State management of electronic commerce

integrity and confidentiality of information exchanged in e-commerce; (iii) Protection of intellectual property rights in e-commerce; (iv) Consumer protection in e-commerce; (v) Prevention of crime and breaches in e-commerce. 2.2.4.3. Implementation of e-commerce development plans and policies This is the implementation stage of e-commerce development plans and policies in reality. This stage includes: communication and consultancy, implementation of development programs and projects; operation of funds; coordination to implement activities; assurance of operation of support service supply system. 2.2.4.4. Control of e-commerce E-commerce control is a group of activities of the state management agency to promptly detect and handle errors, congestion, disruption, difficulties and obstacles as well as e-commerce development opportunities to ensure that e-commerce activities comply with the set e-commerce development orientations and objectives. Forms of e-commerce controls include: examination, inspection, supervision and state auditing, of which the form of e-commerce examination plays the particularly important role. 2.2.5. State management apparatus of electronic commerce State management apparatus of electronic commerce is a constituent part of the state management apparatus of economy and has relative independence, including State authorities performing the e-commerce management function from central to grassroots levels. State management of e-commerce is implemented at 2 levels: central and grassroots levels. At the central level, state management agency of e-commercial is central state management agencies including the National Assembly, Government, People’s Court. Agencies assisting the Government in performance of state management function of e-commerce are ministries and ministerial-level agencies. With the characteristics of e-commerce as stated above, in order to manage e- commerce activities, it is very necessary to have the participation of many management agencies with different management functions including: state management authorities of commerce; state management agency of IT and communication, network safety, security; state management agency of payment technology infrastructure in e-commerce. At the grassroots level: People’s Committees at all levels perform the state management of e-commerce in the local scope as assigned by the Government. Department of Industry and Trade is a consulting agency, directly supporting People’s Committee to perform the state management of e-commerce in the local scope. 2.2.6. Factors affecting the state management of electronic commerce include human resources of state management authorities of e-commerce, level of IT application in state management authorities; international commitments in e- commerce development; e-commerce development trend in the world. 2.2.7. Assessment of state management of e-commerce The thesis uses four assessment criteria of the SM of e-commerce, including efficiency, effectiveness, conformity and sustainability. Table 2.1. Assessment criteria of the SM of e-commerce Criterion Assessment indicators EFFICIENCY 1 Awareness level of enterprises and society about e-commerce. 2 Support level of e-commerce application for enterprises of state management authorities. 3 Consumer protection level in e-commercetransactions. 4 Appropriate and favorable level of payment formsin e-commerce. 5 Appropriate and sufficient level of e-commerce standards promulgated by state management agency. 6 Demand satisfaction level of e-commerce humanresources in enterprise’s activities. 7 Satisfaction level of information technologyinfrastructure for e-commerce development. 8 Completion level of objectives stated in e- commerce strategies and development plan. EFFECTIVENESS 1 Popularity of e-commerce in the economy.2 Benefits of e-commerce for enterprises. CONFORMITY 1 Conformity of the law system on e-commerce with e-commerce applications in enterprises. 2 Conformity of objectives in e-commerce development plan with e-commerce application in enterprises. 3 Conformity of e-commerce policies in Vietnam with international practices. SUSTAINABILITY 1 Connection between e-commerce development policies with other socio-economic development policies of the country. 2 Level of socio-economic development promotion in general and enterprise development promotion in particular. 3 Level of impacts of e-commerce developmentpolicies on e-commerce application in enterprises. 2.3. International experience in state management of e-commerce Firstly, elaboration of e-commerce development strategy. In countries with developed e-commerce such as the United States, Korea, Singapore, in order to support the development of national e-commerce, the governments always focuses on the elaboration of national e-commerce development strategies with long-term oriented objectives. National e-commerce development strategies are elaborated independently of other socio-economic development strategies of the country. Secondly, elaboration and promulgation of policies and laws on e-commerce. For elaboration of legal framework for the e-commerce development: the governments particularly focus on construction and creation of a favorable legal environment for e-commerce. In order to promote e-commerce, countries must elaborate a specific legal framework. This legal framework will be applied to regulate commercial activities in general and e-commerce transactions in particular for both consumption and business purposes. The governments elaborate legal frameworks for the problems being considered as obstacles and legal difficulties for e-commerce development. For construction and development of infrastructure for e-commerce development: The governments of countries play an important role in development of infrastructure for e-commerce development, and particularly focus on IT, payment and human resources infrastructure. Thirdly, implementation of e-commerce development strategies, plans and policies: during the deployment process of e-commerce, the governments of countries often build centers to support e-commerce deployment of enterprises. The mission of these centers is to find the most modern and suitable e-commerce model to apply and deploy in enterprises of the countries. CHAPTER 3 ACTUAL STATUS ANALYSIS OF STATE MANAGEMENT OF ELECTRONIC COMMERCE IN VIETNAM 3.1. Actual status of electronic commerce development in Vietnam 3.1.1. Period of E-commerce formation and official recognition by law This is considered a premise period of E-commerce application in Vietnam’s enterprises. In this period, the environment for E-commerce development was just formed in Vietnam, and some enterprises were initially aware of the great role in applying E-commerce in production and business activities and started to apply E- commerce at different levels. 