HCM City (VNS/VNA) - Potential benefits and challenges for thedigital economy and new-age regulations for new-age businesses were discussedat a workshop in Ho Chi Minh City on August 30.

Pradeep S Mehta, secretary general of CUTSInternational, said: “The digital economy is about three things: big data,advanced analytics, and the Internet of Things. And it is undeniably changingthe nature of the job market, corporate competition and corporateinfrastructure.

“Fifteen years ago, when we spoke about bignames in businesses, we counted oil companies, car manufacturers, retailchains, airlines, consumer goods producers, etc. Nowadays, when we talkabout corporate giants, it is Apple, Google, Amazon, Alibaba, Facebook,Uber, etc. that come to our mind.”

They are part of a small yet influential groupof companies that constitute the cutting-edge of digital advancement, he said,adding that in a sense they have spearheaded digitalisation.

Vo Tan Thanh, Vice Chairman of the VietnamChamber of Commerce and Industry (VCCI), said the digital economy is anindispensable step as the traditional economy gradually becomes saturated.

“The development of the digital economy andtransfer and utilisation of technologies will provide an opportunity fordeveloping countries like Vietnam to catch up with other developed economiesquickly,” Thanh said.

If businesses can take advantage oftechnologies, they can improve their efficiency and expand markets, he said.

According to Google and Temasek, SoutheastAsia has the fastest growing global internet population with around 260 millionusers.

The number is projected to increase to 480million by 2020, Pham Que Anh, director of CUTS International in Vietnam,said.

The value of its internet economy is expected togrow to 200 billion USD by 2025, primarily driven by growth in e-commerce, shesaid.

Nguyen Manh Hung, deputy chairman and generalsecretary of the Standard and Consumer Association, said e-commercehas developed rapidly in Vietnam and there is a lot of room to develop further.

Business-to-customer transactions had been worth4.07 billion USD in 2015, up 37 percent from 2014 and accounting for 2.8 percentof total retail and consumer services, he said.

Last year, 35 percent of businesses had onlinesales channels, a year-on-year increase of 7 percent, while 60 percent ofconsumers said they shop online, he said.

“Application of information and communicationtechnology advancements in commerce has brought benefits for both sellers andbuyers,” he said.

Digital technologies enable businesses topromote their products, services and brands to customers in the most effectivemanner, and at the same time help consumers find information about the productsquickly, easily and comfortably, he said.

But the digital economy also comes with concernslike cyber security, data and privacy breaches, behavioural discrimination andmanipulation, lack of liability, and job losses, Mehta said.

Delegates at the workshop said the digitaleconomy has come to be known as an incubator for new-age businesses, which arebased on disruptive technologies and innovative business models.

Despite their huge success, many such businesseshave found themselves in turmoil. Due to the disruptive nature of suchbusinesses, regulatory bodies often find it difficult to regulate suchentities, and may end up applying archaic regulations, which may hamper theirgrowth, they said.

Therefore, developing appropriate legalregulations that promote the welfare of consumers and ensure the legitimaterights and interests of all enterprises in the market and at the same timestimulate their creativity are needed, they said.

At the workshop, CUTS International launched aproject titled “Regional Inclusive Growth Project” it will implement in threecountries - India, the Philippines and Vietnam - for 18 months till the end of2018.

It is aimed at highlighting the needto strengthen the digital economy in these three countries by showcasingbest practices from across sectors and geographies regarding the benefitsbrought to consumers by digital platforms and technologies and identifying andpushing for the removal of bottlenecks and barriers.-VNA