Assignment 1:

1) Vietnam Airlines would like to explore their competitive advantages and disadvantages
over international routes

I. Market Overview
● According to Aviation Report 2020, the growth rate of Vietnam's aviation industry
(AAGR) is the highest in Asia - Pacific region with an average increase of 14% from
2018-2023 compared to 5.5% of the whole region.
● According to the International Trade Administration, the Maintenance, Repair, and
Overhaul( MRO) market in Vietnam was valued at $542 million in 2018, while the
MRO market in Southeast Asia was worth $5.8 billion. This obviously demonstrates
that the Vietnamese market is still in its early stages of development. Vietnamese
fleets have 190 aircraft as of 2019. Vietnam is predicted to have approximately 400
aircraft by 2035, with a fleet growth rate of 13.3 percent each year.

● With a large domestic network and high frequency, VNA is the largest scale company
and has the largest airline transportation share in the Vietnam market( VCBS, 2014).
VNA serves the medium to high-end class segments, while Jetstar Pacific Airlines
serves the low-cost segment.
 II. Gathering data:
Exploratory research method (Using secondary data to find about the key players,
competitors, international routes in order to compare Vietnam Airlines with other players /
Using primary data by In-depth interview: ask the industry’s professionals, KOLs and lead-
users, about their knowledgeable opinions about the current and future brand’s position in
international routes)
a) Secondary data (Exploratory research):
- Evaluate the available internal and external database about the current key
players, competitors, international routes ( authentic researches, surveys,
online library, etc.).
- Case study: observe competitors’ situations and compare

b) Primary Data:
Research method 1: Exploratory research - Qualitative data
Research objectives: to determine customers’ perception of the brand and seeking
improvements.
Research instrument: In-depth Interviews
Interviewing a large group of the industry’s professionals, KOLs and lead-users, about their
knowledgeable opinions, (e.g. predictions about the current and future brand’s position in
international routes, their detailed comments on the brands’ shortcomings in multiple aspects
and suggesting improvement) to gain more competitive advantage on the global market.
Sample frame and size:
The VIP customers, professional experts in the airline industry, KOLs and lead- users, etc.
with the sample size of 10-25 people.
Sample method: Purposive sampling
VIP customers: age ranged from 20-55 (10 samples)
Samples taken from experts, KOLs and lead users (15 samples)

2) Transportation/ delivery services booking apps would like to measure the market potential
(size, value, gr), their business performance (revenue, share, awareness, users/ retention,
satisfaction, brand image/ perception,…) and competition (direct/indirect).

I. Market Potential
- According to a report of the Ministry of Information and Communications Ministry of
Information and Communications, estimated revenue of the postal sector in the first 6
months of 2021 is more than VND 20,000 billion (up 23% over the same period). The
volume of parcels reached over 590 million, an increase of 30% over the same period
in 2020. These figures show that the postal and express delivery industries are doing
very well.
- Vietnam's delivery market has grown strongly thanks to e-commerce. The Vietnam E-
commerce Association (VECOM) announced the Vietnam E-commerce Index 2020
report with a growth rate of about 15%, reaching a scale of about 13.2 billion USD.
Meanwhile, the volume of parcels sent through the delivery service has increased by
47% in 2020 with the growth rate of parcels of the leading delivery companies
ranging from 30 to 60%.
- Vietnam's delivery services market is worth USD 0.71 billion in 2021 and is expected
to reach USD 4.88 billion by 2030, achieving a compound annual growth rate of
24.1% from 2022. to 2030.
II. Key players:
- According to Valoma.vn, in Hanoi, Viettel Post accounts for 52% of the market share,
the highest among delivery companies, Vietnam Post accounts for 20% of the market
share, the remaining 30% is divided by Giao Hang Nhanh (10%), Giao Hang Tiet
Kiem (9 %), EMS (4%) and other small delivery businesses (5%). And in Ho Chi
Minh City, the market share is divided among small delivery companies, when these
businesses account for 35% of the market share. Next, Viettel Post is still the unit
 with the highest market share with 28%, Vietnam Post (15%), EMS (10%), Giao
Hang Tiet Kiem (7%) and Giao Hang Nhanh (5%).
- In 2021, the prominent enterprises to mention are Viettel Post, Vietnam Post, Giao
Hang Nhanh and Giao Hang Tiet Kiem, accounting for more than 65% of the market
share.

