The e-commerce market of Vietnam is seeing the rapid expansion of foreign-invested platforms while domestic online markets find it difficult to compete.(Photo ictnews.vietnamnet.vn) “Whenforeign enterprises with huge resources flood in, it is difficult for domesticenterprises to compete and domestic enterprises can soon run out of steam,” hesaid.
Domesticonline market chodientu.vn whichpioneered in online shopping in Vietnam must now be closed for an upgrade.
“Domesticenterprises do not need support but rather a runway long enough that they cangain enough momentum to compete [with foreign companies],” he went on.
Binhsaid that foreign enterprises had huge economic resources and when theyexpanded to a certain size that they could control the market, there would beproblems for smaller competitors.
Hestressed that promoting the development of domestic platforms was important toensure the healthy and sustainable development of the e-commerce market.
Headded that Vietnam should introduce policies to balance the development of boththe sharing economy and traditional economy and create a fair businessenvironment.
Accordingto Vu Hoang Linh from the Vietnam Institute of Economics, the competition in Vietnam’se-commerce market could be much more robust. Alibaba, Tencent and JD.com were foreign giants which hadinvested significantly in Shopee and Tiki to establish their presence in Vietnam.The world’s largest e-commerce company, Amazon, has also officially entered Vietnamgiving Vietnamese sellers access to foreign markets through their platform.
Oflate, a new generation of free trade agreements has made Vietnam an attractivemarket to global retailers.
LaiViet Anh, Deputy Director of the Vietnam E-commerce and Digital Economy Agencyunder the Ministry of Industry and Trade, said that the Vietnamese Governmentaimed to promote the development of e-commerce, especially in the context ofthe COVID-19 pandemic, adding that e-commerce was regarded as an important partof economic and trade growth.
Shesaid it was necessary to develop appropriate tax policies to ensure healthymarket development.
Connectingwith tax management agencies
TheGeneral Department of Taxation has recently proposed electronically connectinge-commerce platforms to tax management agencies aiming to better collect taxesfrom sellers operating on the platforms.
Itis currently soliciting opinions that must be sent to the tax watchdog beforeJuly 27.
UnderCircular No 40/2021/TT-BTC issued on June 1, value-added tax, personal incometax and tax management of individual sellers would be the responsibility ofe-commerce platforms.
E-commerceplatforms must also provide information on sellers, including revenue, bankaccounts and products, via a database to tax management agencies.
Theelectronic connection between e-commerce platforms and tax management agencieswas expected to start at the beginning of next year./.
VNA
