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The trend of e-commerce development differs between slow-growing regions and developed regions.

Hanoi and Ho Chi Minh City continue to lead Vietnam e-business index 2021 (EBI 2021), according to the latest report released on April 20 by the Vietnam E-commerce Association (VECOM) in Hanoi.

Source: the VECOM. Chart: Phi Nhat

E-commerce gap

Ho Chi Minh City leads the e-commerce index with a total score of 67.6 points, followed by Hanoi with a total score of 55.7 points, the central city of Danang with 19.04 points, the southern province of Binh Duong with 14.76 points and the southern province of Dong Nai with 11.14 points.

The e-commerce gap between two biggest cities (Hanoi and HCM City) and other provinces remained unchanged. The northern port city of Haiphong was relagated from the third position to the sixth in the e-commerce index this year.

The Vietnam E-business Index (EBI) in 2021 was based on three key criteria: human resources and infrastructure in information technology, e-commerce transactions between enterprises and consumers, and among businesses.

According to the VECOM, the government-to-business transactions criteria was removed from the EBI because the e-government gap between localities is narrowed. Since 2020, e-government has strongly developed in provinces/cities, many online public services related to e-commerce have been launched at local level.

The report on EBI from 2016 up to now showed that there is a huge disparity in the e-commerce sector between Hanoi, HCM City and other localities. During this period, Hanoi and HCM City have continuously accounted for 70% of the national e-commerce scale.

In 2019, the VECOM adopted a fast and sustainable e-commerce development strategy with the desire to help localities narrow the gap and create a larger market for online businesses.

“In 2020, many localities had taken positive moves to gradually narrow the gap and we predict the 2021-25 period is time of the rapid e-commerce development in the provinces and cities,” said Nguyen Binh Minh from the VECOM.

A local shopper is finding products on an e-commerce site. Photo: Phuong Thu

Steady e-commerce growth until 2025

According to a survey of about 5,000 VECOM member, in 2020, the country’s e-commerce increased by about 15%, reaching a turnover of about US$13.2 billion. The value is predicted to continue growing steadily in 2021 and until 2025.

“The Covid-19 pandemic has exerted a great and comprehensive impact on the economy – society, including e-commerce,” VECOM Chairman Nguyen Thanh Hung said. “Overcoming difficulties, e-commerce still stands firm, even has a breakthrough in some areas when Covid-19 has changed consumption and shopping habits.”

Businesses have also become more active in information technology application, changing organizational structure and business activities, accelerating digital transformation, training human resources, and making good use of online platforms for internal operations and connecting with customers, Hung said.

Being of the same mind, Trinh Khac Toan, a representative from Amazon Global Selling Vietnam also shared some information such as the proportion of e-commerce is increasing strongly because the growth of online retail sales in the world increased by 22% in the past five years, which is projected to be above 20% in 2021.

In fact, more and more Vietnamese businesses are opening stores on the Amazon e-commerce platform to find distributors and connect with hundreds of millions of consumers around the world.

Hanoi (VNA) – The Australian Embassy in Hanoi and the United Nations Children’s Fund (UNICEF) have announced a 13.5 million AUD package to support the introduction and delivery of COVID-19 vaccines doses in Vietnam.

The Australia-UNICEF partnership is expected to provide a unique and holistic package that will assist Vietnam across a range of areas vital to the successful delivery of a mass immunisation programme against COVID-19 , according to a UNICEF press release published on April 19.

“Our support will help Vietnam purchase cold chain equipment to store and transport vaccine doses to where they are needed around the country, provide training courses and materials to ensure Vietnam’s health workers and officials are ready, and assist with the development of immunisation plans in Vietnam’s remote provinces to ensure equitable and uniform vaccine coverage”, said Australian Ambassador to Vietnam Robyn Mudie.

“Introducing a new vaccine especially for COVID-19 is a colossal task for any government with many important steps involved. Thanks to the partnership with the Government of Australia, UNICEF is committed to work with the Ministry of Health and other partners to support the introduction and rollout of COVID-19 vaccines in Vietnam,” said Rana Flowers, UNICEF Representative in Vietnam.

The programme will support Vietnam to reach the prioritised 20 percent of population by the end of 2022 and set the foundation necessary for immunising the remainder of the population as vaccines are rolled out nationwide.

Funding for the programme is drawn from Australia’s 523.2 million AUD Regional Vaccine Access and Health Security Initiative, as well as from the nation’s bilateral development cooperation programme with Vietnam.

In total, Australia has committed 40 million AUD over three years to support Vietnam’s vaccine procurement and delivery efforts./.

VNA

Vietnam and China are neighbors working together in containing Covid-19.

Vietnamese President Nguyen Xuan Phuc has said that Vietnam wishes to enhance cooperation with China that is comprehensive, efective and of mutual interest.

Vietnam’s President Nguyen Xuan Phuc at the Boao Forum. Photo: VNExpress

The principle is aimed to keep peaceful and stable environment for the further development of the bilateral relations, Phuc said at the Boao Forum for Asia held both online and offline.

He said the two countries are close neighbors and having worked together in containing Covid-19 for economic growth that makes both to be bright spots of the region and the world.

Addressing the four-day event themed “A World in Change: Join Hands to Strengthen Global Governance and Advance Belt and Road Initiative (BRI) Cooperation” that concluded on April 21, Phuc called for international solidarity in combating the pandemic.

He listed issues of central attention namely promoting cooperation in pandemic control, ensuring vaccine access at reasonable cost, guaranteeing macroeconomic stability, facilitating trade and investment, securing supply chains, boosting production and creating jobs, mobilizing resources for sustainable and inclusive economic development, and building synchronous and developing human resources for digital transformation.

The conference covers several topics including carbon neutrality, climate change and digital economy.

Established in 2001 by 29 member countries, the Boao Forum for Asia is an international organization held annually in Boao, China’s Hainan province to promote economic integration in Asia.

Lotteria, a fast-food franchise brand, will open 28 fast food stores in Vietnam this year.

Lotteria, a subsidiary of South Korea’s Lotte Group, will expand its investment in Vietnam through opening more 28 fast-food stores and building a new food material factory in Long Hau Industrial Park in the southern province of Long An.

Source: Statista, April 2020. Chart: Phi Nhat

A representative from Lotteria Vietnam confirmed this information with Hanoitimes and denied a recent report that it will close its fast-food chain in the country. He also said the report of the Koreatimes resulted from a misunderstanding.

According to the South Korean newspaper, the hamburger chains overseas are being shut down due to the Covid-19 pandemic. Lotteria Indonesia, which operates more than 20 stores, is in the process of closing down due to its losses, mainly from impacts of the Covid-19 pandemic.

Lotteria franchises in Vietnam have all stopped operations, the Koreatimes wrote, and its headquarters in Seoul is reviewing the possibility of closing down the business within 2021. It didn’t make any profit last year.

The chain now has more than 260 stores including 100 under the franchise model across Vietnam since 1998.

The Vietnamese market is considered as potential market for the development of the food & beverage industry. With the desire to develop sustainably and consolidate its leading position in this vibrant market, Lotteria started franchising to co-develop with partners nationwide from October 2014.

As of April 2020, Lotteria was the leading fast food chain in Vietnam with 151 stores, followed by Jollibee with 115, according to Statista, a German market research firm.