e-commerce development in agricultural trade promotion in vietnam

VIETNAM NATIONAL UNIVERSITY, HANOI
SCHOOL OF BUSINESS




Doan Tran Nhan
E-COMMERCE DEVELOPMENT IN AGRICULTURAL TRADE
PROMOTION IN VIETNAM.

Major: Business Administration
Code: 60 34 05

MASTER OF BUSINESS ADMINISTRATION THESIS SUMMARY

Supervisor: 1. Dr. Tran Doan Kim
2. Mr. Ha Nguyen, MBA

Hanoi – 2012
TABLE OF CONTENTS

ACKNOWLEDGEMENTS
ABSTRACT
TÓM TẮT
TABLE OF CONTENTS
LIST OF ABBREVIATIONS
LIST OF TABLES, FIGURES, CHARTS, DRAWINGS
INTRODUCTION
1. The imperative of subject
2. Establish the main research subject
3. Research’s objectives

4. Research scope
5. Delimitation of the research’s contents
5.1. The basic elements of E-commerce model
5.2. Assign content to build E-commerce model for Agritrade
6. Research methods
6.1. Data collection methods
6.2. Data analysis methods
CHAPTER 1: THEORETICAL FRAMEWORK
1.1. E-commerce
1.2. The formation of E-commerce
1.3. The situation of E-commerce development in Vietnam
1.4. The operation forms and E-commerce transactions
1.5. Benefits of E-commerce for businesses
1.6. The E-commerce requirements
1.6.1. Technological Infrastructure.
1.6.2. Human Infrastructure.
1.6.3. Security and safety.
1.6.4. Automatic Financial payment system.
1.6.5. Consumer Protection.
1.6.6. Economic and legal infrastructure.
1.7. Definition and content of Trade promotion
1.8. Trade Promotion in E-commerce
1.9. The difference of E-commerce applications in agricultural trade promotion
CHAPTER 2: BACKGROUND AND REAL SITUATION OF
AGRICULTURAL PRODUCTS PROMOTION OF AGRITRADE
2.1. Overall assessment of domestic market for Agricultural product
2.2. Overall assessment of agricultural trade promotion activity of Agritrade.
2.3. Assessing the impact of external environmental factors to E-commerce
application at Agritrade
2.3.1. Impact of economic environment

2.3.2. Impact of political legal environment
2.3.3. Impact of socio-cultural environment
2.3.4. Infrastructure and Internet services for E-commerce
2.3.5. Competitors
2.3.6. Customers
2.3.7. Human resources for E-commerce
2.4. Assessing the impact of internal environmental factors to the E-Commerce
applications in trade promotion activities of Agritrade
2.4.1. Impact of human resources
2.4.2. Impact of financial resources
2.4.3. Impact of technology infrastructure
2.5. Analysis the results of survey and discussions
2.5.1. The results of survey
2.5.2. Results of expert interviews
CHAPTER 3: CONCLUSIONS AND THE PROPOSAL SOLUTION OF E-
COMMERCE DEVELOPMENT FOR AGRITRADE
3.1. The conclusions and findings through the research process
3.1.1. The achievements and limitations of Agritrade
3.1.2. The findings of the research process
3.2. Orientation and perspective of development of Agritrade in the future
3.2.1. Development orientation of Agritrade
3.2.2. Agritrade’s views on the E-commerce application
3.3. Proposal solutions of deploying E-commerce application in Agritrade
3.3.1. Group of Human Resource solutions
3.3.2. Solutions related to infrastructure and technology
3.3.3. Solutions related to business processes
3.3.4. Solutions related to electronic marketing promotion
3.3.5. The other solutions:
CONCLUSION
LIST OF REFERENCES

1
E-COMMERCE DEVELOPMENT IN AGRICULTURAL
TRADE PROMOTION IN VIETNAM.
Doan Tran Nhan
MBA Candidate, 2009-2011
School of Business - Vietnam National University, Hanoi
Supervisor: Dr. Tran Doan Kim
Mr. Ha Nguyen, MBA
INTRODUCTION
1. The thesis title
E-Commerce development in agricultural trade promotion in
Vietnam
2. Necessity of the thesis
Electronic commerce (E-commerce) is a new field and showing
great role in trade promotion, products trading through the global
Internet. E-commerce can help businesses reduce costs and attract
the large customer.
Due to benefits of E-commerce, now many companies over the
world apply this model in their business operation. In Vietnam,
purchasing through E-commerce websites only popular for some
kinds of goods and services such as airline tickets, electronics, cell
phones, computers, books, tours, hotels, cosmetic, etc
Trade promotion is the series of activities to promote the sale of
the business in general and target market. Since the traditional trade
promotion activities are geographically limited, higher costs and
taking long time, so the application of E-commerce seems to
overcome such drawbacks.
In Vietnam agriculture, the E-commerce application is
concerned, facilitated and clearly oriented by the Government
agencies. Besides the traditional trade promotion activities such as

