Traceability: The driving force for 'greening' e-commerce

Traceability is the 'key' for Vietnam's e-commerce to develop transparently, fairly and 'greenly' in the future.

Not only considered as a technical tool to help manage the origin and provenance of goods, traceability has now become the "key" for e-commerce to develop in a green and sustainable direction. As consumers are increasingly interested in green, environmentally friendly products, transparency of information about product life cycles is increasingly important in building consumer trust and promoting the trend of green and sustainable consumption.

Traceability: A driving force for 'greening' e-commerce.

So how can traceability really become the driving force for "greening" Vietnam's e-commerce? Reporter of Industry and Trade Newspaper had an interview with Mr. Nguyen Van Thanh, Head of Policy Department, Department of E-commerce and Digital Economy ( Ministry of Industry and Trade ) on this issue.

Leverage for sustainable development of e-commerce

- Sir, in the context of the huge volume of goods sold on e-commerce, to ensure the rights of consumers as well as strictly manage the responsibilities of the parties participating in the floor, what requirements are needed regarding traceability?

Mr. Nguyen Van Thanh : As we all see, Vietnam's e-commerce has a relatively fast growth rate compared to many countries in the region and in the world . Currently, Vietnam is ranked 3rd in Southeast Asia, after Indonesia and Thailand, with online retail sales in 2023 reaching about 20.5 billion USD.

It is expected that by 2025, we can reach about 31.5 billion USD, corresponding to an average growth rate of 25.5%. Regarding the proportion of e-commerce in total retail sales, in 2024 we will account for about 10% and in 2025 it may be a little higher. It can be seen that e-commerce is still growing strongly, being responded to and chosen by many social classes when shopping for goods and services because of its ability to provide anytime, anywhere.

In 2025, Vietnam's export turnover is expected to reach about 900 billion USD and this is a very impressive number, a good sign for Vietnamese enterprises that are strongly focusing on exports, especially exports through the online environment. Thus, it can be seen that not only domestic e-commerce but also cross-border e-commerce is having strong development steps.

However, the downside of the rapid development of e-commerce is the shortcomings of this form of business. In traditional commerce, checking for infringing goods is difficult, and in the online environment it is many times more difficult. The problem is how to effectively push back counterfeit goods and intellectual property infringements on e-commerce.

Currently, the legal framework in the field of e-commerce in Vietnam has been and is being completed. We have Decree 52/2013/ND-CP and Decree 85/2021/ND-CP (amended and supplemented) which have created a legal foundation for e-commerce to develop and be relatively well managed in recent times. However, in the face of new fluctuations, the development and promulgation of the Law on E-commerce is inevitable.

This law will help increase transparency of information about products and goods, clearly defining the responsibilities and obligations of e-commerce intermediary platforms. In particular, regulations on traceability will be an important factor in helping the e-commerce market become more transparent in the future.

Traceability will help orient production, accurately describe product information when circulating on the online market, ensuring factors such as labels, stamps, standards, and quality. At that time, Vietnam's e-commerce will not only develop in speed but also aim for green and sustainable development.

Mr. Nguyen Van Thanh, Head of Policy Department, Department of E-commerce and Digital Economy (Ministry of Industry and Trade) answered an interview with Industry and Trade Newspaper.

Orienting green consumption demand in the market

- You mentioned that traceability will contribute to the green and sustainable development of e-commerce. Could you please elaborate on this aspect?

Mr. Nguyen Van Thanh : Traceability is an important foundation for e-commerce to develop in a transparent, green and sustainable direction. When each product is clearly labeled with a traceability code, consumers can check all information about the origin, production process, quality certification as well as environmental factors throughout the product life cycle. This is a "green passport" that helps buyers easily identify environmentally friendly, clean and responsibly produced products, thereby making green consumption choices, promoting sustainable consumption trends in society.

For example, consumers like organic products, but in the past they only received information advertising that the product was organic from the business without any tools or channels to confirm whether the product was organic or a real green product or not. However, now we apply traceability, this is extremely easy. We can trace where the product was produced, whether it followed an organic process or not, whether it was certified as an organic product or not.

As consumers proactively seek out and prioritize green consumption, businesses are also forced to change, invest in more sustainable production processes, and meet environmental and social transparency requirements.

In addition, traceability systems also help businesses closely control the supply chain, optimize production, reduce waste and emissions, thereby contributing to the goal of green growth. Transparency of product information also helps Vietnamese businesses improve their competitiveness and meet increasingly stringent environmental standards of the international market.

It can be said that traceability is not only a technical tool, but also an important part of the green development strategy of e-commerce. Thereby, it helps to connect green businesses and green consumers, towards a sustainable and responsible e-commerce.

- So, in your opinion, how can traceability activities be implemented more effectively in the e-commerce environment in the coming time?

Mr. Nguyen Van Thanh : It can be said that the traceability activities in Vietnam have developed widely in recent times, but the quality of implementation has not been as effective as expected. The reason is that the current traceability system is still quite scattered, each ministry, branch and locality has its own system with different criteria, leading to incompatibility and not sharing data with each other.

In addition, many businesses create their own traceability codes, but the descriptive information is only one-sided, self-published by businesses without close supervision from state management agencies. When disputes arise, there is no basis for comparing information, making it difficult for consumers to protect their legitimate rights. This situation affects consumer confidence in e-commerce.

Therefore, it is necessary to have a unified national traceability system to connect and share data among ministries, branches and localities. This system will help unify criteria, increase transparency and reduce operating costs for both the State and businesses.

When concentrated at a national focal point, with unified direction from the central to local levels, all retrieval activities will be operated smoothly, data will be updated centrally, making inspection, monitoring, and handling of violations more convenient.

At that time, all participating businesses will be forced to provide accurate information and be more responsible for their products. Centralized management also contributes to cost savings, improves data accuracy and creates a fair and transparent competitive environment.

I think that, technically, software and infrastructure are not too difficult issues for us to build a unified traceability system. The important thing is to have a suitable legal corridor and policy mechanism to operate this system effectively.

Thank you very much!

Traceability is becoming an important tool to help businesses improve transparency, affirm their reputation and meet green consumption trends. This is also one of the key factors promoting sustainable e-commerce development, creating trust for domestic and foreign consumers.

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