E-commerce in Vietnam has boomed in recent years and especially since the Covid-19 pandemic, fuelled by key factors such as progressive government policies and increased middle-income class and fast-growing internet economy. According to the Ministry of Industry and Trade (MOIT), the e-commerce market is expected to reach an estimated value of USD 35 billion by 2025 with annual growth rates of 30%. The most important platforms in Vietnam include:
\n–\tShopee:
\nCurrently one of the leading platforms in Vietnam, known for its user-friendly interface and extensive product range. It often employs aggressive marketing strategies and promotions.
\n–\tLazada
\nA well-established player, Lazada focuses on a wide variety of products and offers a robust logistics network. It is part of Alibaba Group, which enhances its reach and resources.
\n–\tTiki:
\nStarting a book retailer, Tiki has expanded into various categories now. It is known for its fast delivery service and focus on quality.
\n–\tSen \u0110\u1ecf (Sendo):
\nA local platform that has carved out a niche by focusing on smaller businesses and local sellers, offering a variety of goods, from electronics to fashion.
\n–\tTikTok
\nTikTok primarily attracts young users who are actively looking for new products and trends. This demographic group is crucial for the e-commerce market.
\nLegal Framework regarding the E-Commerce Market in Vietnam
\nDecrees 52\/2013\/ND-CP and 85\/2021\/ND-CP are the central provisions for regulating the e-commerce market. According to Article 25 of Decree 52\/2013\/ND-CP, e-commerce platforms can be broken down into the following:
\n1.\tSales E-Commerce Website
\nA sales e-commerce website is an e-commerce website developed by traders, organizations or individuals by themselves to serve their commercial promotion, sales or service provision.
\n2.\tE-Commerce Service Provision Website
\nAn e-commerce service provision website 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. An e-commerce service provision website could be of the following types:
\n–\te-commerce trading floor
\n–\tonline auction website
\n–\tonline promotion website
\nCross-Border E-Commerce Activities
\nUntil 2021, there was uncertainty regarding the scope of Decree 52\/2013\/ND-CP in the context of cross-border e-commerce activities. Subject to this decree were only foreign individuals and organizations that have a presence in Vietnam, or have websites under the Vietnamese domain name. Consequently, there was a great deal of legal uncertainty for foreign individuals or organisations who conducted e-commerce activities despite not having a branch or operating under a Vietnamese domain name. To address this situation, Decree 85\/2021\/ND-CP was issued, which amended and supplemented some of the regulations of Decree 52\/2013\/ND-CP and introduced further regulations regarding transparency and social networks.
\n1.\t Applicability to foreign investors, traders and organisations
\nWith the issuance of Decree 85\/2021\/ND-CP, it was clarified that Regulation 52\/2013\/ND-CP is fully applicable to all foreign individuals and organisations that engage in e-commerce activities. A branch is no longer required for application, instead depends on whether
\n–\tForeign traders and organizations having websites providing e-commerce services in Vietnam, including (i) websites with a Vietnamese domain name (.vn), or (ii) websites with Vietnamese display language, or (iii) website have over 100,000 transactions from Vietnam per year.
\n–\tForeign traders and organizations selling goods on Vietnamese e-commerce exchanges.
\n–\tForeign investors invest directly in Vietnam in the field of e-commerce services. This changed with the enactment of Decree 85\/2021\/ND-CP, which, in addition to amendments to Decree 52\/2013\/ND-CP, also introduced regulations regarding transparency obligations and social networks.
\n2.\tTransparency
\nStricter transparency requirements now apply to goods and services offered on e-commerce platforms, such as product labeling or information on license and\/or certificates showing the satisfaction of business conditions in the case of conditional business
\n3.\tSocial Networks
\nFurthermore, social networks will be classified as e-commerce platforms if they fulfil one of the following requirements:
\n–\tallowing users to open booths for displaying\/promoting their goods or services. Service
\n–\tallowing users to open accounts to carry out the conclusion of contracts with customers
\n–\thaving a trading section that allows users to post goods and services for sales
\n***
\nPlease do not hesitate to contact Dr. Oliver Massmann at omassmann@duanemorris.com if you have any questions. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.<\/p>\n","protected":false},"excerpt":{"rendered":"
E-commerce in Vietnam has boomed in recent years and especially since the Covid-19 pandemic, fuelled by key factors such as progressive government policies and increased middle-income class and fast-growing internet economy. According to the Ministry of Industry and Trade (MOIT), the e-commerce market is expected to reach an estimated value of USD 35 billion by … <\/p>\n