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Proposal: Cross-Border Online Retail Platforms Must Have Representation in Vietnam

Writer's picture: Hieu DoHieu Do

Cross-border e-commerce platforms entering the Vietnamese market will need to obtain licenses and establish representative offices, according to a proposal from the Ministry of Industry and Trade.

Under current regulations, cross-border online retail platforms with Vietnamese domain names, Vietnamese language interfaces, or more than 100,000 transactions annually originating from Vietnam must register with the Ministry of Industry and Trade. Last year, platforms such as Temu and Shein, which had not registered in Vietnam, still allowed users to download their apps, make purchases, and pay using their Vietnamese-language versions.

To tighten management, a draft framework for the E-Commerce Law, currently under public consultation, suggests that businesses and organizations engaging in cross-border e-commerce in Vietnam must seek approval from the Ministry of Industry and Trade. They will also be required to establish representative offices in Vietnam or appoint authorized representatives that are legal entities within the country.

Cross-border retail platforms will be prohibited from selling goods or providing services if they fail to complete the necessary procedures with the e-commerce regulatory authority.

Service providers supporting e-commerce activities (such as intermediaries, logistics, and payment services) will also be barred from cooperating with platforms that do not meet Vietnam’s operating conditions, according to the draft.

The Ministry of Industry and Trade explained that the proposed E-Commerce Law would define the responsibilities of representative offices or authorized legal entities in Vietnam to ensure consumer rights are protected. Operators will be required to establish mechanisms for verifying foreign sellers and compensating buyers in the event of violations on the platform.


Credit: Shutterstock.

Vietnam’s e-commerce market ranks third in Southeast Asia by scale and fifth globally in terms of growth rate. The retail market has grown rapidly, from $2.97 billion in 2014 to over $25 billion today. This represents an average annual growth rate of 20-30%, contributing 8% of the country’s total retail goods and services revenue.

However, the sector is currently governed by two government decrees, which, according to the Ministry, are insufficient to address critical issues in e-commerce. The emergence of new models, such as cross-border e-commerce, has further complicated management.

Moreover, current regulations for cross-border platforms are "lighter" compared to those for official domestic e-commerce platforms, creating unfair competition. Agencies like customs, tax authorities, and market regulators also lack effective coordination mechanisms.

In addition to cross-border platforms, new models like livestream selling are only broadly regulated as a form of advertising accompanying sales activities. There are no specific regulations regarding the participants, minimum information required for viewers, or account identification.

Currently, over 60% of Vietnam’s population participates in e-commerce, with an average annual shopping expenditure of approximately $400 per person. Therefore, the Ministry emphasized that the E-Commerce Law is essential to support market development, protect stakeholders’ rights, and drive Vietnam’s digital economy growth.

Globally, many countries, including Malaysia, Cambodia, China, and Ireland, have enacted e-commerce laws. Some, such as the European Commission, regulate the field through specific documents. Others, like Japan, South Korea, and India, approach the issue through user protection laws.


Source: VNExpress

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