion efforts The findings of the survey reveal critical insights into these areas.

Subjects Issue Notes (IN) Receive Note (RN) Rate RN/IN

The questionnaire includes two parts: part 1 (IT infrastructure and IT application capacity) and part 2 (IT application to agricultural trade promotion at Agritrade).

Table 2.6: Summary of survey results (Part 1):

Personal computer equipped at work

Internet connection of these computers

LAN network of Agritrade equipped with firewall

The basic IT applications at Agritrade

Rate of using email at work

The main tasks of Agritrade’s website

Provide information of trade promotion 37 82.22

Rate of website/portal updating

IT support to employees during work

The attention of the leadership to IT application

Do not care or care very little 0 0

Agritrade has ensured that all functional employees are equipped with high-quality computers, with nearly all systems connected to the ADSL Internet, the most common connection method in Vietnam However, due to network security concerns, some computers in the Finance Department remain offline The data indicates that Agritrade has effectively integrated IT into its operations, evidenced by a high email usage rate of 77.78%, highlighting the company's commitment to leveraging technology in the workplace.

Despite the uneven IT proficiency among Agritrade's employees, many of whom lack basic training, their actual IT usage is commendable and surpasses that of several state agencies This can be attributed to several factors: the relatively young average age of employees, most of whom were born after 1975, enabling them to quickly adapt to IT applications; the job demands for seeking new customers and maintaining communication with remote clients; and the prompt technical support provided by the IT and Market Research Department, which assists employees during their work and through requested training sessions.

The survey results indicate a strong commitment from Agritrade's leadership towards IT applications, with 23 out of 45 employees noting the Board of Directors' active interest and encouragement for IT integration in the workplace The Director has tasked the IT and Market Research Departments with providing ongoing support and training to enhance IT application skills among employees This focus on technology, including factors like computer accessibility, internet usage, email functionality, and security, demonstrates Agritrade's readiness to embark on e-commerce initiatives To further advance its e-commerce capabilities, Agritrade should consider investing in upgrades to its computer systems, internet services, and server infrastructure to effectively launch an e-commerce portal.

Table 2.7: Summary of survey results (Part 2):

Current agricultural trade promotion activities at Agritrade

Trade fairs and professional events 45 100.00

Ability to achieve the target set for trade promotion activities?

Should Agritrade applied E-commerce in agricultural trade promotion

If applying IT and E-commerce, what model Agritrade should apply?

The important factors when applying E-commerce?

Marketing to introduce new forms 30 66.67

To upgrade the technical infrastructure 37 82.22

Marketing to introduce new forms 8 17.78

To upgrade the technical infrastructure 13 28.89

According to Table 2.8, all Agritrade employees are aware of the key activities and functions essential for trade promotion However, they acknowledge that the likelihood of achieving trade promotion goals through traditional methods is relatively low, with 35 employees, representing 77.78%, expressing concerns about the effectiveness of these conventional approaches.

Figure 2.12: Ability to achieve the target set for trade promotion activities of traditional methods.

Accordingly, 75.56% of Agritrade’s employees also propose to deploy e-commerce applications in the trade promotion of agricultural products.

Figure 2.13: Evaluation of Agritrade’s employees on whether to apply Ecommerce in agricultural trade promotion.

A recent survey revealed that 60% of Agritrade employees believe the company should establish a dedicated E-commerce website They argue that the current site should prioritize agricultural information and trade promotion, while the new platform should be more professional and interactive To successfully implement E-commerce, employees identified four key areas of focus: personnel preparation, developing a marketing plan for the new model, website design, and upgrading technical infrastructure Notably, personnel preparation was deemed the most crucial aspect, with 42.22% agreement, followed by technical infrastructure upgrades at over 28.89%.

