eBay set to announce Vietnam deal

Posted by: Frederik Balfour on June 16, 2008

I’m quite excited at this, my first attempt to break a story by blogging. According to a well placed source with a tech venture capitalist outfit IDG in Vietnam, I learned that tomorrow eBay is set to unveil a cooperative agreement with local outfit Peacesoft Solutions. Though details of the deal are still sketchy, all will be revealed on June 17 at a press conference held at the Park Hyatt Hotel in Ho Chi Minh City. For an update on the partnership, please click to my BusinessWeek story here.

To avoid repeating the mistakes it made in China , where in December 2006 eBay beat a retreat from the local market, the company is going to leave the running of its Vietnamese online auction service to people who understand the local market. The local website, called ChoDienTu [which translates to electronic market place] counts IDG Vietnam Venture Capital among its investors, and was founded nearly three years ago. The company runs its own e-commerce site though problems with security and online settlement have restricted the scope for growth. The tie-up with eBay will be a boon for Vietnamese businesses dealing with overseas customers and suppliers, the source told me.

“Markets like this aren’t big enough for Ebay to make direct investments so for them the critical resources are management resources,” he said, “so a tie-up with local partners makes sense. We think e-commerce or retailing are still quite immature in Vietnam and for us these businesses won’ttake off until there are tailored platforms that work.” For now most trades have involved buyers and sellers agreeing on the internet to make face to face cash transactions.

Reader Comments

Son Nguyen

June 16, 2008 1:10 PM

With the eBay brand behind its back, Peacesoft Solutions would be able to woo some buyers and sellers. The business model is still tough with the local market though.

Robert Plano, TX

June 16, 2008 2:15 PM

Vietnam will be a hard place to do auctions. This place is the wild west. few rules and it takes forever to resolve litigation. There are several issues yet to be resolved. Counterfeit is a big issue too.

froliky

June 16, 2008 5:40 PM

They cant manage their US based operations now with consistency and safety, How could they do so anywhere else? This company needs to adopt proper and effective member safeguards or its all smoke and mirrors. No sense spreading your germs around Paypal/eBay. False Not as Described and item not received claims, abusive one-way feedback, a problem prone seller rating system add up to a huge nightmare for members. Save your bells and whistles till they have something to show.
Talk to those who sell. No one else knows. This was free.

Hans

June 16, 2008 11:51 PM

That sounds terrific and I could not help giggling. So the the Vietnamese IDG has some security problems. Great, that's a perfect match with Ebay.

Incidentally, German tv yesterday had a piece about rampant fraud at Ebay Germany. The numbers were staggering. Lots of it coming out of Rumania.

Eric Stevens

June 17, 2008 7:51 AM

I agree with Mr. Plano. Too few to do it if they could, and legal disputes are left up to something out of a high noon scene in a Western movie.

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Bloomberg Businessweek’s team of Asia reporters brings you the latest insights on business, politics, technology and culture from some of the world’s biggest and fastest-growing economies.

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