Draft Law on E-Commerce: Proposal to Strengthen the Responsibilities of Entities Engaged in E-Commerce Activities

Under the rapid growth and strong development of e-commerce, the current legal framework under existing guiding instruments—specifically Decree No. 52/2013/ND-CP and its amending and supplementing documents—has revealed various shortcomings and obstacles, failing to address newly arising issues in the practical operation of e-commerce in Vietnam as well as in cross-border transactions.

With the aim of fully and comprehensively institutionalizing the Party’s orientations and the State’s policies, as well as incorporating international commitments in line with global practices and addressing the inadequacies of the current legal framework, the Ministry of Industry and Trade has completed the draft Law on E-Commerce (the “Draft”). Several notable proposals under the Draft are as follows:

The Draft proposes supplementing specific regulations governing new e-commerce models, including direct e-commerce business platforms, intermediary e-commerce platforms, social networks operating for e-commerce purposes, and multi-service integrated platforms, instead of regulating only websites for e-commerce and e-commerce service websites as currently provided.

The Draft also proposes to expand the responsibilities of individuals involved in selling activities on e-commerce platforms, including the obligations of livestream sellers and affiliate marketers regarding identification of sellers, full disclosure of product information, and avoidance of misleading representations concerning the seller or the nature of the product. The Draft further proposes that domestic sellers be verified through VNeID and foreign sellers through lawful identification documents issued by the country of their residence.

For e-commerce platforms operated by foreign organizations or individuals, the Draft introduces additional requirements for these entities to conduct business in Vietnam. Depending on the type of e-commerce platform, the Draft provides for varying obligations, ranging from appointing or authorizing a legally competent representative in Vietnam to fulfill tax obligations, address disputes, and protect consumer rights, to establishing a legal entity in Vietnam and complying with foreign investment regulations in the e-commerce sector.

In addition, the Draft proposes supplementing minimum responsibilities for service providers supporting e-commerce activities, such as providing authorities with information related to sellers and products upon request; proactively reporting signs of legal violations in e-commerce activities to competent authorities; and terminating cooperation with e-commerce platforms that violate the law when so requested by the authorities.

Overall, the Draft represents an important step toward improving the legal framework governing the e-commerce sector in Vietnam. The proposed amendments and supplements help address the shortcomings of existing regulations, strengthen consumer protection, and create a more transparent environment for business development. The Draft is expected to contribute positively to socio-economic development in the context of Vietnam’s ongoing digital transformation.