3.1.2. Drastic development period of E-commerce in Vietnam Following successful applications of E-commerce in enterprises, since 2006, E- commerce in Vietnam has had such drastic progresses as: E-commerce has been extensively applied in numerous enterprises, online shopping habits have been gradually formed by consumers, E-commerce has been socially and commercially accepted as a new business line, bringing numerous benefits to not only consumers but also enterprises. 3.2. Actual status of E-commerce state management 3.2.1. Elaboration of E-commerce development plan E-commerce development plan is one part of country’s socio-economic development plan. The current system of E-commerce development plans includes: national E-commerce development plan and local E-commerce development plan. 3.2.1.1. National E-commerce development plan The overall E-commerce development plan in the 2006-2010 period puts forth the following E-commerce development objectives: (i) E-commerce development contributes to promoting trade and improving competitiveness of enterprises in the context of Vietnam’s increasingly wide and deep integration in to the world economy; (ii) The State plays an important role in creating favorable legal environment and policy mechanism to attract advanced technologies and encourage enterprises to apply E-commerce; providing public services to support E-commerce activities. (iii) E-commerce development needs to be closely associated with application and development of IT and communication; (iv) Review, supplementation and amendment of legal normative documents to ensure the whole legal system is commonly oriented in supporting, facilitating E- commerce development. The overall E-commerce development plan in the 2011-2015 period with the general objective as: “E-commerce will be commonly used and achieve the advanced level in countries of the Association of Southeast Asian Nations (ASEAN), contributing to competiveness improvement of enterprises and nations, and promoting national industrialization and modernization” 3.2.1.2. E-commerce development plans of localities By the end of October 2011, implementing Decision No.1073/QD-TTg of the Prime Minister, 56 provinces and cities under central agency elaborated and promulgated their next five-year E-commerce development plans. 3.2.2. Elaboration of policies and promulgation of laws on E-commerce 3.2.2.1. E-commerce development policies Business people policy: defines conditions, procedures when registering establishment of E-commerce websites; rights and duties of business people when participating in E-commerce; Acts of business people prohibited in E-commerce activities. Consumer protection policy in E-commerce: For the past time, consumer protection policies in E-commerce have mainly concentrated on 2 specific aspects such as protection of consumer’s personal information and protection of consumer’s rights in their contract commitment process via E-commerce websites. The protection of consumer’s personal information in E-commerce transactions includes managing and using consumer’s personal information in E-commerce, avoiding junk emails and managing commercial advertisement emails and handling personal information crimes in E-commerce. Consumer protection in contract commitment process via E-commerce websites includes: focusing on adjustment of information supply and contract commitment in electronic environment to narrow the gaps of information inequality for consumers and improve transparency of E-commerce environment. Tax policy in E-commerce: determines taxpayers; ratepayers; and tax management Policies on E-commerce human resources training and development: these policies include E-commerce training for State management and enterprise community officers; full-time E-commerce training in colleges and universities: according to results surveyed by Vietnam E-Commerce and Information Technology Agency in 2008, 2010 and 2012, there were 88 colleges and universities including 52 universities and 36 colleges which implemented E-commerce training activities by the end of 2012. Until the end of 2012, Ministry of Education and Training did not announce the framework curriculum for E-commerce and there was no separate subject code in the list of level 4 subject codes of Ministry of Education and Training. Policies on E-commerce Technology Infrastructure Development: The public IT & Communication Infrastructure has been developing drastically in Vietnam; national modern information network covers the entire country, connecting with almost all countries in the region and the world. By the end of December 2012, the number of people with Internet access reached 31.3 million in Vietnam, accounting for 35.3% per 100 people. The number of immobile broadband Internet subscribers reached 4.87 million; the percentage of families has computers per 100 families attained 18.8%. Electronic payment infrastructure: the development of payment card market is the important key, creating a premise for modern payment service execution with the application of IT and E-commerce. Bank cards have been a common means of payment with dramatic development rate. By the end of June 2012, the number of issued bank cards reached 47.22 million, of which debit cards accounted for 94%. The infrastructure for card payment has been significantly improved with 13,920 ATM machines and 89,957 POS machines which were installed nationwide. 