Developing an Online Business in Vietnam - Research Proposal Example

? E-Business in Vietnam Background New business developments have been shaping up, outdoing and replacing theold ways and bringing on board new ways of operations. Commerce and business are better fields to be used to analyse the progress. Dynamics in business varies from selling and buying tangible commodities and services on a one-on-one basis to even making sales to unknown clients at a distance. E-business is such an example of these developments. It entails transacting business operations over cyber space. The online hosting makes it possible for one to establish a business, look for customers and make deals over the Internet. The integration of ICT into commercial applications has greatly changed the business sector. One can now engage in business activities with foreign countries, yet at the convenience of his / her office. Establishing, meeting and transacting business deals have now revolutionised (Phan, 2003, pp. 581–582). However, there are business ethics, conduct and regulations that must apply even to the online business dealings. As one intends to venture into this kind of trade, specific procedures are bound to apply. This ensures sanity, law and order in the execution of various business activities. Innovations in technology have not been exhaustively explored, and thus, there exist great opportunities for exploitation in business. Therefore, in the analysis of the untapped business opportunities through online trading, this business research intends to learn more of the e-business prospects existing in the country and analyse the regulations of the country and the future trends for business operations. Rationale / Thesis Trade has certainly been seen as a key pillar of any government and country’s growth and development. Exploitation of many forms of businesses is commendable in order to diversify and reduce risks of overreliance on certain sectors of the economy. Online business has been seen to thrive well in many parts of the world with the returns being enormous. However, in some regions, the field remains unexplored or underexplored. The emerging world trade trends indicate that the success of trading activities in the future may rely much on the Internet for activities such as marketing, meeting clients, striking deals and sealing up business transactions. It is thus important that the government and the people of Vietnam explore the untapped field of doing business over cyber space. Justification Many of the previous studies in trade have concentrated more on the other modes of doing business and neglected the evolutionary trend of online business. Vietnam has in the recent past recorded commendable economic growth. Many countries, and especially the Western economies, are continuously directing their investments in trade into Vietnam. It is, therefore, of sound importance for researches to be done in order to have substantive information in this field, which would help investors in the decision making process. By having proper information on the trends taking shape in Vietnam in terms of trade, all stakeholders in the economy would be in a better position to make informed decisions as pertains to trade and business. Objectives To evaluate the effects of e-trading on the overall trade performance of Vietnam To draw policy recommendations for stakeholders in trade and development agencies Questions 1. How far has the online trade been exploited in Vietnam? 2. Who are the dominant investors in the sector: the Vietnamese or foreigners? 3. What are the other opportunities available for exploitation in terms of trade in Vietnam? 4. How are trade regulations formulated and enforced in the country and what is the role of the private sector and public sector in this? Hypothesis This research will be based on three hypotheses. These hypotheses are based on a generalisation of ideas, which will need to be substantiated by research. 1. Hypothesis: If economic performance of any economy is related to trade, then e-commerce is of importance towards Vietnam economic performance. 2. Hypothesis: Trade over the Internet is an important aspect of commerce in the current global economy. 3. Hypothesis: If technology is an important aspect of everyday living in the current world, then e-commerce is a green field for exploitation. What Is the Value of Your Research? Findings show that almost all sectors of human life are currently driven by the information technology. A study by TNS shows that digital life has overtaken the world (Anon, 2011, pp. 1–29). Merely all transactions of the day are dependent on technology. This study intends to challenge previously conducted researches in the field of online business transaction. Many of these researches have been done in developed economies of the western countries, with fewer studies been done on developing countries. By undertaking this study, a pool of knowledge will be added into the existing base, and this will be useful for future studies. Moreover, as a continuation of the researches that have already been done, this study intends to fill the existing gaps. This study will also analyse the available opportunities in business in developing countries such as Vietnam and find probable hindrances that investors in e-commerce may face