III. Research objectives and methods

Research objectives:
- To determine the revenue, volume, and growth rate of the Vietnamese
transportation/delivery service booking apps market
- To determine the company's revenue, market share, brand awareness, customers ’
satisfaction, and brand perception.
- To identify key competitors in the Vietnamese market for transportation/delivery
services booking.
a/ Secondary data ( Exploratory research - Quantitative data):
- Evaluate the market potential and competition (size, value, growth rate) using
external database (official statistics & public sources and/or syndicated data)

- Evaluate the business performance (revenue, market share, awareness, user retention
and satisfaction, brand image) by analyzing the available internal database (annual
operating/ financial report, sales records, purchase requisitions, and customer
feedbacks/ complaints)

b/ Primary data
- Research method: Exploratory research - Qualitative data
- Research instrument:
Focus group interview & Observation (Direct, Overt, Structured, Invented)
- Purpose:
An experienced moderator will interview small representative customer groups about their
personal experiences on the company’s transportation/ delivery service booking apps and
opponents’ + Observe the customer journey when using the booking app in order to clarify
the secondary data on business performance and gain more insights into the user retention,
satisfaction and perception of the company compared to the major competitors in the field.
 - Sample frame and size:
The present and potential customers in the target segments (premium, standard, low income)
of the transportation/ delivery booking services with the sample size of 6-8 people each group
(in total 6 groups: Each target segment will be interviewed twice to ensure the information
quality).
- Time duration: 2 hour per group
- Sample method: Purposive sampling
The chosen samples will be representative of the target segments’ purchasing ability who
have fundamental understanding of transportation and delivery apps and have experienced
different booking apps available in the market.

3/ Understand the customers’ behavior shifting towards e-commerce among 13-45 y.o.
customers.
I. Market overview
1. Growth rate
- According to a report by Vietnam e-Commerce and Digital Economy Agency
(governed by Ministry of Industry and Trade), with 53% of the population shopping
online, the e-commerce market in Vietnam grew by 18% in 2020, reaching 11.8
billion USD, which accounted for 5.5% of total retail sales of consumer goods and
services.
- According to the National E-Commerce Development Master Plan for the period
2021 – 2025, 55% of the population will have participated in online shopping by 2025
with the average value of online purchases of goods and services reaching 600 USD /
person / year. Revenue of the B2C e-commerce model is forecasted to increase by
25% / year, reaching 35 billion USD, accounting for 10% of total retail sales of goods
and services.
- Compared to other countries in Southeast Asia, Vietnam is among the fastest growing
retail markets. Since 2015, the growth rates of the three largest digital economies in
the region have averaged around 35 - 36%. In particular, Vietnam ranked 2nd and
 reached 36%, following Indonesia with 41%.

- Research by Nielsen shows that, since the outbreak of the Covid-19 pandemic, the
demand for shopping on e-commerce platforms has increased sharply. Last year, 70%
of Vietnamese people had access to the Internet, and 53% of e-wallet users made
payments when buying online, an increase of 28% compared to 2019.
- According to Amazon Vietnam, Vietnamese sellers will exceed 1 million USD in
sales in 2020 on Amazon, a tripling from 2019.
Annual gross merchandise volume (GMV) of the internet economy in 2021 is divided by
sector. The first place is e-commerce at 13 billion USD. Following online media at 3.9,
transport and food at 2.4 billion USD. Finally, online travel has 1.4 billion USD.

2. Segment
- Five categories are considered by ecommerce DB. Electronics & Media is the largest
segment in Vietnam and accounts for 28% of the eCommerce revenue in Vietnam.
This is followed by Fashion with 22%, Food & Personal Care with 18%, Furniture &
Appliances with 17% and Toys, Hobby & DIY with the remaining 15%.
- Ages
 3. Key players
- According to the report of the Top e-commerce businesses in Vietnam, updated by
iPrice insights on March 3, 2020, Shopee Vietnam continues to lead in the whole year
of 2019 in terms of website traffic. , reaching an average of 38 million turns/month.
Following are Thegioididong with 28 million visits/month, Sendo with 27.2 million
visits/month, Lazada with 27 million visits/month and Tiki with 24.5 million
visits/month.
II. Research and methods
1. Research Objectives
● To determine what 13-45 years old customers see as the benefits of using ecommerce.
● To determine what 13-45 years old customers see as the obstacles of using
ecommerce.
● To identify what type of incentives would encourage 13-45 years old customers using
ecommerce.
● To distinguish types of ecommerce that are most likely to attract 13-45 years old
customers.
● To identify how the information defined from the previous statements varies
according to the characteristics of the customer, including age, gender, class standing,
financial statement, domestic versus international customer, and geographical region.

