Proposal for cross-border e-commerce platforms to establish representative offices in Vietnam

Current regulations require cross-border retail e-commerce platforms that have a Vietnamese domain name, display content in Vietnamese, or conduct over 100,000 transactions per year from Vietnam to register with the Ministry of Industry and Trade.

However, in 2024, some cross-border e-commerce platforms such as Temu and Shein have yet to register in Vietnam but still allow users to download their applications, make purchases, and process payments on these platforms in the Vietnamese language version.

Therefore, in the draft outline for the E-Commerce Law currently under review, the Ministry of Industry and Trade has proposed that businesses and organizations engaged in cross-border e-commerce in Vietnam must obtain a license from the Ministry. Additionally, they must establish a representative office in Vietnam or designate an authorized representative who is a legal entity in the country.

Ensuring Consumer Rights and Strengthening Tax Collection

The ministry also specifies the responsibilities of the representative office or authorized legal entity in Vietnam to ensure consumer rights. These responsibilities include verifying foreign sellers and compensating buyers in case of violations on the platform.

Furthermore, foreign goods sold and services provided in Vietnam must comply with the country's product and service standards.

According to the Ministry of Industry and Trade, stricter identification and management of sellers on e-commerce platforms will enhance tax collection efficiency, reducing tax evasion and fraud. This will contribute to the state budget and create economic and social development resources.

Vietnam’s E-Commerce Market Continues Strong Growth

An E-Commerce and Digital Economy Agency report under the Ministry of Industry and Trade indicates that Vietnam's e-commerce sector continues to grow impressively, maintaining an annual growth rate of 18-25%. In 2024, the market size surpassed $25 billion, a 20% increase compared to 2023, accounting for approximately 9% of total national retail sales and consumer service revenues.

E-commerce contributes two-thirds of Vietnam's digital economy. The growth rate of both e-commerce and the digital economy remains strong in double digits, positioning Vietnam among the top 10 fastest-growing e-commerce markets globally. This trend serves as a driving force for digital economic development and enterprise digital transformation.

Notably, cross-border e-commerce has become a crucial export channel, expanding the market reach for Vietnamese products.

According to Amazon Global Selling Vietnam, over 17 million Vietnamese business products have been exported, with a 50% increase in value and a 40% rise in the number of selling partners. Overall, cross-border e-commerce grew by 26% compared to the previous year.

Despite Decree No. 85/2021/ND-CP issued by the government, which sets initial conditions for cross-border e-commerce service providers entering the Vietnamese market, the existing regulations remain insufficiently strong and comprehensive. As a result, many cross-border e-commerce platforms operate in Vietnam without fully completing the necessary legal procedures.

Source: cafef