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surveys, trade fairs and exhibitions E-commerce will create a new
promotion method that is simple, convenient, fast and save cost. In
the present, there are some Agri-businesses applying E-commerce in
marketing activities and business of their products. However, only a
few businesses can achieve success from these activities.
Trade Promotion Center for Agriculture (Agritrade) is a
department under MARD. Agritrade’s functions are designing and
implementing agricultural trade promotion activities. Besides trade
promotion programs, Agritrade also developed an important
promotion activity that is agricultural products displaying. The
deployment of both displaying activity and organizing trade
promotion events, Agritrade will perform well as connections
between producers and consumers.
The effective of these activities are not really high and it also
faces some restrictions. Therefore, it is necessary to develop new
models to improve the effective of trade promotion to the
Agricultural products in particular and Vietnam Agriculture in
general. According to the general trend of the times, E-commerce
application seems to be the good solution for Agritrade.
3. Research aim and objectives
Through the learning process, survey and investigation, the
authors found that the required objectivity and subjectivity are
imposed Agritrade in the short term (1-3 years) and long term are:
 AGRITRADE will become a focal point for trade promotion
activities in Vietnam Agriculture.
 Approach E-commerce development trend and apply IT into
operation on promoting agricultural products and local
specialties.
3

 Develop E-commerce model to provide a link between
producers, traders and consumer of agricultural products.
To achieve the above goal, the study needs to utilize the
following objects:
 To systematize basic concepts relating to E-commerce model
and trade promotion.
 Survey and research the activities of trade promotion
activities of agricultural products and local specialties at
Agritrade.
 To propose solutions to develop E-commerce for agricultural
trade promotion.
4. Research scope
The scope of research in space: this is graduated subject so the
scope of the research only for micro and limited to Agritrade.
Specifically, the scope of the research is to study the basic concepts
related to a review topic, agribusiness situation and propose solutions
to develop E-commerce model for agricultural trade promotion
activities of Agritrade.
The scope of research on time: The time for studying the subject
and collecting survey data from January to March 2010 at Agritrade.
This data combined with secondary outside data in last three years.
5. Assign content to develop E-commerce model for Agritrade
In this research, to develop E-commerce model for Agritrade, I
will develop research methods to conduct surveys on the actual
situation of Agritrade’s activities. Overall assessment of the impact
factors inside and outside the organization. It also combined with
analysis of results compiled from surveys, interviews with staffs and
customers of Agritrade and agricultural expert. Since then, I will
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assess the application ability and plans to develop an E-commerce

model for Agritrade.
Based on survey results, analysis of primary data and secondary
sources, I will develop E-commerce model based on market factors,
human resources, finance, and infrastructure for deploying this
model. Moreover, I will also improve sales process, handle orders,
and deliver the product and other support services.
6. Data sources and Research methods
Data used in the thesis were taken from both secondary data
about Agritrade’s operation, reports and statistical data of others
agencies and primary data collected from interviewing Agritrade’s
staff, customers and agricultural expert.
There are a number of techniques used to conduct research which
including: Interviewing staff, customer and expert; economic statistic
method; and methods of description and comparison.
7. Structure of the thesis
Apart from the acknowledgment, abstract, list of abbreviation,
list of tables, figures, charts and drawings, introduction, conclusion,
references and appendix, the thesis is organized in to 3 chapters.
Chapter 1: Theoretical framework
Chapter 2: Background and Real situation of Agricultural
trade promotion of AGRITRADE.
Chapter 3: Conclusion and the proposal solution of E-
commerce development for Agritrade.