III. Research methods

 a. Secondary data (Exploratory research): use the available information from the
internal database and external sources (Social media, Search engines, Articles,…) to
understand the basic concepts and general signals of the phenomenon.
b. Primary data:
Research method 1: Exploratory research - Qualitative data
● Research instrument: Focus Group Interview
Interview a representative group of customers about their current buying patterns and
thoughts about their shopping tendency (e.g frequency rate of using ecommerce, preference
about ecommerce over other retail stores, Influences on their shopping habits, the relationship
between their demographic and purchasing behavior, comments on the underlying reasons of
the shift, etc. ) to gain more in-depth insights of the shifting behavior and better
understanding of the customer determination in purchasing ( the customer “black box”).
● Sample frame and size:
The present and potential customers aged 13-45 in the target market, divided into 4 main
groups
Group1: (13-18); Group 2 ( 19-25); Group 3 ( 26-33); Group 4 ( 33-45), with a sample size of
16-18 customers ( 4-5 customers/ group).
● Sample method: Purposive sampling
The customers chosen will be representative of the target segments, have purchase abilities
and the basic knowledge about e-commerce and a medium frequency of purchasing online
( at least once a week), with the age spread evenly from 13 to 45 years old.

Research method 2: Exploratory research - Qualitative data

● Research instrument: Experience Surveys
Interview the lead-users, (KOLs, Fashion Tiktokers, ecommerce models, etc.) about their
current buying patterns and personal experience in using ecommerce (e.g frequency rate of
using ecommerce, preference about ecommerce over other retail stores, Influences on their
shopping habits, the relationship between their demographic and purchasing behavior,
comments on the underlying reasons of the shift, etc. ) to gain more in-depth insights of the
shifting behavior and better understanding of the customer determination in purchasing ( the
customer “black box”).
● Sample frame and size:
The present and potential customers aged 13-45 in the target market, divided into 4 main
groups
Group1: (13-18); Group 2 ( 19-25); Group 3 ( 26-33); Group 4 ( 33-45), with a sample size of
16-18 customers ( 4-5 customer/ group).
● Sample method: Purposive sampling
The customers chosen will be representative of the target segments, have a remarkable
purchase abilities and an in depth knowledge about e-commerce and high level of frequency
in purchasing online
( at least twice a week), with the age spread evenly from 13 to 45 years old.

Research method 3: Descriptive research - Quantitative data

● Research instrument: Longitudinal study - Brand-switching studies
Examine the extent to which consumers are switching from traditional retailers to e-
commerce platforms over the time.
● Sample frame and size:
Continuous panels of present and potential customers aged 13-45 who use mobiles and are
exposed to e-commerce with the size of 500 customers.
● Sample method: Purposive sampling
The members of the panels will be intentionally selected to be representative of the target
market segments and agree to provide information or answer questions on the same topics at
regular intervals.

4/ Go2Joy hourly hotel booking app would like to evaluate their current brand performance
and maximise it with better marketing programs.
Case 4: GOOD
Thiếu mkt performance between G2J and competitors, and whether it is effective
Search for all the current mkt program working
Sampling method

I. Market overview
● Size
According to data in the Statista report, the market size of the global online travel
agent sector 2020 reached 432.14 billion U.S. dollars. In 2021, this number will increase to
561.36 billion U.S. dollars. In Vietnam, the online travel market size measured by gross
merchandise value in 2020 reached 3 billion U.S. dollars, equal to Indonesia in the Asia
Pacific region, behind Thailand (4 billion U.S. dollars). The report shows that the value of e-
commerce spending by internet users is highest in the field of Travel, mobility, and
accommodation, reaching 3,180 million U.S. dollars in 2020.
● Volume
As a result of Covid-19, shown in the report from Statista, the revenue of online
purchases in tourism and Travel in Vietnam 2020 was 578.24 million U.S. dollars, down
more than 773 million U.S. dollars compared to the previous year's revenue.
● Growth rate
According to Google and Temasek, the growth of Vietnam’s online travel market
size in 2018 reached US$3.5 billion, a year-on-year rise of 15 percent, and is
expected to be $9 billion by 2025.
Vietnam report.
Vietnam travel market

II. Business performance

Go2Joy was founded in 2016, it is a mobile app that helps with booking hotels in non-
standard increments like a few hours. It has attracted more than 200,000 users and more than
1,000 hotel partners.

