HÀ NỘI — Việt Nam’s new draft law on e-commerce will tighten regulations for livestream sellers, making them more accountable for the authenticity, quality and origin of goods sold online.

The draft, which was discussed at the National Assembly’s Standing Committee on Monday, requires domestic online sellers, livestreamers and affiliate marketers to verify their identities through the Government’s VNeID digital platform, according to the Ministry of Industry and Trade.

E-commerce platform operators would also be responsible for verifying the identities of domestic sellers via VNeID and implementing real-time monitoring on livestreamers under the new law.

The draft also requires affiliate marketers to be identified by their service providers, with mechanisms to track and supervise their operations and remove illegal links.

Livestreamers and affiliate marketers would be banned from giving false or misleading information about products, services or promotions and from promoting products on digital platforms not legally eligible to operate in Việt Nam.

The draft also regulates the equal responsibility of overseas sellers and those within the country to ensure fairness, requiring them to provide identification and investment documents before conducting sales on platforms.

“The law will help ensure transparency, protect consumer rights and provide a clearer legal framework for players,” Deputy Minister of Industry and Trade Nguyễn Sinh Nhật Tân said.

Urgent issue

Việt Nam must quickly issue the law on e-commerce to better regulate the booming sector, which ranked third in Southeast Asia by market size in 2024 and fifth globally in growth in 2022, Tân said.

The retail e-commerce market expanded rapidly from just under US$3 billion in 2014 to $25 billion in 2024, accounting for 10 per cent of the total consumer goods and services retail sales, with an average annual growth rate of 20-30 per cent.

Burgeoning technology and new business models have revealed shortcomings in the regulatory framework, including fragmentation and lack of consistency. Emerging trends such as super apps, big data, artificial intelligence and livestreams currently remain unregulated, leading to risks of personal data misuse, unfair competition, tax loss, false advertising, fraud and intellectual property infringement.

Automated contracts have also appeared, but lack a clear legal framework.

Meanwhile, the private sector, which contributes around 50 per cent of GDP and over 30 per cent of State budget revenue, has an urgent need for an e-commerce regulatory framework to take advantage of online sales to enhance competitiveness, according to Tân.

Tân also pointed out that countries like China, Malaysia, the Philippines and Cambodia had introduced e-commerce laws. The US had issued an e-commerce directive and, more recently, the Digital Services Act. Japan and the Republic of Korea had separate laws on protecting online consumers.

Passing the law on e-commerce had become a pressing issue, Tân said.

According to Chairman of the National Assembly’s Economic and Financial Committee Phan Văn Mãi, to better protect consumers, prevent tax losses and control counterfeiting, e-commerce management should not rely solely on the law on e-commerce. Instead, a comprehensive legal framework and stronger enforcement are required.

Mãi urged reviews to be carried out to prevent overlaps and inconsistencies or additional administrative procedures in the draft law.

According to Lê Quang Huy, chairman of the National Assembly’s Committee on Science, Technology and Environment, there are three key issues for e-commerce development: a robust digital payment system, consumer confidence in the digital environment and logistics infrastructure. These issues are relevant to a number of laws including banking, credit and consumer protection, which would require careful consideration.

Huy also urged more specific regulations to promote sustainable and green e-commerce, adding that online selling generates significant packaging waste.

Chairman of the Committee on National Defence, Security and Foreign Affairs Lê Tấn Tới emphasised the need to address cybersecurity and data protection in e-commerce.

Regulations on the control and transactions of goods subject to prerequisites or prohibitions, as well as issues related to anti-money laundering, personal data and State secrets must be studied carefully, he said.

Meanwhile, Chairman of the Ethnic Council Lâm Văn Mẫn urged stronger policies to develop digital and e-commerce infrastructure in remote, border, island and ethnic minority areas.

The law on e-commerce should encourage entrepreneurship, innovation and the participation of the private sector, Mẫn said.

Vice Chairman of the National Assembly Vũ Hồng Thanh requested further revisions to ensure consistency with Party resolutions on private sector development, innovation and digital transformation as well as other laws.

The draft law includes eight chapters and 50 articles, regulating types and responsibilities of entities engaged in e-commerce, e-commerce platforms, cross-border e-commerce without a physical presence in Việt Nam, foreign investment in Việt Nam’s e-commerce, overseas sellers operating in Việt Nam, e-commerce support services, contract formation in e-commerce and green and sustainable e-commerce.

The law is expected to be submitted to the National Assembly for revision at the meeting in October.  — VNS