3.2.2.2. Elaboration and promulgation of E-commerce law. Regulations related to electronic transaction in the system of civil-commercial legal documents: Civil and Commercial laws have recognized the legal validity of electronic transaction by acknowledgement of data message – a specific performance mode of electronic transaction. Regulations on electronic transaction and IT: legal framework of electronic transaction in general and E-commerce in particular is divided into 2 main pillars, including Law on Electronic Transactions and IT Law, 8 decrees guiding Law together with a host of circulars detailing particular aspects of electronic transaction in each specific application area. Regulations on tax and accounting include regulations on electronic documents, invoices; and tax collection in E-commerce. Regulations on sanctions and handling of violations: sanctions against acts of violation are divided into 2 types: administrative penalty and criminal penalty. Inadequacies in current E-commerce law in Vietnam: (i) Management, supply and usage of Internet service and electronic information on the Internet still have many inadequacies without keeping pace with new trends of E-commerce. (ii) Regulations on consumer protection in E-commerce still have many limitations (iii) Licensing and management of post-licensing for websites providing E- commerce trading floor services operate quite loosely. (iv) Legal validity of electronic documents has not clearly defined. 3.2.3. Organization of E-commerce development plan implementation 3.2.3.1. Communication and consultancy: Changing and raising awareness about E-commerce is a process which requires participation of all social classes, of which enterprises and mass media play an important role. These are considered the two most dynamic and sensitive groups to grasp new social trends. During the last 5 years, communication activities on E- commerce have been taking place effervescently thanks to proactive and positive participation of these 2 groups. 3.2.3.2. Implementation of programs and projects During 2006-2007 period, Vietnam E-Commerce and Information Technology Agency conducted development and implementation of 6 large programs including: Program on E-commerce dissemination, propaganda and training; Program on E-commerce legal system development and completion with objectives; Program on online provision of public services for E-commerce applications in procurement of the Government; Program on E-commerce support technology development; Program on law execution relating to E-commerce; Program on E-commerce international cooperation. Each program was concretized in numerous projects with specific goals and duties assigned for each execution office. After 5 years of execution, almost all above programs were completed. Since 2012, to execute the overall E-commerce development plan in the 2011- 2015 period, Vietnam E-commerce and Information Technology Agency has cooperated with Vietnam E-commerce Union in introducing E-business index (EBI) to assess E-commerce application in the whole country as well as in provinces and cities under central agency. 3.2.3.3. Cooperation for performance Recently, Ministry of Industry and Trade (MOIT), known as a State Management agency of E-commerce has carried out E-commerce development projects and programs in cooperation with other Ministries and Branches. Specifically, MOIT has cooperated with Ministry of Justice to perfect E-commerce legal framework; MOIT has also cooperated with Ministry of Education and Training, Ministry of Labor, Invalids and Social Affairs, Vietnam’s communications agencies in training, propagandizing and disseminating knowledge about E-commerce; and cooperated with Ministry of Science and Technology, and the State Bank of Vietnam in building E-commerce support technology development programs, etc. The cooperation achievements are considered an initial step in establishing a relatively perfect environment for E-commerce development. Apart from the cooperation with Ministries and Branches to establish an E- commerce development environment, State management authorities have recently paid special attention to the international cooperation in E-commerce, including bilateral and multilateral cooperation. 3.2.3.4. Development of Support Service System E-commerce support services include: digital signature certification (digital certification), electronic payment, online public services of State management authorities, Ministries and Branches. Digital signature certification service, estimated by end of 2012, includes 9 providers: FPT IS, VDC (VNPT), Nacencom Card Technology Company, Bkav, Viettel, CK Technology-Communication., Jsc, Newtel-ca Company, Safe CA Company and Vina Company. Digital Certification provided by those companies offered an optimal condition for digital signature application to E-commerce activity by enterprises and organizations. Electronic payment service: Bank system is now providing such several popular electronic payment services as: Internet banking; Mobile Banking; intermediate payment service with application of digital payment such as financial switching, electronic payment gateway, and digital wallet service. Online public service: in 2012, 48 provinces and cities under central agency provided online public service at level 3 and 4, accounting for 76% of total provinces and cities. 3.2.4. E-commerce examination and inspection Examination and inspection tools: Inspection on electronic information in general and E-commerce in particular has been considered a relatively new activity in Vietnam. State Management authorities have initially composed legal bases for carrying out these inspection activities. E-commerce examination and inspection activities: as E-commerce activities are carried out in an electronic environment, the supervision of legal normative document implementation inside this area is considered a big challenge for State Management offices. Supervision, examination and inspection activities have only been inspection of information content supply in Electronic Information website pages and examination of conformity level with Circular No. 09/2008/TT-BCT of several typical E-commerce websites. 