● Awareness
After nearly 4 years of presence in the market, Go2Joy has attracted more than
500,000 users, achieved a certain position in the OTA (Online Travel Agent) industry and
quickly dominated the hourly booking market via the application.
● Brand message
With the message "Tận hưởng không giới hạn", Go2Joy wants to bring great
experiences, help you express your image and difference. Go2Joy believes that no matter
who you are (age), what you look like (appearance), where you are (distance) or who you are
in love with (gender), you can enjoy unlimitedly.
● Brand differentiate
Go2Joy quickly won the hearts of customers by providing diverse booking options by the
hour - overnight - by day, enhancing the experience through 360-degree room images,
diverse payment methods (direct or via electronic payment gateways such as Payoo, Momo
and OnePay), many attractive offers daily, and hundreds of thousands of hotel reviews from
users daily. References
 ● Segmentation and target market
Go2Joy targets local hotel customers with a short-term booking model, Go2Joy aims
at couples, friends groups and family who wish to book hotels on a short-term basis. The
applications focus on the target audience of couples, who wish to book hotels in their local
area without any hassle.
● Market performance
After nearly 4 years of presence in the market, the Go2Joy booking application has attracted
nearly 1 million users thanks to its flexible hourly booking feature and permanent offers.
Launched in 2017, by May 2019, Go2Joy has received an investment of 400,000 USD from
investors KB Investment and Invention Lab, and many others investments from big
companies from outside and inside Vietnam.

● Competition:
According to a survey on online travel agencies (OTA) usage conducted in November
2020, Booking.com was the leading online travel agency used in Vietnam as chosen by 62
percent of the respondents. Agoda was a close second as 61 percent of the respondents had
used this agency before. Although international platforms such as Booking.com, Agoda, and
Traveloka currently dominate the market based on usage, local companies like mytour.vn and
Vntrip.com have been gaining awareness from consumers in the country. References.
III. Competitors
1. Booking.com
Founded in 1996 in Amsterdam, Booking.com has grown from a small Dutch start-up to one
of the world’s leading digital travel companies. Part of Booking Holdings Inc.
Booking.com’s mission is to make it easier for everyone to experience the world.
2. Agoda
Beginning as an e-commerce start-up based in Singapore in 2005, Agoda has grown to offer a
global network of 2 million properties in more than 200 countries and territories worldwide.
It provides travelers with easy access to a wide choice of luxury and budget hotels,
apartments, homes, and villas to suit all budgets and travel occasions. Headquartered in
Singapore, Agoda is part of Booking Holdings and employs more than 4,000 staff in more
than 30 countries. Agoda.com and the Agoda mobile app are available in 38 languages.
IV. Research objectives and methods
1. Research objectives
- Determine the users, who are currently using the applications, perceptions of Go2Joy
services, finding out their reasons for using the platforms and problems.
- Determine the users, who have left the application, reasons of why they leave Go2Joy.
2. Target audience
- People who are using the apps
- People who has left the apps
3. Gathering data
a. Secondary data (Exploratory research): use the available information from the
internal database and external sources (Social media, Search engines, Articles,…) to
understand the general customers’ perception on the current performance (brand
proposition, sales, customer satisfaction) and seek any available recommendations for
improvement from the public and the competitors.
b. Primary data:
Research method 1: Exploratory research - Qualitative data
● Research instrument: Focus Group Interview
Interview a small representative group of customers about their experience on the hourly
hotel booking apps to find out what needs to be improved or maintained to suit the
customer’s preference.
● Sample frame and size:
The sample will involve 3 - 4 groups, each has 6-7 people.
● Sampling method: Purposive sampling
The customers chosen will be representative of the target segments, have purchase abilities
and the basic knowledge about e-commerce with the age and gender spread evenly.

