Vietnam's National Assembly passes Law on E-commerce

The law is expected to create a strict, modern and practical legal framework, contributing to a stronger, more transparent and more sustainable development of the e-commerce sector.

It requires the identification of sellers on e-commerce platforms through the national VNeID digital identification system, which helps trace sellers, limit counterfeit goods and intellectual property violations, and enables tax authorities to manage more effectively and prevent losses to the state budget.

The law does not warrant foreign e-commerce platforms operating in the country to set up a new legal entity, but they must designate a legal entity in the country to fulfill relevant obligations to ensure consistency with global commitments, while offering regulators a distinct point of contact to protect consumer rights and address violations, according to domestic media reports.

The domestic retail e-commerce value is expected to exceed $40 billion this year, placing the country among the world's top five fastest-growing e-commerce markets, with annual growth of 20-25 per cent, according to the Vietnam E-commerce Association.

E-commerce now accounts for around 10 per cent of the nation's total retail and consumer services revenue, ranking third in Southeast Asia. By 2030, the market is projected to grow to nearly $63 billion.

ALCHEMPro News Desk (DS)