3.3. State management apparatus of E-commerce in Vietnam 3.3.1. Central level State management apparatus of E-commerce * Line agency performing State Management function of E-commerce Pursuant to State Management functions and duties assigned by the Government, at Central level, Ministry of Industry and Trade is assigned duties to perform the State management function of E-commerce. In Ministry of Industry and Trade, the agency directly assisting Minister to perform the State management function of E- commerce is Vietnam E-Commerce and Information Technology Agency. * Agencies participating in performing the State management function of E- commerce. Apart from Ministry of Industry and Trade, other Central level agencies participating in performing State management functions related to E-commerce include: Ministry of Information and Communications; the State Bank of Vietnam; Ministry of Education and Training; Ministry of Public Security. During the process of performing the State management function of E-commerce, it is illustrated that many of the E-commerce areas have not been mentioned in the State management duties of E-commerce of State management agencies or there has been no transparent and specific regulation on State management duties of E- commerce in these agencies. The shortcomings of these management duties are demonstrated in these following contents: Firstly, State management duties of electronic payment in E-commerce have not been regulated in detail while electronic payment is a key to the success of E- commerce. In E-commerce, Banks are an intermediate agency of electronic payments. Such popular electronic payment modes as card, POS, Internet Banking, Mobile Banking, Digital Wallet…are certificated by the State Bank, besides, intermediate payment organizations/individuals also have to satisfy all requirements regulated by the State Bank and law. However, now such duties as electronic payment examination and supervision; safety and security in electronic payment; examination, supervision of defrauds and fakes in electronic payment have not been specifically regulated within the State Bank’s Management functions. Secondly, no particular unit is authorized for electronic market management duties in the Internet environment by Ministry of Industry and Trade which are similar to the duties in the traditional commerce by the Market Management Agency of Ministry of Industry and Trade. Thirdly E-commerce specialty inspection activities have not been assigned for any particular unit. Currently, only inspection agency of Ministry of Information and Communications performs State management function of inspection in several areas related to E-commerce such as: telecommunication and Internet; IT, electronics, and national communication information infrastructure. Duties of E-commerce examination, supervision remain obfuscate and ineffective owing to having no E- commerce specialty inspection agency. Fourthly, State management responsibilities for eliminating frauds and fakes in E- commerce have not been specifically regulated yet. Currently, Hi-Tech Criminal Safeguard Police Agency of Ministry of Public Security is responsible for Hi-Tech criminal safeguard; however, no transparent regulation on criminals in E-commerce has been set. Fifthly, the cooperation in performing State management function of E-commerce among State Management agencies is not effective, especially there are many restrictions in the participant management cooperation between Ministry of Industry and Trade and Ministry of Information and Communications. 3.3.2. Local level State management apparatus of E-commerce At local level: People’s committees at different levels perform the State Management of E-commerce within their local scope in accordance with decentralization of the Government. Department of Industry and Trade is the counseling agency, directly assisting People’s Committee in performing the State Management of E-commerce with the local scope. 3.4. Assessment of E-commerce state management in Vietnam The thesis includes a set of indicators which are correspondent with 4 criteria: efficiency, effectiveness, compliance and sustainability which are used for assessment of E-commerce State management content. Assessing specific indicators in each of the criteria showed the results and inadequacies in State management of E-commerce as follows: 3.4.1. Results Firstly, in terms of E-commerce development strategy and plan design: E- commerce State management offices have recently made great efforts in making E- commerce development plan, in which the overall E-commerce development plan in the 2006-2010 period (Decision No. 222) is regarded as an initially orientated plan of State management agencies for E-commerce development in Vietnam. Thanks to State management agencies’ sound orientations and policies, enterprises have effectively conducted and applied E-commerce to their production and business activities; E-commerce has been a more significant application in enterprises’ activities; E-commerce has had a lot of great contributions to enterprises’ reputation broadcasting, investment promotion, and international cooperation improvement. Thanks to State management agencies’ assistance, more and more enterprises are applying E-commerce modes at various levels, forming new effective business modes. Secondly, in terms of E-commerce policy elaboration and law promulgation: State management agencies of E-commerce have recently made considerably efforts in establishing E-commerce development policies; a lot of policies like E-commerce technology infrastructure development, E-commerce human resource development policies have achieved certain successes. The legal framework of E-commerce activities has been gradually formed after 5 years of implementing the overall E-commerce development plan in the 2006-2010 period thanks to management agencies’ efforts. Three basic adjustment laws of E- commerce activities includes electronic transaction, IT law and Telecommunication