Viet Nam News

VN sharing economy to take off Bình Thuanä businesses protest beach erosion

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HAØ NOIÄ — Vietä Nam is positioned to take advantage of the growing opportunit­ies presented by the sharing economy, said Rebecca Bryant, Australian Embassy Charge D’Affaire at the conference on the sharing economy held in Haø Noiä yesterday.

“With a well-educated and young population and almost 70 per cent of people owning a smart-phone, Vieät Nam’s economy stands to benefit significan­tly from these developing technologi­es,” Bryant said.

She said that one of the greatest changes of recent years had been the developmen­t of the sharing economy. The sharing economy is estimated to grow from US$14 billion in 2014 to $335 billion by 2025, increasing by 22 times within 10 years.

“So while the sharing economy is still in its infancy at the moment, it will inevitably become a major part of the economy – both at a national and global level,” she noted.

Nguyeãn Thò Tueä Anh, deputy director of the Central Institute for Economic Management (CIEM) agreed, saying the nature of the sharing economy is a new business model which takes advantage of digital technologi­es, thus reducing transactio­n costs and accessing a big number of customers through digital foundation.

The sharing economy is different from the traditiona­l model as all transactio­ns have been implemente­d online by a third party. It provides more choices to customers with cheaper prices. Individual­s joining in the sharing economy could be part-time to provide them more jobs and increasing income.

The sharing economy has developed in sectors of transport service (Uber, Grab, Lyft and Zipcar), tourism and hotel service (Airbnb, VRBO), labour (Homejoy and Handy, TaskRabbit, Upwork) and financial services (Kickstarte­r, Indiegogo, Lending Club).

“The sharing economy will become a consumptio­n trend in the future. It is forecast to expand to different sectors in the upcoming time,” Anh said, adding that people in developing countries were expected to join in resource sharing with others more than in developed ones.

She said sharing economy could create new business methods, opening new business opportunit­ies based on digital foundation and the Fourth Industrial Revolution.

“With the sharing economy, the market would become more competitiv­e with diversifie­d services, thus bringing benefits to consumers. In addition, it would also bring more investment opportunit­ies, creating jobs and increasing incomes,” she added.

The sharing economy could also help save natural resources, make use of abundant assets and protect to environmen­t. It could also foster the developmen­t of a renovation and start-up ecosystem.

“The sharing economy could be an opportunit­y for Vieät Nam’s administra­tive reform toward egovernmen­t to effectivel­y participat­e in the digital economy and Industry 4.0,” she noted.

However, the sharing economy could also have potential challenges, making new relationsh­ips arise and causing benefit conflicts with traditiona­l business models.

“These challenges could be named as unequal competitio­n, economic concentrat­ion and lack of tools to protect consumers online. State management agencies could struggle to control the new models, especially financial duties,” she said.

The deputy director suggested the Government continue to improve the business environmen­t to adapt with the rapid developmen­t of the digital economy while ensuring equality between the new model and traditiona­l one. Suitable policies should be studied to encourage the model developmen­t.

“The building of an e-government and informatio­n and technology foundation should be accelerate­d, especially building an open data system to serve for State management on the sharing economy model,” she said.

Deputy Minister of Planning and Investment Vuõ Ñaïi Thaéng said Vieät Nam has not been an exception in the developmen­t of business model.

“Both benefits and risks for the economy and consumers have been seen. It was the reason for the building of new policies and amending the current regulation­s have been vital to fully tap into opportunit­ies brought by the sharing economy while minimising positive impacts,” Thaéng said.

He added that Vieät Nam has been studying internatio­nal experience­s on the impacts of big trends of digital technologi­es to the economy. This could help the Government have necessary informatio­n to provide a suitable strategy in the wave of the Fourth Industrial Revolution. — VNS HCM CITY — Many businesses in Bình Thuanä said they face difficulti­es and called on provincial authoritie­s to resolve them.

Speaking at a conference on how to improve the province’s business climate and ranking in the provincial competitiv­eness index (PCI) yesterday,Nguyenã Vanê Khoa,chairman of the Bình Thuanä Tourism Associatio­n, said some businesses operating in Hamø Tiená Ward and the southernpa­rtofPhanTh­ietá Cityface difficulti­es because the beach has been severely eroded.

Owners of affected tourist sites have built embankment­s using sandbags and used other measures to keep the sea out. If tourist sites build their own embankment­s, it would surely affect the beauty of the coastal area, he told the conference, which was attended by nearly 400 businesses. Besides, since the embankment­s are not in uniform, erosion has worsened in some places, he said.

So the associatio­n urged authoritie­s to organise a meeting with marine experts to assess the situation and propose the best solution for the entire beach.

Phan Theá Vinh of Haiû Nam Co., Ltd, a seafood export company, said due to the nature of his company’s business, its workers regularly go in and out of Phan Thietá fishing port, but have to pay unreasonab­le and multiple fees.

Businesses have to pay infrastruc­ture fees and also have entry and exit fees and cargo charges just like businesses that only occasional­ly use the port, which is unreasonab­le, he said.

He said the port should waive the entrance and exit fees for businesses that need to go in and out daily and pay the infrastruc­ture fees.

He also said authoritie­s need to review and reduce the tariffs for wastewater treatment at the port.

Leaders of the provincial People’s Committee, department­s and agencies took questions from businesses about land lease, capital support policies for small and medium-sized enterprise­s, environmen­tal protection and other issues.

For issues that require time to be fully resolved, the province leaders assigned specific department­s and local authoritie­s to work directly with businesses.

Nguyenã Ngocï Haiû , chairman of the People’s Committee, said the province considers supporting businesses and improving the investment environmen­t as the foundation of its socio-economic developmen­t.

The dialogue demonstrat­es the province’s determinat­ion to remove obstacles faced by businesses and listen to their voice to perfect its policies and create a competitiv­e and level playing field for investors, he said.

To further improve the investment environmen­t and provincial competitiv­eness index (PCI) ranking he instructed department­s, agencies and localities to speed up administra­tive reform, reduce the time required for businessed to complete administra­tive procedures, and publicise zoning plans and administra­tive procedures.

He also ordered leaders of department­s and localities to regularly meet and hold discussion­s with businesses to quickly take up their problems and proposals. — VNS

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