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Vietnamese ministry proposes new e-com regulation to improve oversight

22 Jan '25
2 min read
Vietnamese ministry proposes new e-com regulation to improve oversight
Pic: Adobe Stock

Insights

  • A new e-commerce regulation has been proposed in Vietnam to improve oversight of online sellers, requiring detailed identification and tax information.
  • Probing online violations is complex, and tracing warehouses or sellers is a challenge.
  • The proposal includes defining business models, clarifying the rights and obligations of participants, and further decentralising oversight responsibilities.
Vietnam’s ministry of industry and trade recently proposed a new e-commerce regulation to improve oversight of online sellers, requiring detailed identification and tax information to address regulatory gaps.

The country’s business-to-consumer (B2C) e-commerce market reached $25 billion last year, it noted.

However, probing and addressing violations in online transactions are complex, and it is a challenge for authorities to trace warehouses or sellers in cases of misconduct due to insufficient electronic identification mechanisms and lack of comprehensive oversight, domestic media outlets reported.

E-commerce platforms are sometimes exploited for fraudulent activities or tax evasion; there is lack of transparency about products, services and seller information; the online dispute resolution process is ineffective; and customers are unable to resolve disputes with sellers and find it challenging to directly contact platform operators.

The ministry’s proposal to address these issues includes defining e-commerce business models, clarifying the rights and obligations of participants, and enhancing the decentralisation of oversight responsibilities.

The draft law also specifies requirements for individuals engaged in activities such as livestream sales or advisory services for goods and services in regulated industries, a domestic media outlet reported.

Sellers using intermediary e-commerce platforms will need to verify their identities according to electronic identification regulations before offering goods or services.

They will also have to provide information like names, addresses, identification numbers and personal income tax codes to intermediary platforms.

For cross-border e-commerce activities, businesses must obtain permits from the ministry, establish representative offices in Vietnam, or designate authorised local legal representatives.

Many cross-border e-commerce platforms operate in Vietnam without completing official legal procedures. Regulations for cross-border e-commerce are generally less stringent now than those applied to entities with official investments in the domestic market, creating an uneven competitive environment.

Fibre2Fashion News Desk (DS)

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