The draft e-commerce law and new cyberspace decree impose stricter platform liability and regulation on domain dispute resolution.
Vietnam is on the brink of a significant transformation in its e-commerce landscape. With market forecasts projecting the e-commerce sector to hit $63 billion by 2030, it has emerged as the second-largest e-commerce market in Southeast Asia. The current growth trajectory, reported at an impressive annual rate of 18% to 25% by the Vietnam E-Commerce and Digital Economy Agency, indicates that the market is set to surpass $25 billion in size by 2024. This rapid expansion signifies both opportunities and challenges as the Vietnamese government takes steps to address the regulatory gaps that are becoming evident in this dynamic environment.
Introducing the Draft E-Commerce Law
In January 2025, the Ministry of Industry and Trade (MoIT) unveiled a proposal for the country’s first comprehensive e-commerce law. The need for such legislation stems from the realization that existing regulatory frameworks have struggled to keep pace with evolving digital business models and recent legal amendments, such as the Consumer Protection Law 2023 and the Amended IP Law 2022. Consequently, a more robust legal framework is critical for facilitating the sustainable growth of Vietnam’s digital economy.
The draft outline of the e-commerce law introduces five policy pillars, focusing primarily on tightening the responsibilities of e-commerce platforms and sellers. Some of the key provisions include:
- Stricter Accountability for Platforms: E-commerce platforms will now bear increased responsibility for the activities of sellers operating on their platforms. This includes verifying seller identities and ensuring transparency in business operations and products.
- Enhanced Compliance Measures for Sellers: Sellers will be required to complete electronic identification processes and disclose full business details, such as trade names, addresses, tax codes, and personal identification numbers.
Under Articles 19 and 20, platforms must also implement more rigorous content screening processes and cooperate with authorities during investigations. This collaborative approach aims to ensure that infringements are handled promptly, with platforms and sellers sharing the responsibility for damages in cases of non-compliance.
Although the draft outline is still under review, it underscores Vietnam’s commitment to addressing intellectual property (IP) concerns in e-commerce. The increased accountability for platforms and sellers should facilitate brand owners in identifying and mitigating infringing activities more effectively.
Regulations Under Decree 147
On December 25, 2024, Decree 147/2024/ND-CP was introduced, bringing forth vital regulations concerning internet services and cyberspace information management. One significant aspect of this decree is the reform of domain name dispute resolution mechanisms, alongside enhancing the user verification requirements for social media platforms.
Previously, resolving domain name disputes was limited to negotiation, mediation, arbitration, or civil litigation. Decree 147 has broadened this scope, allowing for administrative sanctions where competent authorities can now revoke “.vn” domain names for IP violations. This shift aims to streamline dispute resolution and empower rights holders to take action against infringement.
The decree clarifies the conditions under which domain name disputes can be pursued. To resolve a dispute, three criteria must be met:
- There must be a similarity between the disputed domain name and the plaintiff’s trademark, trade name, or personal name.
- The defendant should lack legitimate rights to the domain.
- There should be evidence of bad faith on the part of the defendant.
Furthermore, Decree 147 introduces stricter user verification requirements for foreign platforms which have over 100,000 visits from Vietnam monthly. Users engaged in commercial activities, such as livestream sales, need to verify their identities using personal identification numbers. Only verified accounts will be permitted to engage in publishing, commenting, or sharing content, thereby reinforcing accountability and reducing anonymity.
Challenges Ahead for Rights Holders
The e-commerce law is still in its development stage and is expected to undergo significant revisions before it comes into effect. Additionally, further guidance on the implementation of Decree 147 is anticipated shortly. As the Vietnamese government undergoes restructuring, this shift may have a pronounced effect on enforcement agencies and their operational efficiency.
For rights holders, these developments come with a need for proactive adaptation. Strategies to consider include:
- Engagement with E-Commerce Platforms: Collaborating with platforms to identify and remove infringing goods is crucial for effective enforcement.
- Partnerships with Authorities: Building relationships with regulatory bodies and industry groups can strengthen enforcement efforts against IP infringement.
- Regulatory Monitoring: Keeping abreast of changes in the regulatory landscape will ensure compliance and enable timely responses to new challenges.
The unfolding changes in Vietnam’s regulatory environment for e-commerce signify a concerted effort to bolster protections for rights holders while addressing the realities of a rapidly digitalizing economy. As the government refines its legal framework, staying ahead in compliance and adaptation will be essential for businesses aiming to thrive in this evolving market.
Authors: Yen Vu, Uyen Doan, Nguyet Nguyen
This article was first published on WTR in March 2025.