Vietnam Leads ASEAN in Domain Registrations

55,944 new .vn domains were registered in Vietnam in the first half of 2015, according to the Vietnam Internet Network Information Center (VNNIC), ranking the country first among the ten ASEAN members for the number of country code top-level domains.

Over 34,500 new domains written in Vietnamese were registered, bringing the total number of domain names written in Vietnamese to 1,075,286, of which 17.8 percent were recorded as being in active use. The total number of internationalized domain names (IDNs), which are managed by the Ministry of Information and Communications, was reported as 140,266 on June 30 2015. Only 87 agents have legal capability to provide IDNs in Vietnam.

RELATED: Dezan Shira & Associates’ Information Technology-Based Solutions

It is no wonder that the number of domain names are growing fast – Vietnam’s 36.5 million-strong population of internet users represent a burgeoning market for online retailers.

As .vn domains make use of servers in Vietnam, the shortest domestic route is used by Vietnam National Internet Exchange (VNIX) to minimize connection problems within Vietnam. In the regular event of a broken international undersea cable, your .vn website will still be online within Vietnam.

Unlike neighboring China, access to foreign search engines is not heavily restricted in-country, and your .vn website will rank highly in Google searches within Vietnam.

However, Vietnam online is not a free-for-all; Vietnamese domain names must not contain sensitive phrases deemed by the VNNIC as going against Vietnamese tradition and national security.

RELATED: Understanding Vietnam’s E-Commerce Market

When your website is established, a clear strategy is needed on how to receive payment in the country, as online shoppers in Vietnam pay in a variety of ways. In 2014, 64 percent paid by cash on delivery, 37 percent used an e-wallet, and only 11 percent paid by card.

Further Support for Your Business

Dezan Shira & Associates provides accounting services to companies investing in and selling to Vietnam. The firm can help companies establish an online presence and direct office in the country and can guide them through the affiliated accounting, tax, legal and HR issues that come with doing so. To arrange a free consultation, please contact us at: vietnam@dezshira.com

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