According to the proposal of the Ministry of Industry and Trade, cross-border e-commerce platforms entering the Vietnamese market must apply for a license and set up a representative office in Vietnam.
According to current regulations, cross-border e-commerce retail platforms with Vietnamese domain names, Vietnamese display language, or with more than 100,000 transactions per year from Vietnam must register their operations with the Ministry of Industry and Trade.
However, in 2024, some border e-commerce platforms such as Temu, Shein… have not registered to operate in Vietnam but still allow users to download applications (apps), make purchases and pay on this platform with the Vietnamese version.
Therefore, in the draft outline for the Law on E-commerce that is being consulted, the Ministry of Industry and Trade proposes that traders and organizations with cross-border e-commerce activities in the Vietnamese market must apply for a license from the Ministry of Industry and Trade. Along with that, they must establish a representative office in Vietnam or appoint an authorized representative who is a legal entity in Vietnam.
The Ministry of Industry and Trade also stipulates the responsibilities of representative offices or authorized legal entities in Vietnam to ensure the rights of consumers in Vietnam. Regulates the responsibility to authenticate foreign sellers and compensate buyers before there are violations on the platform.
Along with that, foreign goods sold and foreign services provided in the Vietnamese market must meet the standards and regulations on goods and services of the Vietnamese market.
According to the Ministry of Industry and Trade, with sellers on e-commerce platforms being identified and managed more closely, tax collection will be more effective, reducing tax evasion and tax fraud. This contributes to the state budget, creating resources for socio-economic development.
A report by the Department of E-commerce and Digital Economy (Ministry of Industry and Trade) shows that Vietnam’s e-commerce continues to maintain an impressive growth rate of 18 – 25% per year. In 2024, the size of the e-commerce market will exceed 25 billion USD, an increase of 20% compared to 2023, accounting for about 9% of the total retail sales of goods and consumer service revenue nationwide.
The proportion of e-commerce accounts for 2/3 of the value of Vietnam’s digital economy. The growth rate of e-commerce and Vietnam’s digital economy continues to grow steadily at double digits, ranking among the TOP 10 countries with the highest e-commerce growth rate in the world, creating momentum for digital economic development and leading digital transformation in businesses.
Notably, cross-border e-commerce has become an important channel for exporting goods, expanding the consumption market for Vietnamese goods.
Data from Amazon Global Selling Vietnam’s report shows that more than 17 million products of Vietnamese enterprises have been exported, up 50% in value and 40% in the number of sales partners. Overall, cross-border e-commerce has grown 26% compared to the previous year.
Although Decree No. 85/2021/ND-CP of the Government has initial regulations on conditions applicable to entities providing cross-border e-commerce services in the Vietnamese market, the regulations are not strong and widespread enough, leading to many cross-border e-commerce platforms entering the Vietnamese market without completing official legal procedures.