Overview of Decree 85\/2021 regarding e-commerce on social networks
\nEffective from January 1, 2022, Decree 85\/2021 provides significant amendments impacting foreign investors in Vietnam\u2019s e-commerce sector, particularly in areas involving social networks that facilitate transactions between businesses and consumers. Below, we summarize key provisions affecting e-commerce operations via social networks<\/p>\n
Social network as e-commerce trading platform
\nUnder Decree 85\/2021, a social network is classified as an e-commerce trading platform if it meets the following criteria:
\n1. Platform Activities: The network allows users to (i) open online shops to display or introduce goods\/services, (ii) open accounts to contract with customers, or (iii) host shopping sections where users post sales information.
\n2. Payment of Fees: Users on the platform, directly or indirectly, pay fees to engage in the activities above.<\/p>\n
Responsibilities of E-commerce Trading Platform Providers
\nRegistration for e-commerce trading platform. To provide e-commerce services in Vietnam, foreign entities must register with the Ministry of Industry and Trade. Without its commercial presence in Vietnam, these entities must establish a representative office or appoint an authorized representative in the country.
\nE-commerce trading platform obligations. Decree 85\/2021 outlines critical responsibilities for e-commerce platforms, including:
\n1. Regulatory Contact Point: Designate a contact to receive and respond to regulatory information requests about legal violations, with a 24-hour response time.
\n2. Representation of Foreign Sellers: Represent foreign sellers on the platform in consumer complaint resolution and notify tax obligations for these sellers.
\n3. Consumer Complaint Handling: Act as a point of contact for consumer complaints in transactions involving multiple parties.
\n4. Order Record Retention: Retain records of orders as required by the Law on Accounting.
\n5. Liability for Damages: Jointly compensate for damages arising from failure to address legal violations on the platform.<\/p>\n
Market access conditions for foreign investors in e-commerce trading platform
\nFor foreign investors aiming to establish a commercial presence, Decree 85\/2021 imposes two conditions
\na. Investment Forms: Foreign investors may only invest through a new or existing company in Vietnam, with other structures (e.g., business cooperation contracts) not permitted; and
\nb. National Security Appraisal: If the foreign investor holds control over one or more of the top five e-commerce companies in Vietnam (as identified by the Ministry of Industry and Trade), an appraisal by the Ministry of Public Security is required.
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\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":"
Overview of Decree 85\/2021 regarding e-commerce on social networks Effective from January 1, 2022, Decree 85\/2021 provides significant amendments impacting foreign investors in Vietnam\u2019s e-commerce sector, particularly in areas involving social networks that facilitate transactions between businesses and consumers. Below, we summarize key provisions affecting e-commerce operations via social networks Social network as e-commerce trading … <\/p>\n