Figure 2.14: The E-commerce model Figure2.15:Themostimportant to apply factor when apply E-commerce

Table 2.8: Evaluation of Agritrade’s employees about necessary level of contents of E-commerce application

The necessary level of electronic payment

The necessary level online of support

The necessary level of network security

The necessary level of organizing training course for users

When implementing an E-commerce model, four key areas should be prioritized: electronic payment, online support, network security, and user training A survey of Agritrade employees highlighted the significance of these components, with all receiving the highest score of 5, and average ratings exceeding 4 points The ranked order of importance based on average scores is as follows: online support (4.58), network security (4.56), user training (4.38), and electronic payment (4.16) This ranking serves as a crucial guideline for Agritrade's E-commerce deployment While simultaneous implementation may not be feasible, Agritrade should focus on enhancing online support first, followed by strengthening security measures, gradually rolling out user training—especially for those in local provinces—and ultimately refining the electronic payment system.

The questionnaire is structured into two distinct sections: the first part targets private consumers who purchase agricultural products for their households, while the second part focuses on agricultural suppliers from Hanoi and other provinces who participate in trade fairs organized by Agritrade.

Table 2.9: Summary of survey results (Consumers)

Current method of buying agricultural products

The form of selling agricultural product via internet that consumer can be use?

Payment method that customer use in E-commerce.

Understanding of customers about Agritrade’s tasks?

Should Agritrade apply IT in trade promotion activities?

Changing buying habits is crucial for individual customers purchasing agricultural products for daily life A survey of housewives, office workers, and students revealed that 100% of respondents still prefer traditional methods, shopping directly at markets and supermarkets However, 40% of consumers, primarily office workers, have started buying agricultural products online The rise of the Internet has led customers to suggest that suppliers adopt new selling models, such as e-commerce websites and company websites, which received high approval ratings of 86.67% and 80.00%, respectively Customers view these models as feasible alternatives, although concerns about payment methods remain.

53.33% of the customers still choose to pay in cash.

Survey results indicate that Agritrade's marketing activities significantly enhance consumer awareness of its trade promotion programs A substantial majority of consumers express a desire for Agritrade to integrate IT and E-commerce solutions, facilitating easier access to agricultural products and updated information Notably, 80% of consumers support the implementation of E-commerce within Agritrade.

Figure 2.16: Evaluation of Agritrade’s consumers on whether to applyEcommerce in agricultural trade promotion.

About suppliers who also selling products on E-commerce website of Agritrade, survey results showed the positive signal for deployment E-commerce model in Agritrade in the near future.

Table 2.10: Summary of survey results (Suppliers)

Current cooperation between suppliers and Agritrade

Consigning their products at the display area

Hiring permanent space at Agritrade to display and sale 2 15.38

The willing of suppliers to provide agricultural product information

The factors should be focused on If Agritrade applies E-commerce model.

Marketing to introduce new forms 5 38.46

To upgrade the technical infrastructure 11 84.62

Many suppliers engage with Agritrade primarily during seasonal trade fairs, which significantly boost the promotion and sales of agricultural products However, the brief duration of these events hampers their ability to sustain customer relationships and market presence afterward While some companies have opted to display their products in Agritrade's exhibition area, they experience limited sales despite the promotional benefits Additionally, few businesses are interested in renting permanent exhibition space at Agritrade's office According to Table 2.12, suppliers rate the effectiveness of current advertising and trade promotion methods for agricultural products and local specialties as low, with an average score of only 3.54.

Figure 2.17: Evaluation willing level of Agritrade’s consumers to participate in E-commerce website.

The supplier expressed enthusiasm for the E-commerce application program offered by Agritrade, recognizing its potential to overcome current limitations This eagerness is evident in the 84.62% of companies that are prepared to share their product information and actively engage with the platform.

The evaluation results indicate that suppliers rated the necessary level of E-commerce application in Agritrade at an average of 4.31 points Suppliers emphasized five key elements for Agritrade to consider in implementing an E-commerce model: personnel preparation, marketing campaigns for new formats, enhancements to payment methods, upgrades to technical infrastructure, and improvements in the delivery process.

Table 2.11: Evaluation of Agritrade’s customers (consumers and suppliers) about necessary level of E-commerce application

The satisfaction level of consumer when purchase agricultural products online

The effectiveness of current cooperation methods between

Agritrade and suppliers in promoting agricultural product?

