Time’s Running Out: The Urgent Call to Action to Prevent Devastating Consequences

E-commerce retail can “kill” traditional retail

In the corridors of the National Assembly today, October 25, delegate Pham Khanh Phong Lan (Ho Chi Minh City National Assembly Delegation) shared with the press about concerns about e-commerce, the domestic economy, and the manufacturing sector. , to traditional retail chains.

According to the female delegate, Vietnam’s economy, manufacturing sector, and retail chain are facing very strong competition from cheap foreign goods. The rapid growth of e-commerce from other countries is increasingly evident, but we do not have any effective measures to control it.

Delegate Pham Khanh Phong Lan (Ho Chi Minh City National Assembly Delegation)

In fact, the fact that Temu has not registered with Vietnamese authorities but operates transactions and sales in Vietnam is a violation of the law. However, this incident was only handled administratively. Cheap sales tricks, calling on participants to sell at large discounts and unbelievable profits brought great benefits to Temu and the trading floor. originating from China, this can be seen as a way to create a scandal in Vietnam.

Delegate Pham Khanh Phong Lan admitted: “In recent days, the press and social networks have mentioned a lot about Temu. At first I didn’t know what Temu was, but now I found out and took a look.”

People talk a lot about the responsibility of state agencies, including the Ministry of Industry and Trade, to come up with solutions to overcome the situation of low selling prices on this floor. However, currently there is still no truly effective solution.

“We mention this exchange too much without any solution, which is no different than promoting this brand to the public. There is a lot of talk, but state agencies, specifically the Ministry of Industry and Trade, are responsible for providing solutions, but currently there is no effective solution,” delegate Pham Khanh Phong Lan commented.

According to Ms. Lan, in today’s flat world, it is difficult for us to use administrative orders to ban and prevent, but must use synchronous solutions. E-commerce is a world trend, but must be placed within regulations on tax management, healthy competition, goods must ensure quality and protect consumers in cyberspace.

Vietnam’s strong products such as clothing and small and sundry household appliances in the traditional market have had their market share taken over by e-commerce. This is very difficult for manufacturing businesses, when the output is difficult sales, the whole economy only has real estate prices increase, development is not good.

The female delegate said that there are many products on cyberspace that violate counterfeit labels, are of poor quality and do not protect consumer rights.

For example, Ms. Lan said, in the medical field: “I myself don’t know what to say, it’s a headache when it comes to health food and selling medicine online. Not only quality, but also dumping and incredibly cheap prices. Right now it is very difficult, requiring the entire society to participate,” said Ms. Pham Khanh Phong Lan.

According to Delegate Lan’s analysis, e-commerce retail can “kill” traditional retail. But it can change the distribution chain and socio-economics if directed at the right target and managed well.

“Currently, in Ho Chi Minh City, renting retail space to sell goods costs tens of millions/month, but when selling online on the floors, there is no cost, which will help reduce the price of products sold to consumers. people. When e-commerce develops, rental prices will decrease, which can also pull real estate prices down. Because when selling there are no buyers, how can people rent and buy premises anymore? “Ms. Lan affirmed.

Need to act now

Previously, talking to a reporter from VOV Electronic Newspaper, delegate Tran Hoang Ngan (Ho Chi Minh City National Assembly Delegation) also warned that goods that do not pay taxes and massively lower prices sold into Vietnam will affect industries. domestic production, lack of fairness for businesses that comply with legal regulations, especially small and medium-sized enterprises.

Mr. Ngan said that “we must act immediately” to avoid major impacts on domestic production and business activities.

Delegate Tran Hoang Ngan (Ho Chi Minh City National Assembly Delegation)

“We encourage e-commerce but must strictly control it to prevent trade fraud, tax evasion, ensure openness, transparency, and create fairness for domestic production. Besides, it is necessary There are solutions on tariff barriers to protect small domestic manufacturers,” delegate Tran Hoang Ngan emphasized.

In a related development, at the third quarter regular press conference at the Ministry of Industry and Trade on the afternoon of October 23, responding to new developments in the Vietnamese e-commerce market, with the arrival of a series of retail platforms. China such as Temu, Shein, Taobao… Deputy Minister Nguyen Sinh Nhat Tan – spokesman for the Ministry of Industry and Trade said he was also “startled” to see their prices so cheap. However, it is not yet possible to confirm the quality of the product, so specific investigation and research is needed.

“The Ministry of Industry and Trade is implementing a project to combat counterfeit goods and protect consumers in e-commerce until 2025, assigning the General Department of Market Management to control this issue,” Mr. Tan said.

Regarding the impact of e-commerce platforms on the market and other platforms operating in Vietnam, Deputy Minister Nguyen Sinh Nhat Tan said that the Ministry is assigning the Department of E-commerce and Digital Economy to evaluate the impacts. dynamic. When there are results of research and evaluation, the Ministry of Industry and Trade will propose solutions to control the activities of Temu Exchange.