in the future. Literature Review Extensive research studies have been done in the past on the trade patterns and emerging trends. Vietnam has also faced such scrutiny in terms of evaluation of the available opportunities in various sectors. E-commerce has equally been studied and appropriate mechanisms have been laid down to effectuate the business prospects. A study by Nguyen, Alam, Perry and Prajogo (2009) on “the entrepreneurial role of the state and SME growth in Vietnam” shows that Vietnam is in its early stages of development into a socialist economy. It faces adequate skilled labour, land, capital and technologically supportive services important for trade development. According to a report on Vietnam entrepreneurs in 2012, many investors have found greener pastures in the e-trading. According to the findings, many of the youths are engaging into the business as it is relatively easy to venture into with only a laptop, and one can transact business worldwide (Anon, 2012b, pp. 1–2). A study by Tuan (2011) revealed that most of the urban areas in Vietnam are well supplied with Internet services through optic broadband cables. However, the network coverage is very poor in the rural areas, thus affecting the possible prospects of many people venturing into online trading (Tuan, 2011, p. 7). Another study by IIPA (2012) showed that there is a tremendous increase in mobile service subscribers. Many are 3G users and as such, have easy access to online contents over social media platforms and the Internet. However, it also showed that piracy as a threat has also continuously thrived. Better measures by the regulatory bodies are required in order to formalise all trade activities within the Vietnamese cyber space (Anon, 2012a, p. 277). Vietnam faced numerous policy changes in the ‘80s. Establishing business ventures has always faced challenges owing to regulations and set guidelines. External investors in the past faced harsh conditions and thus necessitated appropriate changes in order to incorporate foreign investments (Carlen, 2012, pp. 3–7). Methodology This research study will discuss specific business theories and their role in shaping e-business in Vietnam. Various economic models apply in designing and establishing business ventures. By applying the models, it is possible to scientifically prove and analyse business trends. By performing regression analysis of various variables as pertains to economic performance of investors in Vietnam, this study would be in a position to recommend appropriate policies and their implications for the Vietnamese government and the investors at large. The reason for the methodology in use is that as other scientific studies, it requires factual evaluation. Data collected can be scientifically analysed and findings interpreted for easy application. Sampling Procedure The practical methods to be used in the research are analysing archival work and printed materials in libraries. I intend to use raw facts and figures alongside processed data. Primary data will involve one-on-one interview with multinational corporations currently engaged in trading activities with Vietnam. Secondary sources will target the study of biographical data, books and archived qualitative Vietnamese research materials. Survey Tools The required data will be collected from various issues of the Vietnamese National Bureau of Statistics, statistical abstracts, economic surveys and various development plans. The research will use administered questionnaires, verbal interviews and literature review of the print materials. The analysis of the collected data will be done by using scientific software. Conclusion In conclusion, we have seen that the world has now become more complex with various innovations coming up. Business transactions have also shifted into the application of information technology. The developing economies are slowly following the patterns of the developed economies in their mode of trade and business. Vietnam is a country gradually transforming into e-business. However, various infrastructural adjustments still pose a threat to the success of the same. Different players in the global market eye the opportunities that are in the country for business. The e-commerce has been seen as a good way of transacting business even with the physical absentia of the seller, buyer and the market. References Anon. (2011). Digital life. Understanding the opportunity for growth online. TNS. Anon. (2012a). 2012 special 301: Report on copyright protection and enforcement. Retrieved 10 April 2013 from http://www.ustr.gov/sites/default/files/2012%20Special%20301%20Report_0.pdf. Anon. (2012b, June 20). Vietnam entrepreneurs fine fertile ground online (pp. 1-2). Retrieved 10 April 2013 from PHYSorg.com. Carlen, A. A. (2012). A business in Vietnam. Retrieved 10 April 2013 from http://www.swedenabroad.com/SelectImageX/186376/StartingABusiness.pdf. Nguyen, T. H, Alam, Q., Perry, M., & Prajogo, D. (2012). The entrepreneurial role of the state and SME growth in Vietnam. JOAAG, 4(1), 1–2. Phan, D. (2003). E-business development for competitive advantages: A case study. Information and management, 40, 581–590. Tuan, T. M. (2011). Broadband in Vietnam: Forging its own path. Retrieved 10 April 2013 from http://www.infodev.org/en/Publication.1127.html. Read More