law which offer great basis for Ministries and Branches to enact documents under adjustment law of specific E-commerce areas. E-commerce legal system has been adjusted step-by-step to be coherent with not only E-commerce international legal system but also Vietnam’s commitments with international community in the economic development process. The E-commerce legal system has offered basic legal basis for State management agencies to do their activities; this is a basis for Enterprises’ E-commerce application and execution in their production and business activities; creating consumer’s belief in E-commerce transaction participation. Thirdly, in terms of E-commerce development plan execution: to conduct the overall E-commerce development plan in the 2006-2010 period, State Management agencies had conducted numerous programs and projects to support enterprises’ E- commerce application and step-by-step perfecting effective E-commerce development environment. In E-commerce development plan execution, a lot of enterprises had been technologically consulted and supported for selecting suitable E-commerce mode in time thanks to the E-commerce State management agencies’ timely guidance, especially direct guidance from Vietnam E-commerce and Information Technology Agency. Fourthly, certain results have been initially achieved from E-commerce inspection and examination activities. Thanks to these activities, enterprises have shown their better behavior in E-commerce law adherence, and consumers have shown partial belief in E-commerce transaction activities. 3.4.2. Outstanding issues in State management of E-commerce Firstly, in terms of elaborating strategy system and development plan for E- commerce: Only periodic E-commerce development plans (2006-2010 and 2011- 2015) have been made without national E-commerce development strategy construction. Secondly, in terms of E-commerce policy elaboration and law promulgation: E- commerce legal documents are general, there are no documents for adjusting practical areas of E-commerce to be coherent with socially diverse applications of E- commerce, lack of regulations such as: E-commerce is not set in business area system; lack of specific regulations on E-commerce transaction dispute treatment; lack of specific regulations on consumer protection in E-commerce transactions, there is no certification to the validity of electronic evidence; there is no regulation on enterprise’s digital signature which is the same as an enterprise’s representative’s chop or signature; a lack of assisting and promoting policies for enterprises’ E- commerce application; lack of moderate attention to E-commerce human resources training, etc. Just these restrictions result in serious challenges for E-commerce conducting process. Thirdly, in terms of E-commerce development plan execution: Activities of E- commerce communication, generalization have recently mainly concentrated on encouraging and mobilizing E-commerce application without focusing on legal education. E-commerce legal education activities have not been organized much. Cooperation among Ministries, Branches from central to grassroots levels was not close enough. Fourthly, E-commerce supervision, examination and inspection activities are considerably restricted. Inspection resources are incomplete, specialty inspection and examination activities are low at both frequency and effectiveness, there is no online supervision mechanism for E-commerce activities in electronic environment; and there is no E-commerce specialty inspector; many regulations on E-commerce infringement sanction rate are not serious enough for creating deterrence, and good compliance in society. Reasons for outstanding issues in State management of E-commerce Due to no border characteristic of E-commerce: information globalization trend is enfacing limits to business and culture space. Cross-border E-commerce also belongs to that trend and will become a trend attended by enterprises, consumers and State management offices. A lot of new problems arisen for cross-border transactions such as: tax management, electronic payment, delivery and receiving in cross-border E-commerce transactions; all of them have not yet been specifically and transparently regulated in Vietnam’s E-commerce law system. Restrictions of E-commerce State management human resources: As E-commerce is a new area, there are currently few units providing E-commerce specialty training, leading to considerable influences on the quality of E-commerce human resources of the State management offices from Central to local levels with profession, management capability and skills, practical experience v.v. therefore, resulting in influences on E-commerce State management. Enterprises and people’s law compliance is not good enough. One of the important reasons for the low effectiveness in E-commerce law proceeding is the enterprises and people’s not attending to relevant regulations, leading to bad behavior in law proceedings. The continuous increase in types of Internet criminals has caused E-commerce to be at great risks, and badly affected the E-commerce State management activities. Internet criminals’ activities are getting more and more sophisticated, professional and organized, resulting in a lot of challenges for E-commerce State Management. Legal regulations are always more outdated than changes in online business environment. Despite numerous modifications and complements in legal regulations, modifications in legal regulations especially regulations of Criminal law and Criminal proceeding law cannot be made at once. . The rate of IT application and online public service supply by State Management remains low. CHAPTER 4 SOME MAIN SOLUTIONS TO COMPLETE STATE MANAGEMENT OF ELECTRONIC COMMERCE IN VIETNAM 4.1. Vietnam’s national E-commerce development prospects and global E- commerce development trend. 