Jack Ma initiated non-cash payment services, affirming Alibaba's business plan in Vietnam

By Dang Hoa - Nov 07, 2017 | 05:13 PM GMT+7

TheLEADERBillionaire Jack Ma, founder of China's biggest online commerce company Alibaba, said he would study setting up Vietnam's store on the company's e-commerce application.

Jack Ma initiated non-cash payment services, affirming Alibaba's business plan in Vietnam
Prime Minister Nguyen Xuan Phuc receives billionaire Jack Ma

At the meeting with Prime Minister Nguyen Xuan Phuc on November 6, Jack Ma said that Vietnam had great potential to develop e-commerce and technological science, a prerequisite for boosting the economic development.

Jack Ma acknowledged that over the past 10 years, Vietnam has grown rapidly. Vietnamese young people nowadays are full of vigor and vitality. Currently, Vietnam has a large and young population, 60 per cent of which are under 35 years old, which may create a pressure in job creation in Vietnam in next 5-10 years. He said that developing e-commerce is one of the best solutions to solve this problem. Vietnam needs to promote cargo transportation and logistics, customs reform, trade verification, cross-border e-commerce development and business to consumer (B2C) business.

Currently, 54 per cent of Vietnamese population use mobile phones but mainly for playing games. Jack Ma suggested that smartphones should be used to trade or communicate with people online more. In the future, everything can be labeled "Made in internet" instead of Made in any countries. Every activity from purchasing goods to assembling can be done on the internet.

Cash is still used popularly in the Vietnamese market. Only 4 million out of 95 million people in Vietnam shop online while the rest 90 per cent of payment activities are paid in cash. Jack Ma said that this market has not been developed but it will bring golden opportunities for businesses to develop.

Alibaba executive chairman also affirmed that the company wanted to support Vietnam in promoting e-commerce and online payment services.

Prime Minister Nguyen Xuan Phuc also hoped that Jack Ma and his company would support to establish a store for Vietnam on Alibaba’s e-commerce application as well as provide training programs for micro, small and medium-sized enterprises on the application of e-commerce models.

"Vietnam hopes that Alibaba will help establish an ecosystem connecting products of Vietnamese farmers, small and medium-sized businesses in Vietnam to the international markets," said Prime Minister Nguyen Xuan Phuc.

Governor of State Bank of Vietnam Le Minh Hung also hopes that Alibaba’s experience and advanced technology would help Vietnamese exporters and importers, especially small and medium-sized enterprise, reduce the time and costs of trade promotion from product marketing to transaction and payment.

Billionaire Jack Ma affirmed his support for the Alibaba's business plan in Vietnam. In the coming time, the corporation will promote the provision of non-cash payment services for small and medium-sized enterprises, startups as well as Vietnamese consumers.

On the same day, billionaire Jack Ma had a talk with over 3,000 Vietnamese students and young people, sharing his business experience. In the meeting, Jack Ma expressed his impression of the optimism among young people in Vietnam, saying that this is an important resource for the development of Vietnam’s economy, especially in the context of the 4.0 industrial revolution.

Jack Ma shares his business experience with Vietnamese young people

Jack Ma said that in the last century, successful companies were mostly big firms with large amounts of personnel and capital resources. But in this century, small but dynamic, innovative businesses are the most likely to succeed. He also advised Vietnamese young generation to choose the right time, right people and be always optimistic and determined to start a business, saying this is the right time for Vietnamese youth to act and develop. Vietnam should make the most of the internet to collect knowledge, study and make friends.

"I am happy to be here, talking to the prime minister, the deputy prime minister, and leaders of the State Bank of Vietnam. As Alibaba, they all support and facilitate Vietnam’s e-commerce development. However, the key now is in your hand, young people with full of vigor and vitality. Without you, there would be no chance," said Jack Ma.