Navigating the Digital Marketplace: Opinion of E-commerce Lawyers in Vietnam

In today’s rapidly evolving digital landscape, e-commerce has become an integral part of global trade and business. With the rise of online marketplaces, digital storefronts, and cross-border transactions, the world of commerce has undergone a paradigm shift. Vietnam, a burgeoning Southeast Asian economy, is no exception to this transformative wave. As e-commerce continues to gain momentum in the country, the role of e-commerce lawyers in Vietnam becomes increasingly critical.

E-commerce legal landscape in Vietnam

There is expectation of laws that fill the missing gap for foreign investors with particulars in conducting e-commerce activities in Vietnam which supplemented regulations on management of e-commerce activities for foreign investors setting up business in Vietnam.

Specifically, there is a draft decree to supplement Decree 52/2013/ND-CP that (i) adds specific regulations on foreign traders and organizations conducting e-commerce activities in Vietnam; (ii) supplements market access conditions for foreign investors in accordance with the Law on Investment; and (iii) provides the exclusion of foreign investors investing in economic organizations that are innovative and creative enterprises in order to promote innovation activities in accordance with the law on support small and medium enterprises.

In particular, the draft decree also provides plans for e-commerce activities of foreign investors in Vietnam. According to the draft decree, foreign investors can set up an e-commerce website under the Vietnamese domain name or an e-commerce website with the display language in Vietnamese. The option of setting up an e-commerce exchange floor with a specified number of transactions from Vietnam in a year is also considered for selection.

In addition, foreign investors setting up e-commerce websites in Vietnam must notify and register e-commerce activities according to regulations. At the same time, they need to ensure the fulfillment of obligations on protection the interests of consumers. The quality of the goods need to be protected by their representative office, designation of a legal representative in Vietnam.

Foreign investors selling goods on Vietnamese e-commerce exchanges must comply with the operating regulations of e-commerce exchanges in Vietnam. When providing Vietnam e-commerce exchanges, foreign investors are responsible for verifying their identities. In addition, foreign investors conducting e-commerce activities are responsible for complying with the provisions of Vietnamese law on the right to export and import goods in accordance with the laws.

The draft decree also specifies that e-commerce service is a conditional market access industry for foreign investors. Market access conditions will also be considered accordingly. In addition, the control and domination of enterprises providing e-commerce services are also clearly regulated.

In the coming time, Vietnam will continue to receive comments to supplement and complete the draft of decree amending Decree 52 on e-commerce activities. It is important to create a clear and appropriate e-commerce operating environment to attract foreign investors with experience and capability to invest, set up company and operate in Vietnam in the area of e-commerce to facilitate goods transaction, protect intellectual property, reduce cost. However, it is also equally important to ensure the management of investment activities of foreign investors in the field of e-commerce in Vietnam. 

How E-commerce Lawyers in Vietnam Matter?

The E-Commerce Boom in Vietnam

Vietnam has experienced a remarkable surge in e-commerce activities over the past decade. Factors such as increased internet penetration, a tech-savvy population, and growing consumer trust in online platforms have contributed to this boom. As a result, both local entrepreneurs and international businesses are eager to tap into the Vietnamese e-commerce market.

However, the dynamic nature of e-commerce brings forth an array of legal complexities and challenges. From data privacy concerns and consumer protection issues to intellectual property disputes and regulatory compliance, the e-commerce sector in Vietnam demands adept legal guidance.

Navigating Regulatory Frameworks

One of the primary reasons why e-commerce lawyers in Vietnam matter is the intricate web of regulations governing this industry. Navigating these frameworks effectively can be a daunting task for businesses, especially those unfamiliar with the local legal landscape.

E-commerce lawyers in Vietnam can play a pivotal role in helping businesses comprehend and comply with Vietnam’s e-commerce laws and regulations. They provide insights into critical aspects such as online advertising rules, e-payment systems, and taxation of e-commerce transactions. With their expertise, businesses can ensure that their operations align with Vietnamese laws, minimizing legal risks and liabilities.

Protecting Intellectual Property Rights

In the digital realm, protecting intellectual property rights is paramount. E-commerce platforms are vulnerable to various forms of infringement, including counterfeiting, trademark violations, and copyright disputes. E-commerce lawyers in Vietnam specialize in safeguarding these rights, ensuring that businesses can operate on a level playing field.

They help businesses register trademarks, enforce copyright protections, and take action against counterfeit products. In doing so, they create an environment where businesses can thrive without the constant threat of intellectual property theft.

Data Privacy and Security

The issue of data privacy and security has gained prominence globally, and Vietnam is no exception. With the implementation of regulations like the Law on Cybersecurity and personal data protection laws, ensuring compliance is essential for e-commerce businesses.

E-commerce lawyers in Vietnam assist businesses in crafting robust data protection strategies, drafting privacy policies, and ensuring compliance with Vietnam’s evolving data protection framework. This is crucial for maintaining consumer trust and avoiding potentially crippling legal repercussions.

Resolving Disputes

Disputes are an inevitable part of any business landscape, and e-commerce is no different. Whether it’s conflicts with customers, suppliers, or other businesses, having skilled e-commerce lawyers in Vietnam by your side can make all the difference.

These legal experts are adept at dispute resolution through negotiation, mediation, or litigation if necessary. Their ability to navigate both online and offline disputes ensures that businesses can resolve conflicts efficiently and effectively.

In the age of digital commerce, the role of e-commerce lawyers in Vietnam cannot be overstated. They serve as guardians of legal compliance, protectors of intellectual property, and facilitators of smooth business operations. For any business looking to thrive in Vietnam’s vibrant e-commerce landscape, partnering with knowledgeable e-commerce lawyers in Vietnam is not just a choice; it’s a necessity. In a world where every click matters, these legal professionals are the keystones to sustainable success.