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CHAPTER 1: THEORETICAL FRAMEWORK
1.1. E-commerce
1.1.1. The concept of E-commerce
Electric commerce (E-commerce) is a relatively new field. In the
development process it has many different names: “Online trade”,

“Cyber trade”, “Electronic Business”, “paperless trade or commerce”
etc. Recently the name “E-commerce” has become familiar and
became the general convention, which appears in the international
legal documents. Besides, another name is still used and understood
with the same content.
In narrow sense, E-commerce merely restricted in sale and purchase
of goods and services through electronic facilities, especially Internet
and other communication networks. In broad sense, E-commerce is
financial and commerce transactions by electronic means such as
electronic data interchange, electronic funds transfer, sending or
withdrawals by credit card and other activities.
1.1.2. Characteristics of E-commerce
E-commerce and traditional commerce, including the steps:
1. Consumers and providers find each other, consumers want to
find a reliable supplier, while suppliers are conducting
promotional activities, marketing, consulting and customer
support, create trust and entice consumers to own.
2. Evaluation, negotiations and discussions;
3. Organization coordination and delivery of goods;
4. Payment;
5. Confirm the correctness of every step in the purchasing
process.
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However, the E-commerce still contains its own characteristics
compared with traditional trade. It is the ability to create a “virtual
store” on the Internet.
1.2. The formation of E-commerce
1.2.1. The reasons of E-commerce
E-commerce was born as an inevitable development in the harsh
competitive environment. To survive, Businesses must apply

technological advances in effective way. The development of mature
tools such as Internet, Email, and World Wide Web is the reason
to release a new trading method: E-commerce. This method has
greatly hindered with the international trade, especially when the
trading volume is increasing.
1.2.2. The formation of E-commerce
E-commerce is developing rapidly on the global scale based on the
industrial development of information technology (IT). IT industry is
gradually occupied the leading position in the national economy of
many countries.
1.3. The situation of E-commerce development in Vietnam
In 2010, almost 100% of businesses surveyed were implementing E-
commerce applications in many sizes and different levels. According
to survey results, 100% of surveyed businesses were equipped with
computers and each enterprise has 25.8 computers on average. There
are 98% of businesses have Internet connections in many different
forms, in which 89% are connected by broadband (ADSL) and
leased line. Businesses have also focused on exploiting Email, the
basic applications of E-commerce.
Based on the report, in recent years, with the strong development of
Internet and E-commerce, online sales has gradually developed and
become more familiar with officers, students and housewives in large
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urban areas. Nowadays, the most popular online sales form is trading
goods and services through E-commerce website.
However, the statistics show that Vietnam businesses do not proper
recognized the role of the website as a channel of communication
and permanent interaction with customers. Thus, they do not invest
appropriately the time and resources to build, maintain and exploit
efficiently their website.

1.4. The operation forms and E-commerce transactions
1.4.1. The forms of E-commerce activities
a. E-mail
Like ordinary correspondence, partners (consumers, businesses,
government agencies) use email to send information to each other
"online" through the network.
b. Electronic payment
Electronic payment is payment via electronic messages instead of
cash handing.
c. Electronic purse
Electronic purse, known as electronic wallets, is a place for internet
cash, mainly the Internet smart card.
d. Smart card
It looks like a credit card, but in the back of the card, instead of the
magnetic strip, it contains an electronic chip with a small memory for
storing digital money.
e. Digital banking and digital securities trading
Electronic payment system of banks is a great system, which
includes many sub-systems.
f. Electronic Data Interchange
Electronic Data Interchange (EDI) is the transfer of information from
this computer to other computers, among other companies or
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organizations have agreed to trade automatically with each other
without human intervention.
g. Digital Delivery of Content
Content data is the goods that people need its content not themselves
carrying content such as news, books newspapers, music, movies,
radio programs, television and software programs.
h. Retail of tangible goods

Take advantage of multimedia of Web and Java, the sellers build
online the “virtual store” to make the sale.
1.4.2 Transaction forms of E-commerce
The E-commerce transaction takes place between three main groups
involved: business, government and customers. These transactions
took place by using active forms of E-commerce and are conducted
at many different levels: B2C, B2B, B2G, G2C, G2G, G2B, C2C,
and C2G.
1.5. Benefits of E-commerce for businesses
1.5.1. E-commerce reduces costs
E-commerce affects to most major types of business costs in the
production process and conducting commercial transactions,
including: cost of sales, expenses related to procurement of the
enterprise, and expenses related to logistics.
1.5.2. Impact on enterprise architecture
IT and communications to allow businesses can trade and cooperate
or compete with each other at high speed, lower cost and with
amenities never before. With E-commerce, began to appear business
groups linked together by the type of network link, creating division
and rules combined production and completely new business, more
efficient than any real type of unstructured enterprise networking.
1.6. The E-commerce requirements
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1.6.1. Technological Infrastructure.
We just only really have and truly carry out rich content and
effective E-commerce when we have a stable infrastructure of
information technology (including the two divisions: electronic
computing and electronic media).
This infrastructure includes standards of the enterprise and whole
country, linking these standards with the international standards,