Research method 2: Causal research - Quantitative data

● Research instrument: Market testing - A/B testing
After knowing what needs to be improved from the information gathered from secondary
sources and the customers, the final alternative marketing programs sorted out will be tested
in the real business settings to find out the changes that best maximize the future performance
of the company’s booking app and attract customers.
● Sample frame and size:
The testing will target the sample of 2000-5000 respondents who are either current or
potential customers of the hotel booking app reached through different marketing mediums.
● Sampling method: Simple random sampling
In this situation, the one exposed to the test is picked totally by chance, and every member of
the population has an equal chance of being chosen, which decreases selection bias by
allowing the sampling error to be calculated.
Assignment 2:
Exploring an E-commerce Industry in VN by using Secondary Data
● Size (Volume, Values)
- According to a report by Vietnam e-Commerce and Digital Economy Agency
(governed by Ministry of Industry and Trade), with 53% of the population shopping
online, the e-commerce market in Vietnam grew by 18% in 2020, reaching 11.8
billion USD, accounting for approximately 5.5 percent of the total retail sales of
goods and services in Vietnam that year.
- As one of the fastest-growing internet economies in Southeast Asia, e-commerce in
Vietnam is estimated to reach a market value of US$39 billion by 2025, ranking
second only to Indonesia.
● Growth Rate (for the past few years and for the future)
Past:
- Vietnam E-Commerce Association (VECOM) reported that Vietnam’s ecommerce
market grew at an average annual rate of 30% from 2015 to 2019.
- Vietnam has one of the fastest growing internet economy in Southeast Asian, with a
growth rate of 36 percent in 2020.
Future:
- User penetration will be 58.2% in 2022 and is expected to hit 70.1% by 2025.
Revenue is expected to show an annual growth rate (CAGR 2022-2025) of 16.98%
● Key Players
- Shopee, Lazada, Tiki and Sendo are the 4 most prominent e-commerce platforms in
Vietnam. Specifically, Shopee is the e-commerce platform with the largest market
share in Vietnam today with sales up to 43,118 billion VND, accounting for 72% of
the market share as of May 2022.
- In second place is Lazada with a market share of 20.9%, And Tiki and Sendo are the
next two major e-commerce platforms to come.
● Segments (Tìm về segments + Size, growth rate for each segments)
Target segments: (usually about 3 - premium, standard, low)
● According to Statista Global Consumer Survey 2020, there is no gender difference
between online shoppers in Vietnam, with half male and half female.
● In terms of income, online shopping customers are evenly distributed in 3 groups of
low, middle and high income. And in terms of age, the age group that mainly
participates in online shopping is the 25-34 age group, which accounts for 31%, then
the 35-44 age group accounts for 25%.
● The common feature in these two age groups is that they are both financially
independent. The two age groups that account for the third and fourth highest
percentages are 18-24 (18%) and 45-54 (17%).
● In which, the items most consumed by women are clothing, shoes, cosmetics and
body care, while men account for the majority of consumption in consumer
electronics and household appliances.

● Major trends (future and current): Linh

1. Trends of combining online and traditional channels
Omnichannel is a new form of retail that utilizes both online and traditional channels by
joining e-commerce platforms, using available online marketing tools, shipping, and support
packages, and helping sellers from e-commerce floors save costs when expanding their online
business. Today, most sellers have both traditional stores and online sales channels on
shopping sites like Shopee, Tiki, and Lazada. Selling online is also a tool to help sellers
increase their income and reach many customers from afar.

2. Live stream shopping

Audiences may also interact with the broadcast in real time by leaving comments, which
helps marketers enhance their customer connections. It simulates the in-store purchasing
experience, where sales were typically made through face-to-face discussions about items.
Live streaming is an excellent approach to increase your brand's appeal and distinction. Live
commerce, when done correctly, boosts a brand's attractiveness and uniqueness while also
driving more online visitors. It's also a low-cost option to create more content for a brand's e-
commerce site, social media, and other channels, where the post-live video may be shared as
a shoppable on-demand experience.

3. Experience virtual reality technology when shopping online

Surprisingly, 77.24% of customers abandon their shopping carts before making a purchase.
This suggests that businesses must do a lot more to persuade shoppers to stick with their
decision and buy products online. Virtual reality is a new technology that could be able to
help. It has the potential to transform the world of retail, and nearly a third of customers say
that more should be invested in these technologies to guarantee that they play a greater part in
their shopping experience. With the above utilities, VR virtual reality technology is expected
to bring a new, convenient and attractive shopping trend to buyers. Around the world, many
product vendors have started to implement this technology to serve customers. In Vietnam,
the trend of applying VR technology to serve consumers is also gradually forming.

