Econ
Feasible solution for enterprises integrating in global value chain
Despite having integrated in the world economy for more than 20 years, but Vietnamese enterprises still face difficulties participating in the global value chain, especially in marketing, distribution and customer care. However, with the rapid development of digital technologies and social network, these may prove efficient solution for enterprises.
According to statistics since April, Vietnam has 38 million users of social networks, in which 94% frequently use through smart phones. As such, information obtained at the Vietnam Online Marketing Forum 2017 (VOMF) in August showed 46% enterprises are using social network for advertisement and achieved positive results. A similar survey conducted by Facebook showed that 53 million Vietnamese people are using Facebook, while this number 3 years ago was only 23 million people. The rate of Vietnamese making transaction in Facebook or in connecting with an online shop is above average in Asia, which is only behind China and Japan.
Meanwhile, according to statistics from the Vietnam Chamber of Commerce & Industry (VCCI), the biggest challenges in private sector remains the distribution channel and looking for market. Currently, main customers for private enterprises in Vietnam are mainly individuals or other private enterprises. While only 10% of enterprises can access foreign markets. Source from VCCI also showed, only 21% Vietnamese enterprises taking part in the global value chain. This has caused small and medium enterprises (SME) difficult in receiving benefits from the Foreign Direct Investment (FDI)’s influence through technology transfer, training and improving productivity. All these information above are evident that social network may become feasible solution for SMEs to find way and join the global value chain in marketing, distribution and customer care.
Recently, the fierce competition between traiditional taxi firms and ride-hailing apps based on the sharing economy proves the irreversible trend of the technological revolution 4.0, in which social network is one of its essential parts. A survey conducted by Ho Chi Minh Research & Development Institute of Economics showed that, Vietnamese start-ups still have difficulties taking advantage of online business model in social networks. However, if enterprises want to grow sustainably and catch up with the modern trend, it is vital that they can use social network efficiently. Previously, in order to have a report on a specific products in market, or a consumption trend, enterprises have to hire independent experts with high cost. But at present, low cost survey in social network obviously is an attractive option for enterprises to know more about product information, target customer and customer’s behavior. However, the use of social network to promote and facilitate business must be taken care of, as the speed of sprading information through this channel is way faster than other media channels. As such, negative responses in related to products can also spread out of control. As such, in reality, many enterprises are unsure of how to deal with negative responses from social networks.
However, one should consider this source of information should be only for reference, which is not a measure for business efficiency. As revenue and profit are what they should pay most attention to. In current day, enterprises should identify for themselves the most appropriate business model and whether that business model is suitable with a specific social network. As if enterprises looking to access North America's market, they have to think of Twitter instead of Facebook. Besides, if enterprises want to expand its business on social network, they should pay attention to intellectual property.
Meanwhile, according to statistics from the Vietnam Chamber of Commerce & Industry (VCCI), the biggest challenges in private sector remains the distribution channel and looking for market. Currently, main customers for private enterprises in Vietnam are mainly individuals or other private enterprises. While only 10% of enterprises can access foreign markets. Source from VCCI also showed, only 21% Vietnamese enterprises taking part in the global value chain. This has caused small and medium enterprises (SME) difficult in receiving benefits from the Foreign Direct Investment (FDI)’s influence through technology transfer, training and improving productivity. All these information above are evident that social network may become feasible solution for SMEs to find way and join the global value chain in marketing, distribution and customer care.
Recently, the fierce competition between traiditional taxi firms and ride-hailing apps based on the sharing economy proves the irreversible trend of the technological revolution 4.0, in which social network is one of its essential parts. A survey conducted by Ho Chi Minh Research & Development Institute of Economics showed that, Vietnamese start-ups still have difficulties taking advantage of online business model in social networks. However, if enterprises want to grow sustainably and catch up with the modern trend, it is vital that they can use social network efficiently. Previously, in order to have a report on a specific products in market, or a consumption trend, enterprises have to hire independent experts with high cost. But at present, low cost survey in social network obviously is an attractive option for enterprises to know more about product information, target customer and customer’s behavior. However, the use of social network to promote and facilitate business must be taken care of, as the speed of sprading information through this channel is way faster than other media channels. As such, negative responses in related to products can also spread out of control. As such, in reality, many enterprises are unsure of how to deal with negative responses from social networks.
However, one should consider this source of information should be only for reference, which is not a measure for business efficiency. As revenue and profit are what they should pay most attention to. In current day, enterprises should identify for themselves the most appropriate business model and whether that business model is suitable with a specific social network. As if enterprises looking to access North America's market, they have to think of Twitter instead of Facebook. Besides, if enterprises want to expand its business on social network, they should pay attention to intellectual property.
