In February 2025, Vietnam’s Ministry of Industry and Trade proposed a draft law aimed at regulating cross-border e-commerce to protect consumers and ensure fair competition. The proposed legislation mandates that foreign e-commerce businesses operating in Vietnam must register and obtain an operating license from the Ministry. Additionally, these businesses are required to establish a local representative office or appoint an authorized legal entity within the country. Non-compliance could result in bans on selling goods and providing services, and supporting service providers—such as intermediaries, transport, and payment services—would be prohibited from collaborating with unregistered platforms.
The draft law outlines responsibilities for local representatives to safeguard consumer rights and promote fairness for domestic enterprises. This includes increased accountability for monitoring foreign sellers and compensating buyers in cases of violations. The initiative responds to Vietnam’s rapidly growing e-commerce market, which was valued at over $25 billion in 2024, marking a nearly 20% increase from the previous year. This surge has highlighted the necessity for updated regulations to protect both consumers and businesses.
The Ministry is currently soliciting feedback on the draft law from various stakeholders to enhance e-commerce management efficiency. Existing regulations require e-commerce platforms in Vietnam to have a Vietnamese domain name or display content in Vietnamese, and platforms with over 100,000 transactions annually must register with the Ministry. Notably, platforms like China’s Temu and Shein had not registered as of 2024 but continued to operate, prompting the need for stricter enforcement.
The proposed law also stipulates that foreign goods and services sold in Vietnam must adhere to local standards and regulations to protect consumers and foster fair competition. With over 60% of Vietnam’s population engaging in e-commerce and an average annual purchase value of approximately $400 per person, the legislation aims to support the market’s development, uphold consumer rights, and promote sustainable growth in the digital economy.
This move aligns Vietnam with other countries that have implemented e-commerce regulations, such as Malaysia, Cambodia, China, and Ireland. The European Union has specific regulations in this sector, while nations like Japan, South Korea, and India have developed laws focusing on user protection. The draft law signifies Vietnam’s commitment to adapting its regulatory framework in response to technological advancements and evolving business models in the e-commerce sector.
Cre: Vietnam proposes law to regulate foreign e-commerce and protect consumers
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