engineering and devices.
Technological infrastructure not only means that the existence but
also implies more economic use.
1.6.2. Human Infrastructure.
Application of E-commerce is inevitable raises two requirements: (1)
people are familiar and capable of mastering online activities; (2)
they have strong IT professionals who regular catch new IT to serve
digital economy and E-commerce as well as be able to design
software to meet the operational needs of a digital economy, avoid
relying solely on the others.
1.6.3. Security and safety.
Commercial transactions by electronic is setting up very high
demands on security and safety, especially when it operates on the
Internet/Web.
1.6.4. Automatic Financial payment system.
E-commerce can only be done when there actually exists a
development financial payment system. It allows automatic
payments. Without this system, the E-commerce application is only
exchange the information and transaction still ends with direct
payment or the traditional means of payment.
1.6.5. Consumer Protection.
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In E-commerce, information of goods are digital information, buyers
does not have condition to taste or trial before purchasing goods. It
not mention to the possibility of mistake the database, be deceived by
the information and the illegal organization presence on the network.
Therefore, E-commerce needs an intermediate quality (quality
guarantor) that operate efficiently and less expensive.
1.6.6. Economic and legal infrastructure.
First, each government must decide whether the information society

and Internet are a threat or an opportunity. Each country will issues
the policies, laws and specific regulations that will be reflected in the
corresponding adjustment of the entire system of civil law.
1.7. Definition and content of Trade promotion
1.7.1. Definition:
Base on the Commercial Law 2005 of Vietnam, Trade Promotion
means activities of promoting and seeking opportunities for the
purchase or sale of goods and provision of services, including sale
promotion, commercial advertisement, display and exhibition of
goods and services, and trade fairs and exhibitions.
1.7.2. The purposes of trade promotion
The purposes of trade promotion are supporting businesses to sell out
their products when they face to the competition of others providers
on the market. The main purposes of using trade promotion: Promote
the products consumption, Create competitive advantage for
businesses, and Communicate information about business and
products to consumers.
1.7.3. Types of Trade Promotions
Trade promotion includes some typical models: Promotion,
Commercial advertising, Displaying and introducing goods and
services, and Fairs and exhibitions.
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1.8. Trade Promotion in E-commerce
Trade promotion in E-commerce is the method of using electronic
means to introduce, offer and provide information about the product
or service of producers to consumers and convince them to choose it.
Through the common tools of E-commerce such as Email, Website
etc, the businesses conduct introducing and advertising their product
as well as prestige, reputation of the business, especially building
business’s image, aim to people regularly access the Internet and

using Email.
1.9. The difference of E-commerce applications in agricultural
trade promotion
Most of Vietnam agricultural products have good quality but low
value; added value in every product is lower than other industrial
products. In addition, agricultural products associated with the
majority of small and medium enterprises, they are scattered at the
local and tied to the interests of large producers are farmers.
Therefore, trade promotion activities not only contribute effectively
to find new market for agricultural products, but also contribute to
ensuring social security and rural development.





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CHAPTER 2: BACKGROUND AND REAL SITUATION OF
AGRICULTURAL PRODUCTS PROMOTION OF
AGRITRADE
2.1. Overall assessment of domestic market for Agricultural
product
Vietnam is an agricultural country with many agricultural export
products ranked "top" of the world. However, most agricultural
products produced in our country that is export-oriented, only a tiny
amount for domestic consumption.
According to Mr. Nguyen Xuan Minh, Foreign Trade
University, the most common problems today with the consumption
of agricultural products in the domestic market:
- The selling price is often change (good crop – devalue).

