E-commerce in Vietnam has boomed in recent years and especially
since the Covid-19 pandemic, fuelled by key factors such as
progressive government policies and increased middle-income class
and fast-growing internet economy. According to the Ministry of
Industry and Trade (MOIT), the e-commerce market is expected to
reach an estimated value of USD 35 billion by 2025 with annual
growth rates of 30%. The most important platforms in Vietnam
include:
– Shopee:
Currently one of the leading platforms in Vietnam, known for its
user-friendly interface and extensive product range. It often
employs aggressive marketing strategies and promotions.
– Lazada
A well-established player, Lazada focuses on a wide variety of
products and offers a robust logistics network. It is part of
Alibaba Group, which enhances its reach and resources.
– Tiki:
Starting a book retailer, Tiki has expanded into various categories
now. It is known for its fast delivery service and focus on
quality.
– Sen Đỏ (Sendo):
A local platform that has carved out a niche by focusing on smaller
businesses and local sellers, offering a variety of goods, from
electronics to fashion.
– TikTok
TikTok primarily attracts young users who are actively looking for
new products and trends. This demographic group is crucial for the
e-commerce market.
Legal Framework regarding the E-Commerce Market in Vietnam
Decrees 52/2013/ND-CP and 85/2021/ND-CP are the central provisions
for regulating the e-commerce market. According to Article 25 of
Decree 52/2013/ND-CP, e-commerce platforms can be broken down into
the following:
1. Sales E-Commerce Website
A sales e-commerce website is an e-commerce website developed by
traders, organizations or individuals by themselves to serve their
commercial promotion, sales or service provision.
2. E-Commerce Service Provision Website
An e-commerce service provision website is an e-commerce website
developed by traders or organizations to provide an environment for
other traders, organizations or individuals to conduct their
commercial activities. An e-commerce service provision website
could be of the following types:
– e-commerce trading floor
– online auction website
– online promotion website
Cross-Border E-Commerce Activities
Until 2021, there was uncertainty regarding the scope of Decree
52/2013/ND-CP in the context of cross-border e-commerce activities.
Subject to this decree were only foreign individuals and
organizations that have a presence in Vietnam, or have websites
under the Vietnamese domain name. Consequently, there was a great
deal of legal uncertainty for foreign individuals or organisations
who conducted e-commerce activities despite not having a branch or
operating under a Vietnamese domain name. To address this
situation, Decree 85/2021/ND-CP was issued, which amended and
supplemented some of the regulations of Decree 52/2013/ND-CP and
introduced further regulations regarding transparency and social
networks.
1. Applicability to foreign investors, traders and
organisations
With the issuance of Decree 85/2021/ND-CP, it was clarified that
Regulation 52/2013/ND-CP is fully applicable to all foreign
individuals and organisations that engage in e-commerce activities.
A branch is no longer required for application, instead depends on
whether
– Foreign traders and organizations having websites providing
e-commerce services in Vietnam, including (i) websites with a
Vietnamese domain name (.vn), or (ii) websites with Vietnamese
display language, or (iii) website have over 100,000 transactions
from Vietnam per year.
– Foreign traders and organizations selling goods on
Vietnamese e-commerce exchanges.
– Foreign investors invest directly in Vietnam in the field
of e-commerce services. This changed with the enactment of Decree
85/2021/ND-CP, which, in addition to amendments to Decree
52/2013/ND-CP, also introduced regulations regarding transparency
obligations and social networks.
2. Transparency
Stricter transparency requirements now apply to goods and services
offered on e-commerce platforms, such as product labeling or
information on license and/or certificates showing the satisfaction
of business conditions in the case of conditional business
3. Social Networks
Furthermore, social networks will be classified as e-commerce
platforms if they fulfil one of the following requirements:
– allowing users to open booths for displaying/promoting
their goods or services. Service
– allowing users to open accounts to carry out the conclusion
of contracts with customers
– having a trading section that allows users to post goods
and services for sales
Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.