● SWOT (For the e-commerce industry): Lam, Quan

Strength:
- Vietnam’s place within ASEAN e-commerce: Vietnam’s e-commerce is quickly
catching up with its ASEAN peers, ranking 86 in the 2020 United Nations E-
Government Survey. Its 40 million online shoppers spend an average of US$210 per
year, making it the region's second-largest e-commerce Southern Asian market. With
increasing internet access, smartphone adoption, and growing trust in online
shopping, Vietnam's e-commerce market is expected to expand in the near term.
- Foreign investments: The success of several Vietnamese-based ecommerce platforms,
including Tiki, Sendo, and Thegioididong, demonstrates Vietnam's ability to foster e-
commerce. Tiki received a US$130 million investment from NorthStar Group, as well
 as a majority stake from China's JD.com. Another example of these investments is
Sendo.vn's US$51 million acquisition by Japan's SBI Holdings.
- Digital payments: The increased acceptance of digital financial technology (fintech)
and the COVID-19 pandemic have resulted in an increase in demand for contactless
and cashless transactions. Also, the accelerated development of Vietnam's 4G
infrastructure has dramatically brought down its mobile internet costs, making it the
10th cheapest in the world. This has been one of the pillars for the rapid adoption of e-
commerce and digital payments in Vietnam.

Weakness:
- Lack of trust: The greatest impediment to the growth of E-commerce in Vietnam
remains a lack of trust. It covers a wide range of transactions, from product quality to
customer service, data protection, unfulfilled deliveries, and so on. This lack of trust
stems from the country's immature market and lack of technological infrastructure.
- Highly competitive E-commerce market: The market is currently undergoing intense
competition, with E-commerce global behemoths pouring massive investments into
claiming the prominent spots. In general, the capital investment race invisibly
strengthens and expands large ecommerce businesses. Meanwhile, it creates more
barriers to the Vietnamese ecommerce industry in the long run due to a lack of
sufficient capital.

Opportunities:
- Covid 19 brings firms to convert into 100% online trading. Thus reducing
infrastructure, maintenance costs.
- Online banking/ wallet: encourage large transactions online. In the past, people would
go directly to the store to make large transactions, but now online banking and e-
commerce make it easier to buy things right from home.
- AI: implementations of AI into marketing research and predicting consumers’ trends.
Besides, AI implementations help recommend every individual with ads that match
their needs, which is also called high-personalized advertising.
- Data: unlike the past times, now data is available everywhere and easy to access.
Firms need to figure out how to analyze and sort them to turn into insightful
information.
- Affiliate marketing with KOLs: using KOLs is relatively cheap for SMEs to build
brand image. Alongside with the growth of Tiktok, Instagram and other platforms,
consumers tend to be open with new brands.
Threats:
- Personal data: online banking & transactions is a whole new convenience, but there
are some threats that go along with it. Personal information can be stolen and sold to
third parties. E-commerce platforms have the link to personal ID and bank account,
the database of such personal things is huge and every hacker won't miss out the
opportunity to break in.
 - Legal framework: Vietnamese has very few laws on e-commerce like taxation, etc.
besides, return policies on e-commerce platforms are not adequate yet. Finally,
consumers cannot be sure about the authenticity of the products.

https://magenest.com/vi/dinh-hinh-thi-truong-thuong-mai-dien-tu-2020/
https://magenest.com/vi/thuong-mai-dien-tu-hien-nay/

● Drivers/ Motivations vs Barriers (for new player/ market entry) - Phương

The Drivers/ Motivations for new player/ market entry
1. Financial benefits
● Require fewer resources than traditional retail stores, helping business to save money
on transaction costs: orders can be shipped from the warehouse or wholesale directly
to the customer. (Link)
● E-business can reduce transaction costs by decreasing the time it takes to complete
business processes. An automated system can save two-thirds of the costs involved in
manually processing a customer order. Invoices can be processed quickly and
accurately. Prevent the long process of entering and retaining historical data. (Link)
In addition, the process easily reduces labor and other costs in different areas
including document preparation, email preparation, calling, data entry, overtime,
reconciliation, and supervision. Link

2. Global scale
● Progress in logistics and deliveries have enabled nearly every business to buy, sell and
liaise on a global scale.
● The process of selling products or services online across geopolitical borders to
customers in foreign countries. With so many ecommerce platforms, marketplaces
and digital solutions available, there are practically no limits for merchants looking to
sell online, which makes it easier than ever for businesses to go global. Link
● Since shoppers don’t have to make it to the shop to browse your products, the
business will be gaining loyal customers across the country.