4.1.1. Vietnam’s national E-commerce development prospects Prospects from international economy integration process: In the integration trend, Vietnam has been carrying out WTO’s engagements on E-commerce, positively participating in ASEAN’s engagements on E-commerce, participating in E-commerce development activities in the framework of Asia- Pacific Economic Cooperation (APEC) Forum. In the future, Vietnam is participating in deeper engagements on E-commerce via negotiating, signing and joining Free Trade Agreement (FTA). One of the important integration channels we are now joining is to negotiate for joining Trans Pacific Partnership Agreement (TPP). Participating in TPP will offer good conditions and chances for Vietnam’s domestic E-commerce development. Optimal conditions for domestic E-commerce development: Young education and world’s top ranking Internet development rate are great potentials for E-commerce development in Vietnam. Changes in IT & Communication Infrastructure are getting more and more modern, satisfying most technological requirements for the effective development of E-commerce. Modern payment technologies are being actively developed for aiding E-commerce payment modes by banks. Many internal enterprises have identified significance and benefits of E-commerce and made courageous investment in this area which they consider their official goods purchasing, selling and exchanging channels. By determining the important roles of E-commerce in national economy development, State management offices have had development strategy orientations for this area. 4.1.2. Global E-commerce development trend The mushroomed development of Internet becomes a motivation for global level E-commerce growth promotion. Globally, quantity of Internet users reached 2.5 billion people (www.internetworldstats.com) by June 2012. According to a prediction of Forester Research, the number of global Internet users will increase to 3.8 billion by 2015. This extremely robust growth in the Internet users is creating great chance for a drastic development of the global E-commerce. Forrester predicted that the global E-commerce turnover will rise about 19.4% per year and will rise to $1,260 billion by 2015. 4.2. Viewpoint on completing State management of E-commerce The E-commerce development needs be carried out in the compliance with market mechanism, and in the combination with State’s active actions. E-commerce development is based on international cooperation improvement and needs to be coherent with regional and international integration progress. E-commerce development strategy needs to be coherent and closely cooperative with contents of socio-economic development strategy. 4.3. Some main solutions to complete State management of E-commerce in Vietnam 4.3.1. Elaboration of national E-commerce development strategy For a thorough, uniform and effective development of E-commerce, it is necessary to build a national E-commerce development strategy. This national strategy must guarantee for the orientation, generality, flexibility, scientism and practicality. 4.3.2. Completion of E-commerce development policy 4.3.2.1. Business people policy completion: to complete business people policy, it is necessary to: certifify that E-commerce is a trade area provided with particular register code; Perfect regulations on establishment register and information proclamation in E-commerce website; offer management solutions to E-commerce exchanges 4.3.2.2. E-commerce tax policy completion: Type of sale and service taxes in E- commerce must be the same as those in traditional commerce with the same tax rate in order to vouch for an equal competition, excluding favor and stimulation activities regulated by the State in each period; responsibilities of both internal and external suppliers must be equal; E-commerce containing foreign factors must be taxed in application of bilateral agreements and international commitments to tax participated by Vietnam; it’s necessary setting a legal cooperation mechanism between tax offices and E-commerce infrastructure service suppliers especially Internet and payment service suppliers; establishing a specialized and responsible group of inspecting and examining business enterprises, therefore, establish Hi-tech tax evasion resistance centers under control of tax management offices in big cities. 4.3.2.3. Consumer protection policy completion Offer optimal conditions for organizations and individuals to actively participate in E-commerce consumer’s right protection; Stimulate enterprises’ application and development of advanced information security guaranteeing technology in E-commerce execution process; Regularly and synchronously carry out solutions to management, supervision of E-commerce applying enterprises’ complying consumer protection law, and E- commerce law Utilize any resource to increase material facility investment, to develop human resources for offices, to implement consumer’s right protection in general; regularly promote consultancy, assistance, communication, generalization, and guidance of knowledge to consumers as they participate in E-commerce; International cooperation in consumer’s right protection implementation includes: trans-national information sharing; trans-national investigation cooperation; trans- national enforcement aid execution; compensation withdrawal for trans-national consumers; participation in global consumer protection organizations. 