- Profit for producers is low.
- Penetrating to the distribution channels is limited.
- Goods supplies individually.
According to Mr. Le Ba Trinh, Permanent Head of the “Buy
Vietnamese Goods” campaign, promoting the consumption of
agricultural products in the domestic market is not only immediate
solution to cope with current difficulties, but also the solutions to
long-term goals.
2.2. Overall assessment of agricultural trade promotion activity of
Agritrade.
2.2.1. Overview of Trade Promotion Center for Agriculture
(Agritrade)
AGRITRADE is a business organization under the Ministry of
Agriculture and Rural Development, Main functions and
responsibilities are as the focal point of trade promotion of Vietnam
Agriculture.
2.2.2. Agritrade’s main missions:
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Agritrade is responsible for consulting and implementation of
agricultural trade promotion policies. The main functions: Planning
and implementing trade promotion programs for Vietnam
agriculture; Support to policies of MARD about export promotion,
trade development for agricultural products; management and
development e-commerce website; implementation consulting
activities including training and scientific transferring.
2.2.3. Recent years’ Main Activities:
 Organizing various local trade fairs annually.
 Organizing the MARD’s trade promotion activities in
overseas markets
 Coordinating with domestic and foreign organization to

organize the professional events
2.2.4. Overview of agricultural trade promotion activities of
Agritrade
2.2.4.1. Main purposes
To promote agricultural products and local specialties, Agritrade
deploys two main activities:
 Organizing trade promotion program: trade fairs, events,
conferences, seminars, training, market surveys…
 Establishing display area to display, introduce and sale
agricultural products.
2.2.4.2. Customers
As the middle-man, the main customers of Agritrade are
agricultural suppliers and consumers.
2.2.4.3. Operation
To organize trade promotion programs, Agritrade has two
functional departments: Exhibition and Fair Department and Events
14
and Media Department. The main objects of these programs are
farmers, producers and traders in all over the country.
About display area, to manage this activity, Agritrade’s Director
assigns display area to Business department.
2.3. Assessing the impact of external environmental factors to E-
commerce application at Agritrade
2.3.1. Impact of economic environment
In 2010, as reported by the government at the 8th Session of the
Eight National Assembly, Vietnam's economy continues to rebound
quickly from the impact of the global economic crisis. The figure
below shows the improvement in GDP growth in the quarter in 2010.
The growth rate has increased steadily in the quarter: first quarter is
5.83%, second quarter is 6.4%, third quarter is 7.14% and highest in

the fourth quarter (approximately 7.41%).
In the context of reducing budget deficit, but the field of culture
and society is still taking care better, and people's lives improved.
Income per capital per month reaches 1.365 million VND, it
increases up 8.9% (excluding price factor). The Government
continued implements salary reform roadmap and increases
minimum wage from May 1, 2010 and some related policy.
Concurrently, to prevent economic decline, the government has
launched economic stimulus packages totaling about 145 trillion
VND (approximately 9% of GDP), in which “package” supporting
interest loan rates is 17 trillion VND, “package” of tax reduction is
28 trillion VND, “package” of public investment increasing is more
than 90 trillion VND and “package” of social security supplement is
nearly 10 trillion VND.
In Hanoi, GDP growth in 2010 to 11%, more than 1.5 times
compared to 6.7% in 2009, approximately figure 10.9% in 2008 and
11.2% in 2007.
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2.3.2. Impact of political legal environment
Political environment of Vietnam has high stability. The legal
system continuous improves to meet the needs of society, including
the business environment. To facilitate E-commerce development in
Vietnam, in last five years, the state has promulgated a series of
laws, decrees, and circulars instructions to create a favorable legal
framework for E-commerce development.
2.3.3. Impact of socio-cultural environment
Currently, E-commerce application in business is inevitable in
the world and Vietnam. Businessmen are aware of the important role
of E-commerce and tend to apply E-commerce in the operation of
their businesses, as well as dealing with customers and partners.

In Vietnam, in addition to the elements of infrastructure,
payment , psychological and cognitive factors are a barrier to E-
commerce transactions. Most businesses do not have confidence in
the partners as well as themselves when they implement E-commerce
transactions including electronic payment. According to the E-
commerce report of the MoIT in 2009, the social environmental
factors, business practices and awareness of E-commerce still are
two leading E-commerce barriers.
2.3.4. Infrastructure and Internet services for E-commerce
Overall assessment of the environmental infrastructure and
services for E-commerce in Vietnam is also not meeting the demand.
But in recent years the investment and development from
Government create impetus of the growth of E-commerce. To
evaluate the effects of IT infrastructure and Internet service to the E-
commerce application, we will learn about the fact in both objects of
study: enterprises and household.
2.3.5. Competitors
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Previously, people purchase agricultural products in the local
markets and traditional shops. Therefore, companies not interested in
developing strategies as well as investing for E-commerce
applications in the sale and marketing of agricultural products.
However, market and economic changes led to the dramatic changes
in terms of consumption trends. People use the internet to find the
product and suitable providers. Foreseeing this trend, services
providers and manufacturers entered a new field of competition in
the Internet environment.
Currently, there are three trends to promote and sell agricultural
products: Sales of agricultural products in the General E-commerce
websites; the commercial website of separate enterprise; and the

