Focus on building trust

Amid the rapid growth of Vietnam’s digital economy, e-commerce has become a key driver of economic development. However, alongside its rapid expansion comes the risk of proliferation of counterfeit products, fraudulent goods, intellectual property infringements, and commercial fraud. These are not only regulatory challenges but also critical issues directly affecting consumer trust.

In response to this urgent need, the draft E-Commerce Law, led by the Ministry of Industry and Trade in close coordination with relevant parliamentary agencies, is being developed to establish a coherent and transparent legal framework that balances the growth of the digital economy with consumer protection.

One of the major concerns of the National Assembly is consumer protection, with the prevention of counterfeit, fraudulent, and infringing goods identified as a top priority. Accordingly, the draft E-Commerce Law clearly defines the responsibilities of intermediary e-commerce platforms in monitoring goods and services transacted on their systems. These responsibilities are integrated with the government’s ongoing programs and initiatives to prevent commercial fraud and protect intellectual property rights.

At the Ministry of Industry and Trade’s regular press conference for Q3/2025, Nguyen Thi Minh Huyen, Deputy Director of the Department of E-Commerce and Digital Economy, stated that the Draft Law introduces mechanisms to control and manage counterfeit, imitation, and IP-infringing goods through seller identification using a Virtual ID (VID). This allows traceability of the flow of goods and transactions, thereby enabling the control of counterfeit, imitation, and IP-infringing products in e-commerce.

The seller identification mechanism via VID - a key technical tool enabling the tracing of the origin and flow of goods in e-commerce is considered a strategic solution to help regulatory authorities monitor sellers’ product and financial flows and promptly detect counterfeit, imitation and IP-infringing goods. VID facilitates proactive, transparent, and data-backed management and handling of violations in the digital environment.

Furthermore, the draft Law also emphasizes regulation of emerging business models such as livestream selling, which is rapidly expanding but carries high fraud risks. The new provisions require individuals conducting livestream sales and marketing to be identified, monitored, and held legally accountable. This ensures that new commercial models operate within a transparent regulatory framework, preventing them from becoming channels for smuggled, tax-evading, or counterfeit goods.

The effectiveness of anti-fraud measures in e-commerce heavily depends on the capacity to manage, store, and share data. During the draft Law drafting sessions, representatives from the General Department of Taxation, Ministry of Finance, recommended extending the minimum transaction data retention period from 12 months, as initially proposed, to at least 24 months.

According to the General Department of Taxation, this extension supports tax management of e-commerce transactions and livestream sales, and aligns with Decree No.53/2022/ND-CP guiding the Cybersecurity Law. The Ministry of Science and Technology also concurred, noting that longer data retention ensures integrity and evidentiary value of electronic certificates, aiding investigation and enforcement of IP violations.

To ensure effective operation of this data system, the General Department of Taxation recommended clarifying the Ministry of Industry and Trade’s responsibilities in issuing inter-ministerial data connection standards, developing technical infrastructure, and establishing information-sharing mechanisms with relevant ministries and agencies. Data synchronization and transparency are considered foundational to the practical effectiveness of VID and platform accountability regulations.

Aggressive enforcement strategy and enhancing multi-dimensional anti-fraud capacity

Alongside completing the legal framework, the Ministry of Industry and Trade is implementing robust enforcement measures to control counterfeit, fraudulent, and IP-infringing goods in e-commerce, affirming its determination to address this pressing issue comprehensively.

Deputy Director Nguyen Thi Minh Huyen noted that on May 20, 2025, the Ministry issued Decision No. 1398/QD-BCT on a high-intensity plan to strengthen management, inspection, and handling of counterfeit, imitation, and IP-infringing goods in e-commerce.

The implementation plan focuses on four key solution areas, producing concrete quantitative results. Firstly, product review and removal efforts have been intensified at scale. The Department of E-Commerce and Digital Economy proactively coordinated with e-commerce platforms to remove over 44,100 products and 12,000 violating shops. These figures demonstrate the decisive and effective intervention of regulatory authorities in cleaning up the online business environment, as well as the positive collaboration between government agencies and digital platforms.

Simultaneously, the Department focuses on monitoring key product groups, especially regulated goods or items prone to fraud, such as footwear, fashion, and household appliances. Concentrated oversight of high-risk sectors optimizes inspection resources, ensuring targeted and effective management.

Additionally, the Department has strengthened inter-agency collaboration, working closely with investigative police and market management forces to detect, prevent, and handle violations. Recently, 120 e-commerce violation cases were addressed, demonstrating the authorities’ commitment to rigorous and transparent legal enforcement, reinforcing business and consumer trust in a safe and healthy digital marketplace.

Sustainable anti-fraud efforts hinge on enhancing state management capacity at the local level. The Department has cooperated with provincial Departments of Industry and Trade to conduct multiple training programs for market management forces, improving their skills in e-commerce inspection, monitoring, and violation handling.

Anti-fraud measures cannot be separated from public communication and awareness-raising. The Department has actively collaborated with media agencies to educate consumers about risks and encourage reporting of violations.

Through measures such as seller identification via VID, extended data retention, high-intensity enforcement plans, and capacity-building for enforcement personnel, Vietnam is establishing a strong legal and operational framework to ensure the healthy, fair, and sustainable development of e-commerce.