HÀ NỘI — The amended E-Commerce Law that takes effect from July 1, 2026, is expected to tighten livestream selling – one of the fastest-growing sales channels in the country. 

More than just a tool for boosting consumption, the livestream activities are increasingly becoming fertile ground for commercial fraud, misleading advertising and the sale of counterfeit goods, prompting regulators to bring the activity under a more robust legal framework.

Over the past few years, livestream selling activities have expanded at an extraordinary pace, particularly across social media platforms and e-commerce marketplaces. With nothing more than a smartphone, anyone can become a seller, reaching thousands or even millions of consumers.

Its convenience, high level of interaction, and ability to generate instant purchases have made livestreaming a highly effective business tool. Some livestream sessions have generated revenues worth billions of Vietnamese đồng within just a few hours. However, this ease of access has also contributed to increasing disorder in the marketplace.

Numerous cases have involved the sale of products with unclear origins, counterfeit or imitation goods, and exaggerated product claims. Consumers are often swept up by crowd psychology and the fear of missing out, leading them to make purchasing decisions without adequate verification.

According to Vũ Bảo Thắng, deputy head of Human Resource Development at the Vietnam E-Commerce Association, livestream selling has blurred the line between advertising and direct sales. Sellers simultaneously act as consultants and advertisers, while existing content-monitoring mechanisms have struggled to keep pace with market realities.

The amended E-Commerce Law is expected to establish a clearer legal framework for these activities. Under the new regulations, individuals and organisations conducting livestream sales will be required to provide comprehensive product information, assume responsibility for advertising content, retain transaction data and cooperate with authorities when requested.

Intermediary platforms will also face greater scrutiny. They will be required to strengthen monitoring mechanisms, identify violations, and take corrective action. This aims to address the long-standing issue of lax oversight, where many platforms have functioned merely as infrastructure providers without adequately controlling content.

Nguyễn Thu Hương, a consumer in Hà Nội, said that online shopping has become part of her daily routine, although concerns about product quality and personal data security remain.

If the new law helps verify sellers more effectively, increases the responsibility of e-commerce platforms and strengthens personal data protection, consumers will feel more confident about shopping online, she said.

Associate Professor Dr Nguyễn Thường Lạng from the School of Trade and International Economics at the National Economics University said that the E-Commerce Law plays a particularly important and foundational role within the legal framework governing digital business activities. It is the first and most fundamental step toward guiding e-commerce development in the right direction, thereby creating momentum for the broader digital economy.

A legal framework for e-commerce is first and foremost designed to ensure that electronic transactions are conducted fairly and transparently while adequately protecting the legitimate rights and interests of all participants, Lạng said. 

In a digital environment where geographical boundaries are increasingly irrelevant and transactions occur almost instantaneously, the absence of clear legal standards can easily lead to unsustainable growth and heightened risks of fraud, disputes, and consumer rights violations, he added.

Moreover, the law also promotes fairness and transparency among all market participants, ranging from large corporations and small- and medium-sized enterprises to individual sellers operating on digital platforms.

At the same time, it helps prevent fraudulent and dishonest practices on e-commerce marketplaces – an increasingly complex challenge as the industry expands faster than the market’s ability to self-regulate.

Lạng emphasised that consumer protection and the safeguarding of national interests are two inseparable pillars of the E-Commerce Law. A rapidly growing but poorly regulated e-commerce market could result in lost tax revenues, increased risks to data security and economic security, and a decline in public trust. 

Conversely, a clear legal framework aligned with international standards can foster a healthier business environment, enhance economic integration, and strengthen national competitiveness.

Long-term business benefits

One of the law’s key provisions is the standardisation of transaction processes, including electronic contracts, payment systems, and transaction data storage. 

According to Lạng, this standardisation will inevitably have a direct impact on operating costs for both the broader economy and individual businesses. All legal regulations require compliance costs.

Businesses will first need to invest in information infrastructure and comprehensive digital management systems capable of connecting with government regulatory systems. 

These investments extend beyond initial implementation, requiring continuous upgrades to keep pace with rapid advances in digital technology, artificial intelligence, and big data.

In the short term, these requirements will increase both fixed and recurring costs, particularly for newly established businesses. Initial investment expenses will rise, while revenue growth may not immediately offset higher marginal costs, forcing many firms to operate below break-even during their early years.

However, in the long-term, he argues that these investments are both reasonable and necessary. Once systems are operating efficiently and transaction volumes increase, average costs will decline. More importantly, businesses will gain economies of scale – a critical competitive advantage in digital commerce and the digital economy.

Comprehensive digitalisation and strict adherence to standardised processes will shorten transaction times, expand customer reach, and significantly increase transaction volumes, ultimately supporting stronger revenues and higher profit margins.

Lawyer Nguyễn Thanh Hà, chairman of SB LAW Firm, told Công thương (Industry and Trade) newspaper that prior regulations were largely based on decrees and circulars, resulting in a fragmented legal framework that failed to fully address many emerging issues arising from the digital economy.

The new law will clearly define digital business models, including e-commerce marketplaces, intermediary platforms, commercial social networks and cross-border transaction models.

This is particularly important because many new business models have developed far more rapidly than the law could adapt, creating regulatory gaps and challenges in dispute resolution and consumer protection, he said.

The E-Commerce Law also lays the foundation for digital trust, a critical element in all electronic transactions. Through clear provisions on electronic contracts, platform accountability, personal data protection, and information transparency, the law not only safeguards consumers but also provides businesses with greater stability and predictability.

According to Hà, the law will directly affect businesses in areas ranging from digital platform management and cross-border transactions to personal data protection and consumer rights. 

The law also places strong emphasis on combating counterfeit goods, imitation products, intellectual property violations, fraud, and prohibited content. E-commerce platforms will no longer be able to position themselves merely as passive intermediaries. If prohibited goods, counterfeit products, misleading information or intellectual property violations are allowed to persist without effective control measures, platform operators may be held jointly liable. — VNS