4.3.2.4. E-commerce human resources development E-commerce regular training promotion: Ministry of Education and Training need to certify E-commerce as an official subject within national education system at once. Also, the Ministry should study, build and introduce framed curriculum of E-commerce training in universities, colleges and occupational schools specialized in economy-commerce. The Ministry should encourage universities and colleges to teach E-commerce, establish E-commerce subject lecturer group or Department, cooperation with reputed foreign universities in teaching E-commerce. The Ministry should promote interaction among universities about E-commerce teaching methods, course outline, and lecturers. The Ministry should combine training with enterprises’ business activities, maintain that students are trained in correspondence with enterprises and society’s needs; the Ministry should carry out teaching of E- commerce application skills in occupational schools. E-commerce training promotion based on social needs: forming close cooperation among training places and research offices and enterprises. E-commerce is developed in close combination of research, creativity and practice. Promoting close association between training places and enterprises in E-commerce human resource training, regularly organizing meeting and cooperating seminars, conferences for training places and enterprises to suggest quantitative, qualitative and skillful requirements by which training places will offer eligible training based on those requirements. Encouraging enterprises’ own training center establishment to satisfy the social needs. Online training application to E-commerce training: Encourage organizations to develop and invest in E-commerce online training Technology and development; associate, cooperate among universities, enterprises and State management offices in designing online content, course outline for E-commerce online training; suggest aiding solution to relevant parties to quickly promote E-commerce online training mode for small and medium-size enterprises including generalizing and communicating about benefits of online training, capital support and tax favor. International cooperation enhancement in E-commerce training: Enhance international cooperation activities, advanced training program transfer, specialist interaction. Universities need do their own researches, organize specialist interaction and refer to E-commerce training programs from famous universities in the world, therefore, improve training content to be coherent with teaching reality in Vietnam. 4.3.3. E-commerce law completion 4.3.3.1. Promulgation of legal normative documents on electronic evidence’s validity regulation. To establish evidence in electronic transactions in general and E-commerce transactions in particular, it is necessary to supplement a new type of evidence called Electronic evidence. It is necessary having particular regulations on criminal proceeding procedures for electronic evidence collection, storage, recovering and verification as well as technical solutions to the use of electronic evidence for crime demonstration evidence. It is also necessary to supplement, modify, exanimate, withdraw evidence and electronic evidence. 4.3.3.2. Promulgation of legal normative documents related to approval of electronic voucher’s validity. Legal normative documents approve the validity of electronic accounting vouchers when the vouchers satisfy specific criteria for assisting enterprises perform their tax responsibilities and accounting professions as doing their goods or service online sale activities. Legal normative documents approve the validity of dossiers, forms, certificates in the form of electronic vouchers if they satisfy specific criteria for assisting partial or full procedure of business register, investment register, and purchase tender via electronic means Legal normative documents approve the validity of sale and service supply vouchers and contracts, other electronic-voucher-formed permits or certificates when satisfying specific criteria which offer convenient conditions for international trade and non-paper trade performance. 4.3.3.3. Consumer protection law completion in E-commerce It’s necessary to maintain supplementing, perfecting regulations on consumer protection in E-commerce with following contents: regulations on responsibilities for consumer’s personal information protection, collection and usage in E-commerce participation process; regulations on settlement of disputes related to commitment contracts in E-commerce website; regulations on supplementing regulations on dispute settlement methods. 4.3.3.4. Cross-border service supply and management regulation completion Regulations on cross-border service supply and usage completed include: Regulations on responsibilities and duties of foreign organizations and enterprises that supply cross-border information; regulations on responsibilities and duties of Vietnamese organizations and individuals participating in cross-border electronic transactions. To avoid the national tax loss, it is necessary to set closer regulations on via-bank payments for cross-border E-commerce transactions. Accordingly, before transferring money abroad, organizations and individuals have to send their approval documents to banks to report on having completed their cross-border E- commerce tax duty and banks will only base on the internal tax completion approval to make money transfer. 4.3.4. Organization of E-commerce development plan implementation This includes improving the effectiveness of E-commerce knowledge communication and generalization; design and conduct E-commerce development programs; promote international cooperation in E-commerce. 4.3.5. E-commerce inspection and examination activity completion Establish E-commerce specialty inspection: it’s necessary in the coming time to quickly establish E-commerce inspector Board directly under the inspector Board of Ministry of Industry and Trade for direct E-commerce specialty inspection execution. At local level, it’s necessary for a tense establishment of E-commerce specialized department directly under Department of Industry and Trade, which is directly responsible for examination and supervision of local E-commerce activities. E-commerce inspection stimulation: stimulate inspection activities; enhance E- commerce inspection frequency 4.3.6. State management apparatus of E-commerce The Central level State management apparatus needs to regulate specific State management duties and functions in E-commerce for State management offices. According to current regulations, Ministry of Industry and Trade is assigned for E- commerce state management functions by the Central Government. Besides, for State management function execution, Ministry of Industry and Trade has to cooperate with such other Ministries as Ministry of Information and Communications; Ministry of Justice; State Bank of Vietnam; Ministry of Public Security; Ministry of Education and Training. Duties and functions of each Ministry need to be transparently regulated by State Management duty in E-commerce State management function execution process in order to eliminate functional overlaps and shortages. Local level State management apparatus needs to regulate transparent functions, duties and organizational structure of Department of Industry and Trade and District-level Division of Economy (or Division of Industry and Trade) in E- commerce State Management function performance process. 