KOLs in Vietnam penalized for misleading advertisements and counterfeit sales.

In a significant move to enhance transparency and accountability in Vietnam’s e-commerce sector, Nguyen Huu Tuan, the Director of the Center for E-commerce Development under the Ministry of Industry and Trade, announced that e-commerce platforms must retain livestream data for a period of three years. This requirement is critical for providing reference evidence in the event of disputes or violations.

During an event held on June 25, 2025, the Center for E-commerce and Digital Technology Development partnered with TikTok Shop to launch a comprehensive legal training program tailored for e-commerce. Tuan emphasized the essential balance between creativity and sustainability, asserting that the latter can only be achieved through ethical practices and adherence to the law.

According to Tuan, “Business ethics are about transparency with customers. Legal compliance is the foundation of a fair and transparent e-commerce environment.” He voiced concerns regarding the need for a robust understanding of various laws, tax obligations, and the importance of honest advertising—all vital components for building credibility and ensuring long-term success in the e-commerce space.

Vietnam’s legal framework governing e-commerce has evolved significantly and now includes a set of core regulatory documents. Tuan outlined four vital principles that sellers must adhere to for ethical operation on e-commerce platforms:

1. Tax and Fee Policies: Sellers must fully comprehend and agree to the tax and fee policies laid out by the platform they operate on.
2. Scope of Operations: Clear definition of operational scope is imperative. A lack of specificity could lead buyers to assume nationwide coverage.
3. Product Accountability: Sellers are responsible for their products and must comply with Decree 85, which mandates shared liability.
4. Conditional Business Sectors: With 227 conditional business sectors in place, sellers must fulfill the legal requirements relevant to their industry. For instance, selling alcohol necessitates a specific license.

Tuan made it clear that engaging in e-commerce merely simplifies the ordering process and does not exempt sellers from fulfilling legal business conditions.

In addition to the principles outlined, Tuan introduced a new regulatory requirement stipulating that e-commerce platforms must retain livestream data for three years. This data serves not only as a safeguard for auditing and investigation but also mandates that sellers provide comprehensive product information and sales policies. Furthermore, foreign sellers must present legalized documentation to operate within Vietnamese e-commerce platforms.

Failure to collect adequate seller information can result in penalties for the platforms themselves. Moreover, Key Opinion Leaders (KOLs) promoting counterfeit products could face criminal charges, leading to professional activity bans for up to three years. Tuan also emphasized that influencers are now obliged to demand complete and transparent sponsorship disclosures, reinforcing the shared accountability for false advertising.

Shifting focus to taxation, Nguyen Viet Hoa, Head of Tax Department No. 2, underscored the necessity for ongoing updates to Vietnam’s e-commerce tax framework. Given the rapid evolution of digital trade and cross-border commerce, it’s critical that platforms declare and withhold taxes on behalf of their sellers.

At the event, Nguyen Thi Cam Giang from TikTok Shop stated, “Strict internal policies on content, advertising, and sales are essential for sustainable growth. All content must be truthful, non-misleading, and respect intellectual property rights.” This reflects a growing commitment among platforms to create an ethical marketplace.

Nguyen Lam Thanh, representing TikTok Vietnam, added, “TikTok Shop not only provides growth tools but also collaborates with government agencies to equip sellers and creators with solid legal knowledge in our ecosystem.” This partnership is crucial for fostering an informed e-commerce community that values integrity and compliance.

Thai Khang