Survey results indicate that customers have accurately identified key issues within E-commerce applications, prompting Agritrade to refine its strategic direction Both consumers and suppliers rated electronic payment systems low, with scores of 3.80 and 3.92, respectively, reflecting a lack of confidence in the safety of these payment methods despite their recognized effectiveness This feedback highlights the necessity for Agritrade to develop a targeted strategy and enhance its online payment processes.

A recent survey reveals that consumer trust in Agritrade's product information is notably high, with an average rating of 4.33 points This strong reliability serves as a significant advantage for Agritrade, as consumer trust is a critical factor in transaction success Consequently, this heightened confidence is expected to lead to an increase in online transactions on Agritrade's eCommerce platform.

CONCLUSIONS AND THE PROPOSAL SOLUTION OF E-COMMERCE

Orientation and perspective of development of Agritrade in the future

In response to the need for comprehensive reform in agricultural trade promotion, particularly during international economic integration, Agritrade is enhancing IT applications to support enterprises, cooperatives, farms, and farmers through electronic media, publications, and e-commerce Additionally, Agritrade is actively promoting the image of Vietnamese agriculture, its enterprises, and key export products.

Agritrade will be the leading trade promotion organizer and active supporters for Vietnam Agricultural manufacturers and exporters.

Agritrade applies E-commerce in all activities in order to serve customers, who are companies, production units and consumers better and more effective.

Agritrade is set to launch an E-commerce portal designed to offer a comprehensive schedule of annual trade fairs, exhibitions, training sessions, and cultural events This platform will enable customers to easily find essential information, place service orders, and provide direct feedback to Agritrade, enhancing the overall user experience.

E-commerce portals serve a dual purpose: they not only provide agricultural information but also create a vital trading platform for manufacturers and agricultural enterprises to connect with other businesses and consumers Through these platforms, agricultural products and local specialties can secure a stable market presence in Hanoi and beyond.

Agritrade is building a comprehensive database focused on agricultural production, products, and services to enhance trade promotion efforts This resource enables organizations, businesses, and individuals to access vital information, facilitating the development of effective strategies, action plans, and business models Additionally, Agritrade has successfully launched an online trade promotion system for agricultural products, local specialties, handicrafts, and fine art, allowing for direct engagement with customers through its website.

3.2.2 Agritrade’s views on the E-commerce application

The Board of Directors of Agritrade emphasizes the importance of integrating E-commerce into trade promotion activities, highlighting its alignment with existing infrastructure and technology By implementing an E-commerce model for agricultural products, a consistent trading platform can be established, facilitating direct interactions between suppliers and consumers This approach not only enhances market access for local specialties but also ensures a stable demand for agricultural products in Hanoi and other major cities.

Proposal solutions of deploying E-commerce application in Agritrade

3.3.1 Group of Human Resource solutions

The IT and Market Research Department at Agritrade is primarily responsible for implementing E-commerce, but currently lacks sufficient skilled personnel To effectively prepare for the deployment of the E-commerce model, Agritrade must promptly enhance its workforce by following essential steps to recruit and train qualified staff.

- To evaluate the requirements of personnel, construct new job descriptions and appropriate treatment policy for E-commerce application.

- To evaluate the ability of adaption to the new situation of current staffs.

To enhance the quality and quantity of human resources necessary for implementing the Ecommerce model, it is essential to create effective plans for recruiting and training additional personnel This includes both self-training initiatives and utilizing external training services to meet the growing demands of the industry.

- Having knowledge and experience in selling agricultural products, foodstuff and organizing trade promotion program.

- Having knowledge and experience in E-commerce and online sales.

- Having the knowledge and skills in sales and marketing…

3.3.2 Solutions related to infrastructure and technology

3.3.2.1 Solutions of Infrastructure and information systems

Agritrade's current infrastructure, which includes databases, servers, and hosting, is primarily designed to support the company's website, focusing on updating information, event photos, and short clips However, with the planned deployment of an E-commerce platform, Agritrade must enhance its infrastructure to accommodate additional features that enable customers to access information in various formats Therefore, it is essential for Agritrade to reassess its infrastructure capabilities and forecast demand to make informed investments in its IT systems.

