Vietnam Prioritizes Legal Framework for Booming E-commerce
The Vietnamese Government has taken a decisive step toward strengthening its digital economy by issuing Resolution No. 352/NQ-CP, which formally approves the core contents of the draft Law on E-commerce.
This crucial piece of legislation is designed to modernize and solidify the legal framework governing the nation’s rapidly expanding digital marketplace.
Under the terms of this resolution, the Ministry of Industry and Trade (MoIT) is designated as the principal agency responsible for the entirety of the draft law.
This includes not only the initial contents but also managing the necessary reports on the acceptance and explanation of all feedback received from the National Assembly (NA)’s Standing Committee and other Government members.
The MoIT is mandated to thoroughly review and finalize the draft law in strict adherence to established regulatory procedures.
Furthermore, the minister of the MoIT is authorized, on behalf of the Prime Minister, to sign all requisite reports and related documentation to be submitted to the NA and the NA’s Standing Committee, ensuring that the final legislative package meets both the required quality standards and the stipulated timeline.
The necessity for this updated law is underscored by the immense growth of Vietnam’s e-commerce market, which has seen its retail value skyrocket from US$2.97 billion in 2014 to a staggering $25 billion in 2024.
This phenomenal expansion, representing an average annual growth rate of between 20 and 30 percent over the past decade, emphasizes the urgency of creating a stable and secure regulatory environment for the entire e-commerce sector.
Detailing the Scope and New Prohibited Acts for Online Businesses
The comprehensive draft Law on E-commerce is structured into seven distinct chapters and contains a total of 55 articles, methodically defining the specific rights and responsibilities for a wide array of entities operating within the online sphere.
This broad scope covers traditional e-commerce merchants, individual online business operators, the large e-commerce platforms themselves, third-party logistics and payment service providers, digital advertising service providers, and importantly, foreign organizations and enterprises that conduct cross-border activities targeting consumers in Việt Nam.
Given the rapid maturation of the Vietnamese e-commerce market and the corresponding increase in the complexity and sophistication of fraudulent activities and other violations, the draft law introduces a robust list of ten specific prohibited acts for online businesses.
These prohibitions are wide-ranging and critical for consumer protection and market integrity.
They include using e-commerce channels to illegally raise capital; committing fraudulent acts or actively deceiving customers; and providing information that is false or misleading during the submission of administrative procedures or when supplying data to state authorities.
The explicit goal of introducing this expanded list of prohibited acts is to significantly strengthen the existing legal framework.
By doing so, the government aims to actively support the sustainable and ethical development of the e-commerce sector while simultaneously providing stronger and more explicit protections for consumers against deceptive practices.
This legal clarity is vital for maintaining public trust in digital transactions and ensuring the market’s long-term health.
Securing Sustainable Growth and Market Dominance in Southeast Asia
The importance of the new e-commerce law is magnified when considering Vietnam’s dominant position in the regional market and its potential for future expansion.
Data released by the MoIT confirms that Vietnam’s e-commerce sector held the third-largest market size in all of Southeast Asia in 2024.
Furthermore, the country was ranked fifth globally in terms of sector growth rate in 2022, underscoring its dynamic momentum on the international stage.
The phenomenal growth from less than $3 billion to $25 billion in a decade highlights how deeply digital commerce is now integrated into the nation’s economic fabric.
In 2024 alone, the e-commerce sector’s sales accounted for a significant 10 percent of the total national retail sales of goods and consumer services, illustrating its maturity and impact on the overall consumer landscape.
This high level of market penetration and rapid scale-up necessitates a regulatory environment that can handle large volumes of transactions, resolve complex disputes, and effectively police sophisticated cross-border violations.
The new Law on E-commerce is the government’s comprehensive solution to ensure that this impressive growth is not undermined by fraud or uncertainty.
By clearly defining the roles and responsibilities of all market participants and imposing strict penalties for prohibited actions, the government aims to safeguard the trust and security necessary for Vietnam to not only sustain its current growth but also potentially achieve greater dominance within the highly competitive Southeast Asian digital marketplace.
