It is necessary to develop and promulgate the Law on E-commerce.

E-commerce in Vietnam has experienced strong growth, and it is necessary to develop an E-commerce Law to provide a more effective tool for managing this activity.

E-commerce in Vietnam is developing strongly.

Policy impact assessment report of the proposed law. E-commerce According to a recent report issued by the Ministry of Industry and Trade , in the context of global integration into trade, Vietnam's e-commerce has witnessed strong development.

Vietnam's B2C e-commerce sales reached only US$2.97 billion in 2014, but by 2024, this figure had risen to US$25 billion, representing an average annual growth of 26.7%, accounting for approximately 9% of the country's total retail sales of goods and consumer services. Over 60% of the population participated in e-commerce, with an average purchase value of around US$400 per person per year. E-commerce has become a popular shopping method, especially in major cities like Hanoi and Ho Chi Minh City.

E-commerce is thriving in Vietnam (Photo: MOIT)

Over the years, Vietnam has enacted policies and legal documents to regulate the relationships between entities involved in e-commerce activities, aiming to create favorable conditions and encourage people and businesses to gradually participate in e-commerce and become familiar with online business, creating the foundation and legal basis for the strong development of e-commerce in Vietnam today.

In Vietnam, in 2003, the Ministry of Trade (now The Ministry of Industry and Trade (Ministry of Industry and Trade) published the first Vietnam E-commerce Report, which affirmed that, by 2003, "we had begun and progressed quite rapidly on the first leg of the New Silk Road," considered a significant milestone for the development of e-commerce in our country.

To date, Vietnam has basically established a legal framework for e-commerce. Specifically, the 11th National Assembly enacted the Law on Electronic Transactions in 2005, officially recognizing the legal validity of electronic transactions in general, including in the business and commercial sectors. The Government also issued Decree No. 57/2006/ND-CP dated June 9, 2006, on e-commerce.

To regulate the conclusion of e-commerce contracts, the Minister of Industry and Trade issued Circular No. 09/2008/TT-BCT dated July 21, 2008, guiding the Decree on e-commerce regarding the provision of information and conclusion of contracts on e-commerce websites. In response to the development of e-commerce platforms and websites, the Minister of Industry and Trade issued Circular No. 46/2010/TT-BCT dated December 31, 2010, regulating the management of e-commerce websites selling goods or providing services…

Most recently, on June 22, 2023, the 15th National Assembly enacted the Law on Electronic Transactions 2023, creating a complete, comprehensive, and favorable legal framework for the transition of activities from the physical to the digital environment in all industries and sectors. On June 20, 2023, the National Assembly also enacted the Law on Consumer Rights Protection. This is an important draft law spearheaded by the Ministry of Industry and Trade, with a broad impact on many industries and sectors, including e-commerce.

In addition to the aforementioned documents, regulations related to e-commerce activities are stipulated in numerous legal documents across various fields. Generally speaking, it can be said that over the years, the Vietnamese legal system related to e-commerce has been built and continuously improved, contributing to creating a transparent e-commerce environment and protecting consumer rights.

Continue to strengthen the legal framework for e-commerce.

However, according to the Ministry of Industry and Trade, in reality, many new technologies, models, and types of e-commerce activities have emerged, rapidly changing the manifestations and existence of e-commerce relationships.

In addition, the Ministry of Industry and Trade has reviewed the implementation of Government Decree No. 52/2013/ND-CP on e-commerce and Decree No. 85/2021/ND-CP dated September 25, 2021, amending and supplementing some articles of Government Decree No. 52/2013/ND-CP dated May 16, 2013, on e-commerce. Practical management has revealed many legal gaps, creating an urgent need to strengthen and improve the legal system in a scientific, synchronized, transparent, effective, and efficient manner.

At the recent conference summarizing the work of 2024 and outlining the tasks for 2025 of the Department of E-commerce and Digital Economy, Ms. Le Hoang Oanh, Director of the Department of E-commerce and Digital Economy, stated that although Decree 85/2021/ND-CP has initial regulations on the conditions applicable to entities providing cross-border e-commerce services to the Vietnamese market, state management agencies still face difficulties in managing and supervising business activities with cross-border e-commerce platforms.

Furthermore, many cross-border e-commerce platforms that are unlicensed or in the process of being licensed are still providing e-commerce services in Vietnam, selling cross-border products and goods into the Vietnamese market at low prices. This negatively impacts the domestic consumer market, creates competitive pressure on domestic e-commerce platforms, and significantly affects consumer purchasing behavior.

Livestreaming sales are a rapidly growing trend in e-commerce, but current e-commerce regulations only address it generally as an advertising activity accompanying sales. There are no specific regulations regarding the entities participating in livestreaming, the minimum information required for viewers, etc. The issue of controlling counterfeit goods, prohibited goods, goods infringing intellectual property rights, and substandard goods also presents a challenge for state management agencies, requiring more effective management tools.

The process of perfecting policies and laws on e-commerce has received close and decisive attention and guidance from the National Assembly and the Government. Therefore, the Ministry of Industry and Trade has submitted a proposal to develop a Law on E-commerce.

The draft Law on E-commerce raises several issues of concern, for example, e-commerce businesses must have specific responsibilities regarding policies, regulations, information on goods and services, and the classification of domestic or foreign goods sold on the platform.

Regulations regarding the provision of periodic information and reporting on business activities on the platform are also specified for those conducting livestreams or those advising on the sale of goods and services in conditional business sectors.

Sellers on e-commerce platforms must complete the identification process as required by regulations on electronic identification and authentication before providing goods and services. They must provide the platform with their name, address, identification number, and personal income tax number.

For cross-border e-commerce activities, businesses must obtain a license from the Ministry of Industry and Trade and establish a representative office in Vietnam or appoint an authorized representative that is a legal entity in Vietnam. They must also be responsible for verifying foreign sellers and compensating buyers in case of violations on the platform.

In a brief exchange with a reporter from the Industry and Trade Newspaper on the afternoon of January 20th, economist Vu Vinh Phu emphasized that e-commerce is developing strongly worldwide, and Vietnam is no exception. However, the legal framework for this activity still has many loopholes, especially regarding the management of product quality and origin.

“In this context, the draft Law on E-commerce proposed by the Ministry of Industry and Trade is timely and prompt. I hope this draft law will keep pace with the very strong development trend of e-commerce in the market, helping to create a sufficiently strong framework to both effectively manage the state and create conditions for e-commerce to develop strongly in Vietnam.” – Expert Vu Vinh Phu expressed his expectations.

In the draft Law on E-commerce, the Ministry of Industry and Trade has identified the following major policies: Firstly, Supplement and standardize concepts in accordance with current legal regulations. Secondly, It regulates the forms of e-commerce activities, the entities participating in e-commerce activities, and related rights and obligations. Thirdly, This regulates the responsibilities of units providing e-commerce support services. Fourth, Regulations concerning the authentication of electronic contracts in commerce. Fifth , regulations concerning the development and growth of e-commerce.

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