agricultural E-commerce websites.
2.3.6. Customers
Applying E-commerce model in agricultural trade promotion will
create a trading floor for both buyer and seller. The sellers are
producers, traders and even farmers who have agricultural products.
They will sign and become the official member of the E-commerce
website and show their products in their virtual store. The buyers
usually are consumers and other traders. They will sign in the E-
commerce website and find the suitable products. Thus, to make the
E-commerce website operate effectively, Agritrade should focus on
both sellers and buyers and encourage them using this method in
trading agricultural products.
2.3.7. Human resources for E-commerce
According to Nguyen Xuan Phong, Vice Rector of FPT, there are
two different workforces for the different problems. The technical
support workforce that will be provided by the IT industry and the
business workforce will be provided by the economic sector. Each
workforce needs a certain understanding of each other's work.
17
However, if IT workforce is provided fairly well, then the workforce
for marketing and sales of E-commerce, the work needs larger
number of employees, is very limited.
According to VECITA, the E-commerce training was started from 5-
6 years ago with 49 Universities and 28 Colleges in whole country.
However, only some of them well implemented E-commerce training
such as Hanoi University of Commerce, Foreign Trade University,
NEU, Hanoi University of Technology, and HCMC University of
Economics.
2.4. Assessing the impact of internal environmental factors to the
E-Commerce applications in trade promotion activities of

Agritrade
2.4.1. Impact of human resources
Currently, the total numbers of employees of Agritrade are 45, in
which there are 4 masters, 34 bachelors in all subjects, 03 colleges
and four unskilled workers.
To perform trade promotion programs, Board of Director of
Agritrade assigns the specific tasks to two functional Departments:
Exhibition and Events and Media Department. The product
promotion activity that carried out through the display area will be
assigned to Business Department.
At the present, the staff at the IT and Market Research Department is
not enough to develop technical facilities for E-commerce
application and operate this model, so to ensure work efficiency;
Agritrade should recruit more skillful employees.
2.4.2. Impact of financial resources
Deploying E-commerce applications in promoting agricultural
products is an important task of Agritrade; therefore they can get the
support from MARD and others organizations.
2.4.3. Impact of technology infrastructure
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Currently, 100% departments and employees of Agritrade were
equipped with adequate computer system. Computer systems are
regularly upgraded, maintained and managed by specialized
personnel. Besides, Agritrade is also equipped with a consistent LAN
system, wifi system covered whole the building and use the powerful
internet service pack of VNPT and Viettel.
2.5. Analysis the results of survey and discussions
2.5.1. The results of survey
To assess the applicability of E-commerce application on trade
promotion activities in Agritrade, I conducted a survey of Agitrade’s

employees and customers. With the Agritrade’s employees, I focus
on studying current IT infrastructure and ability to meet requirements
of E-commerce application. Moreover, I also learn and evaluate the
real trade promotion activities and the effect of these activities to the
development of Vietnam Agriculture. Regard to Agritrade’s
customer, I focus on both consumer and provider. Via the survey, I
learn about their current method of agricultural purchasing and
evaluate the necessary of E-commerce application in the trade
promotion activities.
2.5.2. Results of expert interviews
I collect the expert questionnaire and try to find the answer for the
following issues: Vietnam's agricultural products market and the
integration requires; market of agricultural products and local
specialties; and the need and ability to apply E-commerce into
trading in agricultural products.




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CHAPTER 3: CONCLUSIONS AND THE PROPOSAL
SOLUTION OF E-COMMERCE DEVELOPMENT FOR
AGRITRADE.