About ANT Lawyers, a law firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi,  and Danang, and will help customers in doing business in Vietnam.

Potential risk of online transaction in Vietnam and its consequences

The 4.0 Industrial Revolution has developed significantly, which results in the transformation and breakthrough of all areas of the globe. Besides, the Internet and social network has got more popular and become an indispensable part of modern life. Online business, therefore, is formed and conducted the most frequently on social networking platforms. In the process of doing online business on this platform, many potential risks arise and depending on the situation, the people taking part in the transaction might need to involve the business consultant or risk management consultant to assist proving advice or consultancy service to address the matters.

First and foremost, it is very difficult and complicated to determine the identity of the subjects partaking in the social networking platforms in general and conducting business activities on these platforms in particular. Unlike e-commerce platforms which register operation with authorities, which require the sellers to verify their information before doing business, the social network environment allows anyone to participate in without revealing their true identities exposed. User will have an account that may or may not provide their true information after only a few basic registration procedures. As a result, many people have taken advantage of this feature of social networks to commit illegal acts in business activities. There are instances in Vietnam for fraud to appropriate property on a social network which the offender using an account on a popular social network with a fake name, using other people’s photos as his avatar.  Next, he bought a fake ID card and used it to set up some bank accounts to start committing fraud. Although he did not have products for sale, but he still posted ads with pictures of selling products at cheap prices on his social network account. If customers wanted to buy, he asked them to transfer money first and promised to send the products to them by post soon after. However, when receiving the money from the customer, he did not send the goods and temporarily locked his account.  Beside fraudulent activities, seller’s information is not checked or confirmed, allowing unscrupulous people to readily impersonate others for profit. It is not unusual for prominent business professionals or influencers to be faked on social networking platforms. This action jeopardizes the honor and reputation of those who are exploited while also affecting a large number of legitimate business people. Thus, the fact that social networks do not require business entities to verify their identities, despite helping conduct business procedures quickly and conveniently, causes many problems mentioned before, directly affecting the right to conduct business, benefit customers and stakeholders.

Secondly, no authorities have the possibility to guarantee absolutely the quality of items traded on social networks. The goods listed for sale are extremely diverse in quantity, type and design. Each business subject can sell hundreds of products per day and there are many business subjects on one social networking platform. Therefore, governmental agencies are unable to oversee and manage the origin and quality of each product and service. Many of goods for sales are prohibited or barred from trading. At the same time, sellers can sell fake goods, counterfeit, provide poor-quality ones or sell unknown-origin ones to customers in order to maximize profits. The most serious consequence of trading in unqualified goods is affecting the health of customers.

Thirdly, although Vietnamlaw imposes taxs on business subjects, it is difficult to collect taxes from organizations and individuals conducting business on social networks. That reduces state revenue and creates an unfavorable competitive climate for other sorts of enterprises. The reason is that business on social networks is based on technology, and it is easy to modify and delete information online, so it creates difficulties in identifying and verifying the number of business people and capturing transactions.  This situation can be characterized as unfair competition, which is upsetting and unstable for the economy.

Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.

What Are Conditions for E-commerce Business in Vietnam?

E-commerce business in Vietnam is conditional business area.

Currently, in the context of increasingly developing technology, online transactions are also taking place more often, quickly and conveniently, and the connection between buyers and sellers has become no longer a distance. But how to set up e-commerce business in Vietnam? E-commerce lawyer in Vietnam will share some ideas below on conditions to set up e-commerce business in Vietnam and other matters.

The number of enterprises doing their business in the field of e-commerce has increased significantly in recent years. Many foreign investors are also eyeing Vietnam for investment. The question is to how to set up e-commerce business in Vietnam taking advantage of the growing market and in the meantime recruiting technology talents from Vietnam for their e-commerce business which has the potential to tap on global market.

In Vietnam, e-commerce activity means conducting part or the whole of the process of commercial activity by electronic means connected to the Internet, mobile telecommunications network or other open networks.

The forms of organization of e-commerce activities includes:

1. Sales conducted thorough e-commerce website: It 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: It 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. The e-commerce service provision website includes: E-commerce trading floor; Online auction website; Online promotion website and other types of website as regulated by the Vietnam Ministry of Industry and Trade.

How to set up e-commerce business in Vietnam?

The Law on Investment in Vietnam stipulates that e-commerce business is one of the conditional business lines. Therefore, if an enterprise wishes to set up e-commerce company in Vietnam, register and conduct business activities in this field, it must meet the following conditions:

Traders, organizations and individuals wishing to set up sales e-commerce websites must be traders, organizations or individuals who have been granted personal tax identification numbers; Having websites with valid domain names and complying with regulations on management of information on the Internet and having notified the Ministry of Industry and Trade of the set-up of sales e-commerce websites.

In order to conduct business activities based on websites providing e-commerce services, traders and organizations need to be registered for business at a competent agency in accordance with law and have websites with valid domain names and complying with regulations on management of information on the Internet.

In addition, traders and organizations also need to have a service provision project which clearly states the following contents: (i) Model of organization of operations, including service provision, promotion and marketing both online and offline; (ii) Structure, utilities and main information sections on the service website; (iii) Rights and responsibilities of the trader or organization providing e-commerce services and service users.

Enterprises that wishes to do e-commerce business need to register to set up a website to provide e-commerce services and be certified by the Ministry of Industry and Trade to register in accordance with the law.

Further, the enterprises also have to apply for investment registration certificate and business registration certificate in Vietnam at the Department of Planning and Investment.

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