3. Vietnam E-commerce has increasingly fast growth

● Vietnam is expected to be the fastest-growing e-commerce market in Southeast Asia
by 2026, with e-commerce Gross Merchandise Value (GMV) reaching 56 billion
USD by 2026, 4.5 times the estimated value of 2021, according to a report by
Facebook and Bain & Company.
● An increasingly big amount of consumers in the market:
+ Vietnamese consumers switched to a new online marketplace Link
+ The survey of the Ministry of Industry and Trade shows that, by 2020, Vietnam will
have 49.3 million people participating in online shopping (in 2016 it was recorded to
be only 32.7 million people). Link
+ Unlike physical stores that are limited to their physical area, e-commerce has no such
limitation to how wide your customer reach can be. E-commerce provides increased
 visibility and sales by letting everyone that’s looking for your products online find
you.

Barriers for the new players/ market entry

- Sunk costs
The E-commerce industry held high-sunk costs for firms. Firms ability to exit
without incurring losses is reduced; therefore, sunk costs act as a barrier to entry for
firms. Latcovich and Smith divide sunk costs for Internet firms into two types: set-up
costs and endogenous sunk costs. Set-up costs are administrative costs, the setting up
and maintenance of a functional website, and the distribution warehouse. Endogenous
sunk costs are a choice variable for firms and are spent on those factors which are
necessary for attracting and maintaining a customer base, including “costs of
improving speed of processing, security of transactions, development of website, and
advertising”.
→ Higher competition leads to higher endogenous sunk cost, which discourages
entry, as profit decreases with the number of firms.

→ Since investments in sunk costs increase productivity, a threshold level of sunk costs is
established, so firms below this point will not be able to sell enough to cover fixed costs and
will exit the industry; with an increase in sunk costs, the threshold level shifts even higher.
Thus, the low productivity firms are automatically selected out by this market mechanism. It
soon became evident, though, that the massive amounts of advertising and web site
development necessary for online success (i.e. investments in sunk costs) would make it
difficult for all but the few firms who could afford these expenditures to survive.
https://sites.duke.edu/djepapers/files/2016/08/jones.pdf

- New legal factors in Vietnam hinders new entrants from foreign countries, due to new
regulations on market access provisions, which means that those controlling one or
more enterprises in a group of five leading enterprises in Vietnam’s e-commerce shall
undergo an appraisal regarding national security matters. This surely brings
uncertainty over market entry for big e-commerce players.

● Influential legal factors (if any) - Phương.

From 2020 to now, there are several updates of decree on the activities of e-commerce, which
affects the foregin business investments and activities in Vietnam.

The main purpose of making an amendment to the current regulations on e-commerce is for
the management of tax collection. Thus, the regulations will impact foreign investors directly
that are involved in e-commerce activities as well as foreign traders who are e-commerce
suppliers and service providers.

- In September 2021, the Government issued Decree 85/2021 amending and

supplementing some articles of Decree 52/2013 on e-commerce:
 + Foreign businesses need to comply with the local laws of setting up websites under
Vietnam domain names, language, and a representative office in Vietnam. The
Ministry of Industry and Trade (MoIT) in collaboration with the Ministry of
Information and Communications, Ministry of Finance and so on, will regulate the
threshold for the number of transactions or purchases. Link
This regulation is different from the old requirement under Decree
52/2013 which does not require foreign entities to have its office or representative in
Vietnam and would limit cross-border e-commerce services provided by an offshore
supplier to customers in Vietnam. Link
+ Foreign investors can invest in e-commerce services in Vietnam through establishing
a new company in Vietnam or investing in an existing company in Vietnam. That
means, other forms of investment like business cooperation contracts or project
implementation without commercial presence in Vietnam is not acceptable. Updated
Decree 85

→ According to Samuel Son-Tung Vu, partner at law firm Bae, Kim & Lee Vietnam, Decree
85 creates additional barriers for foreign investors in the e-commerce market.
● Those who wish to control one or more of the leading e-commerce enterprises may
face difficulties when applying or amending the respective license.
● In addition to these obstacles, overseas enterprises may also face higher costs due to
the requirements to amend and upgrade their respective internal system, regulations
(for example, regulations on operation of e-commerce trading floors), employee
conduct training, and more.
→ For domestic players, with the new barriers on e-commerce licenses, they may avoid
hostile takeovers by foreign investors. https://vir.com.vn/changes-to-break-e-commerce-
stride-88409.html

- In 2020, Decree No. 126/2020/ND-CP:

Governs the value-added tax (VAT) and personal income tax (PIT) imposed on tax
resident business households and individuals, which sell at least a fraction of their
goods or services via digital platforms (e-commerce).
Procedural and technical details are governed by an executive roadmap devised by the
competent tax authorities.