3.1. The conclusions and findings through the research process
3.1.1. The achievements and limitations of Agritrade
3.1.1.1. The achievements of Agritrade
Since establishment in 2003, Agritrade has implemented successful
trade promotion missions and training activities for businesses and
localities. Moreover, Agritrade also performed propaganda

programs, advertising and selling agricultural products and local
specialties. Through these activities, agricultural products from
localities can access market and consumers in major cities.
3.1.1.2. The limitations in Agritrade
Currently, personnel of Agritrade lack of IT and business staffs who
can operate E-commerce website and relevant activities.
About trade promotion events such as fair, exhibition and seminars,
the number of exhibitors increases slowly and most of them still not
recognize the role of trade promotion programs.
Refer to display area, the traditional displaying method causes
difficulties in expanding, enhancing the role of the display area.
3.1.1.3. Causes the achievements and limitations of Agritrade
- The cause of the achievements: receiving the policies and financial
support from MARD; having clear and logical development strategic
and orientation; trade fairs that organized by Agritrade have satisfied
the needs of businesses in the product promoting and market
accessing; staffs of Agritrade have good knowledge; and Exploit
effectively the existing advantage of the Agritrade such as location,
infrastructure.
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- The cause of the limitations of Agritrade: Agricultural businesses
are small and medium enterprises with small capital and their
awareness of the role of trade promotion activities is limited;
agricultural products displaying is a new activity for Agritrade;
salaries and allowances of Agritrade is not high, so it is difficult to
recruit enough good IT staff.
3.1.2. The findings of the research process
Through the survey and interviews with Agritrade’s employees and
customers, I discovered some issues: consumers are trust in the
product and product’s information supplied by Agritrade, but they

need new method to buy agricultural product; the current trade
promotion activities organized by Agritrade create promotion
effective to agricultural business; Agritrade staff itself aware about
the role of E-commerce application.
3.2. Orientation and perspective of development of Agritrade in
the future
3.2.1. Development orientation of Agritrade
3.2.1.1. Vision
Agritrade is strengthening IT applications to serve enterprises,
production, cooperatives, farms and farmers, in the forms of
electronic media, publications and E-commerce.
3.2.1.2. Objectives
Agritrade will develop an E-commerce portal to provide the needed
agricultural information, and events schedule.
E-commerce portal also perform a very important task that is create a
trading floor for manufacturers and agricultural enterprises to deal
with other enterprises and consumers.
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Agritrade gradually develops a database related to information of
agricultural production, products and service to serve for trade
promotion programs.
3.2.2. Agritrade’s views on the E-commerce application
According to Board of Director of Agritrade, the E-commerce
application in the trade promotion activities is appropriate and
necessary.
3.3. Proposal solutions of deploying E-commerce application in
Agritrade
3.3.1. Group of Human Resource solutions
The main department responsible for applying E-commerce in
Agritrade is IT and Market Research Department. Currently, the

personnel of this department are not enough in both quantity and
quality. To prepare personnel for deployment E-commerce model,
Agritrade should immediately complete the needed manpower.
3.3.2. Solutions related to infrastructure and technology
3.3.2.1. Solutions of Infrastructure and information systems
Agritrade need to reassess the ability of infrastructure to operate the
E-commerce website.
Together with the additional investment in infrastructure, Agritrade
need adjustment, redesigning the current information system suitable
for new business processes.
3.3.2.2. Solutions of designing a website for sales
To deploy E-commerce model, Agritrade should develop a separate
website. Interface of this page must be designed rationally towards
ease of use, consistent with the users and steps to perform a function
not too long.
3.3.2.3. Solutions for safety and security
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Based on current E-commerce information system, Agritrade need to
build security barriers and use of technology to ensure safety,
especially information of consumer’s account
Moreover, Agritrade should support customers to secure themselves
the private account and related information.
3.3.3. Solutions related to business processes
3.3.3.1. Solution and processing to orders
Agritrade should draw up a list of products as well as the terms and
policies together with a full, clear and easy to follow. Management
processes of orders implementation must be optimized to minimize
costs to the seller and buyer, and also to control the progress of the
contract, to note the problems arising and settlement efficiency.
3.3.3.2. Solutions of consulting, negotiating and signing contract

online
The website should be designed and secured that the buyer and seller
can negotiate and sign the contract online.
3.3.3.3. Solutions of online payment
Agritrade should develop diverse forms of payment to helps buyers
having more choices. Moreover, Agritrade should pay attention to
the online payment form, because along with the development trend
of E-commerce, electronic payments will also grow, the rate of
customers using this payment method will be increasing when the
weak elements of security and privacy are improvement.
3.3.4. Solutions related to electronic marketing promotion
3.3.4.1. Solutions of Online advertising
Using and exploitation of search engine is very important and
necessary for marketing activity of Agritrade. Besides the use of
advertising on search engines, Agritrade can broadcast the E-
commerce website by Search engine optimization (SEO). It is a