4.4. Main Conditions for implementing solution to complete State management of E-commerce. 4.4.1. For State management agencies: It is necessary to establish transparent regulations on functions and duties of E-commerce State management agencies; Stimulate IT application in State Management agencies, promote progress of constructing an electronic Government and electronic society; Guarantee information security for national IT infrastructure; continue developing and completing national telecommunication and IT infrastructure; Improve Central and local level State management capacity of E-commerce 4.4.2. For enterprises and consumers Enterprises need to increase their E-commerce applications for business effectiveness improvement; promote E-commerce human resource training; Improve E-commerce legal compliance behavior; promote cooperation with agency offices in training, communication, generalization, and application of E-commerce to production and business activities. For consumers: Consumers need to be more forceful for Internet shopping as well as universalizing and encouraging their relatives and friends to participate in this shopping mode. Also, to optimize the benefits in online sale transaction, consumers need to get basic knowledge about E-commerce such as relevant regulations on consumer’s right protection, skills for Internet searching and comparing, skills for assessing website and information reliability, v.v. GENERAL CONCLUSIONS As E-commerce as well as State management of E-commerce is a fairly new area in Vietnam, there have not yet been many studies of theory and reality in this area. Theoretical and practical basis studies and learning of State management of E- commerce will have considerable contributions to State management of E-commerce completion, creating a basis for State management activities of E-commerce. The thesis content as: “State management of E-commerce” has partially satisfied the needs of theory and reality in State management of E-commerce”. Owing to the constraints of research extent, the thesis has some following conclusions: Firstly, the thesis systemized basic theoretical issues of state management for E- commerce such as concepts, objectives, principles and contents of E-commerce State management which have not been mentioned by any previous studies. Secondly, the thesis summarized several experience in E-commerce State management in E-commerce developing countries. Thanks to countries’ experience, the thesis drew some of lessons learnt which are beneficial for Vietnam’s E- commerce state management. Thirdly, the thesis analyzed actual status of Vietnam’s E-commerce State management in the recent period by the scientific use of research methods. The thesis composed a set of criteria for evaluating contents of E-commerce State management. Through these criteria; the thesis evaluated the performance of E- commerce State management contents and therefore, illustrate achievements, problems needed to be solved in E-commerce State management. Fourthly, the thesis suggested several solutions, proposals and core conditions for carrying out these solutions with State management offices, core solutions consist of: (i) Building national E-commerce development strategies to create long-term orientation for E-commerce development in Vietnam. (ii) Completing E-commerce policies such as merchant policies; E-commerce tax policies; consumer protection policies; human resource supply policies (iii) Completing E-commerce law focusing on following contents: Approving E- commerce as a trade in the national economic trade system; transparently regulating duties and rights of E-commerce participating parties for newly arisen E-commerce modes; perfecting cross-border E-commerce regulations; approving the validity of electronic evidences; perfecting dispute settlement regulations in E-commerce. (iv) Promoting E-commerce training activities, approving E-commerce as an official subject in the national education system (v) Promoting E-commerce inspection and examination activities, establishing E- commerce specialty inspector board Owing to wide and large research content and thesis scope and restricted knowledge of research students, shortcomings are unavoidable; therefore research students are kindly looking forward to receiving contributions and supports from scientists, lecturers and readers interested in the thesis topic for them to perfect their study. To sum up, research students would send their sincere thanks to Teacher, Prof. Dr.Sc. Le Du Phong for his profound scientific guide; and for a optimally scientific and convenient research environment awarded to Teachers from Post-graduate Institute and Department of Management science. The author is faithfully grateful to Ministry of Industry and Trade, Ministry of Information and Communications as well as enterprises for offering optimal conditions for the author to carry out his investigation and collect data for thesis topic contents. The author also sends his gratefulness to his family and colleagues for their assistantship in thesis topic completion process. -28- LIST OF AUTHOR’S PUBLISHED RESEARCH WORKS 1. Dao Anh Tuan (2011), Personal Data protection in E-commerce transactions and suggestions to Vietnam, Journal of Asia-Pacific Economy, No 345, November 2011 . ISSN-0868-3808. 2. Dao Anh Tuan (2011), New trend in E-commerce and suggestions to Vietnam’s enterprises, Journal of Asia-Pacific Economy, No 346, November 2011 . ISSN-0868-3808. 3. Dao Anh Tuan (2007), Several State’s Current E-commerce management tools in Vietnam, Journal of Asia-Pacific Economy, No 13, March 2007. ISSN-0868-3808.