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Vietnam's B2C e-commerce market reached $25 billion in 2024. Photo: Minh Thu

The Ministry highlighted that Vietnam's business-to-consumer (B2C) e-commerce market reached $25 billion in 2024.

However, investigating and addressing violations in online transactions remains complex. Authorities find it challenging to trace warehouses or sellers in cases of misconduct because of insufficient electronic identification mechanisms and comprehensive oversight.

E-commerce platforms are sometimes exploited for fraudulent activities or tax evasion. Consumers face difficulties due to the lack of transparency about products, services, and seller information, such as addresses or contact details. Often, even the delivered goods lack details about the seller.

The online dispute resolution process is also ineffective. Customers are frequently unable to resolve disputes with sellers and find it challenging to contact platform operators directly, as these companies often use centralized call centers that lack transparency.

To address these issues, the Ministry has proposed stronger regulations for cross-border e-commerce activities. These include defining e-commerce business models, clarifying the rights and obligations of participants, and enhancing the decentralization 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.

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 such as their 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 of Industry and Trade, establish representative offices in Vietnam, or designate authorized local legal representatives.

These entities will be responsible for verifying foreign sellers and compensating buyers in case of violations on the platform.

Although Decree 85 introduced basic conditions for cross-border e-commerce service providers in Vietnam, the Ministry noted that these regulations remain insufficiently robust and effective.

Many cross-border e-commerce platforms operate in Vietnam without completing official legal procedures.

Current regulations for cross-border e-commerce are generally less stringent than those applied to entities with official investments in the domestic market, creating an uneven competitive environment.

Tam An