→ The proposed new principle of tax collection has met opposition in public venues, giving
way to complaints from local e-commerce platform operators in fear of onerous bureaucracy
and excessive costs.

→ However, participants in the e-commerce industry – regardless of their origin and business
model – should therefore carefully assess their exposure to these changes and their technical
and legal capability in complying with them.

→ The goal should be to devise a concept, under which individual merchants’ information
can be provided to tax authorities with the same degree of care, transparency and
accessibility, as their own information. As a result of this ‘changing of the guards’ in tax law,
e-commerce platforms may also have to revise their commercial strategy by (re-)allocating
these risks amongst the parties. Link

Note:
Cho Assignment 1:
Case 2:
- Market potential: size, volume, growth rate
- Business performance: revenue, share, awareness, users, retention, customer’s
satisfaction, brand image,
- Write down research objectives
- For the research design, cái research methods nên consistent. VD: làm online thì nên
online hết cho các target groups.
- Number of target groups cần phải lớn
- Experiments (casaul) sẽ khó thực hiện tùy thuộc vào các trường hợp, vì experiments
nó có thể dễ dàng bị ảnh hưởng bởi các yếu tố khác.
Case 4: GOOD
- Objectives? Thiếu how against competitors
- Thiếu mkt performance between G2J and competitors, and whether it is effective
- Search for all the current mkt program working
- Sampling method
- MKT testing has pros and cons (mkt program should be confidential, competitors
have time to prepare)

Cho Assignment 2:
- For secondary data, nên check kỹ phần đơn vị và date.
- Các data phải liên kết vs nhau. Ví dụ: thông tin về local market (VN), nhưng lại kết
luận về Southeast Asia → SAI.
- Thông tin should be up-to-date.
- Nên tìm nhiều nguồn về số liệu cho những phần Market Size, Revenue, Growth.
- Segments:
+ Nói về typical customers
+ Chú ý tới những khách hàng B2C, B2B
+ Size, growth rate của segment là gì
- Cái j cũng cần phải có luận điểm và evidence để chứng minh.

https://iris.marketing/e-commerce-2020-vietnam
http://m.hanoitimes.vn/nearly-50-of-vietnamese-shop-online-report-313933.html
https://esw.com/blog/vietnam-ecommerce-insights/

International Trade Administration (2020) Vietnam Ecommerce.

https://www.trade.gov/market-intelligence/vietnam-ecommerce
Minh, N. N. (2022). E-commerce market value in Vietnam from 2014 to 2020.
https://www.statista.com/statistics/986043/vietnam-ecommerce-market-value-revenue/
Iris. (2021). E-commerce in Vietnam 2020 : Viet Nam. https://iris.marketing/e-commerce-
2020-vietnam

VietnamCredit. (2021). Overview Of Vietnam’s E-Commerce Market In 2021.

https://vietnamcredit.com.vn/news/overview-of-vietnams-e-commerce-market-in-
2021_14374

https://www.statista.com/outlook/dmo/ecommerce/vietnam#revenue
https://www.brandsvietnam.com/congdong/topic/23184-iPrice-Bao-cao-toan-canh-
Thuong-mai-Dien-tu-Viet-Nam-2019-2020
https://vanhoadoanhnghiepvn.vn/bat-ngo-lon-tai-thi-truong-thuong-mai-dien-tu-viet-
nam/
https://cpanel.infoq.vn/common/reports/files/khao-sat-ve-trang-ban-le-truc-tuyen.pdf
 Review the 4 topics, work in detail the research design:

Việc cần làm:

- Thêm Research objectives
- Tập trung và làm kĩ hơn vào phần Sample
- Thêm Market Overview về cái industry của case (tùy case)
● Lưu ý: có evidence, số liệu support thông tin.