To enhance its operations, Agritrade must not only invest in infrastructure but also redesign its current information system to align with new business processes Additionally, the company aims to develop external e-commerce information systems that will support its online sales and ensure compatibility with the internal e-commerce systems already in use.

3.3.2.2 Solutions of designing a website for sales

Agritrade's website currently serves as a platform for publishing news, product details, agricultural insights, schedules, and information on trade promotion programs To effectively implement an E-commerce model, Agritrade needs to create a dedicated website with specific functionalities tailored for online trading.

- Introducing general information about trade promotion activities of Agritrade and other necessary documents.

- Virtual store of users (sellers)

- Managing customer’s account and information.

- Managing order forms (including the process from ordering to delivery, tracking warranty).

- Consulting and contract negotiations online (provided by customers through their account system).

The page interface should be designed for optimal ease of use, ensuring consistency with user needs and minimizing the steps required to perform functions The IT team at Agritrade must identify the essential functions needed for the installation of each specific product.

Agritrade will create a comprehensive design project, choose the appropriate database, and implement essential software functionalities for the website These initiatives aim to ensure smooth operation, fast access speeds, and enhanced user safety and security.

Developing an effective E-commerce model necessitates robust electronic payment systems, making network security and data protection paramount Agritrade must establish strong security measures and leverage advanced technology to safeguard consumer account information and ensure a secure online shopping experience.

Agritrade should assist customers in safeguarding their private accounts and sensitive information, thereby minimizing transaction risks With Agritrade's support, customers can feel confident in the security of the trading system offered Implementing advanced technologies will further enhance this security, ensuring a safer trading environment for all users.

Implementing virtual keyboard technology enhances website security by enabling customers to enter sensitive information, such as account details and passwords, safely and conveniently This innovative feature minimizes the risk of keylogging and unauthorized access, ensuring a secure online experience for users.

Utilize digital matrix technology to authenticate users during payments or other actions Each secure transaction necessitates that customers input a randomly generated number from the matrix, which is provided to them in advance.

- Use of electronic signature technology for transactions, for the entering, showing and querying the electronic receipts.

To ensure robust security for Agritrade's website, implementing a firewall is essential for monitoring and protecting the command processing system This security solution combines hardware and software to create a barrier between Agritrade's internet resources and external threats Firewalls come in two forms: software installed on the internet server for small e-commerce sites and independent filtering systems that safeguard larger projects Key components of a firewall include ports, which facilitate data flow between networks, and valves, which prevent data packets from being misrouted For optimal protection, Agritrade can deploy two firewalls from different providers in parallel, enhancing security and mitigating the weaknesses of each system.

Utilizing a secure tunnel with individually configured access channels for partners enhances business communication by employing encrypted Internet protocol packets and creating a virtual private network (MRA) This technology not only provides a high level of security to prevent unauthorized access and hacking but also facilitates cost-effective communication among staff, regardless of geographical distance While the initial setup cost for establishing the tunnel may be significant, the ongoing operational costs are minimal, making it an efficient solution for businesses.

3.3.3 Solutions related to business processes

3.3.3.1 Solution and processing to orders

The order placement and receipt process is a crucial initial stage in online sales, where customers select products and submit their orders to sellers To streamline this process and minimize errors, Agritrade should implement an automated ordering system that includes a comprehensive and user-friendly list of products, along with clear terms and policies This system will not only facilitate customer decision-making but also provide supportive features at every step of the ordering process, ensuring a diverse and efficient experience while maintaining the current order form.

- Complete the processing of orders

Accurate fulfillment of customer orders is essential for building trust and securing additional contracts To achieve this, it is vital to optimize order management processes, which helps minimize costs for both sellers and buyers while effectively monitoring contract progress and addressing any emerging issues efficiently.