New legal framework and data retention obligations

Vietnam’s e-commerce sector is expanding at an unprecedented pace, especially through emerging models such as livestream sales and affiliate marketing. This boom offers major opportunities but also raises challenges for oversight and consumer protection. Nguyen Huu Tuan, Director of the Center for E-Commerce and Digital Technology Development (eComDX) under the Ministry of Industry and Trade, emphasized: “Legal frameworks are the backbone of the digital economy.”

Recent inspections revealed basic yet costly mistakes by many sellers. Failure to notify the Ministry of Industry and Trade about an e-commerce sales website can incur fines of VND 10 - 20 million for individuals and VND 20 - 40 million for businesses, even though notification is free. Some sellers display “notified” or “registered” logos without approval, an act deemed information falsification, subject to fines of up to VND 30 million, doubled for businesses. For regulated goods such as alcohol, tobacco, or health-care products, sellers must obtain licenses, verify buyer age, and accept only cashless payments. These examples show that mastering regulations is a prerequisite for sustainable business.

Against this backdrop, the draft E-Commerce Law has drawn strong attention from the business community. Its most notable provision requires mandatory storage of livestream data for one year. Designed to ensure transparency and provide legal evidence in disputes or complaints, this rule addresses the inherently real-time, hard-to-control nature of livestream content, giving regulators and consumers clear proof when needed.

However, the requirement creates significant pressure for sellers. Storing high-quality video for extended periods demands investment in technology infrastructure from servers and cloud services to data-management systems, especially for merchants who livestream frequently or at scale. Beyond cost, sellers must organize technical teams capable of retrieving data on request.

Nguyen Ngoc Minh, owner of a cosmetics shop on Tiktokshop, voiced concern: “I livestream about three times a week, each session lasting one to two hours. Keeping all videos for a year means enormous data volume. For a household business like mine, server rental or cloud storage fees will be a burden. But I understand this is an inevitable trend to protect both customers and sellers”.

Similarly, Le Lan Huong, who runs a small handmade-cosmetics workshop in Hanoi, shared: “Storing a full year of video is not cheap. But it provides critical proof when customers need to verify origin or formulas. I hope there will be clear guidelines so individual household businesses like mine are not left confused”.

The positive side of the rule is undeniable. Retaining complete transaction records allows sellers to defend themselves against baseless complaints. Knowing that every broadcast is archived and reviewable also compels merchants to improve livestream quality, provide accurate information, and avoid exaggerated product claims. This is a key step toward a transparent, professional business environment.

Challenges and solutions for the livestream era

Along with tightening direct-sales activities, the draft E-Commerce Law also extends regulation to affiliate marketing, where KOLs and KOCs play pivotal roles in product promotion. Previously regarded merely as “introducers”, they will now share legal liability with sellers. From verifying information accuracy and disclosing sponsorships to avoiding inflated claims, any violations may lead to heavy fines and even advertising bans of one to five years.

This provision imposes new requirements on both sides. KOLs and KOCs must professionalize their operations, while sellers need rigorous content-review processes before collaboration. If a promotional partner violates the rules, the business itself can be held jointly liable.

Ngoc Minh recounted a past collaboration with a KOC: “If the new law holds KOCs legally responsible, I must be more cautious when signing contracts to avoid situations where false statements could penalize us both. It may be difficult at first, but it will also make us more professional”.

From the perspective of local agricultural producers, the regulation also raises concerns. Vu Thi Tham, Director of the Gia Phu Food Processing Cooperative in Lao Cai province whose booth sells the province’s OCOP products on multiple e-commerce platforms remarked: “I see this as a necessary trend to protect local brands and consumer rights. With technical guidance and infrastructure support from e-commerce platforms, we can comply and use it as an opportunity to enhance the professionalism of Lao Cai’s OCOP products”.

These developments highlight a shared effort to build a transparent, sustainable e-commerce ecosystem. While the one-year livestream data storage rule may worry sellers about costs and technology, it is a vital step to strengthen consumer trust and protect their own interests.

The draft E-Commerce Law not only sets new standards for online sales but also reshapes business practices on digital platforms. The one-year livestream storage mandate may increase costs and demand greater technological capability, but in return it delivers transparency and clear legal grounds for resolving disputes.

For sellers, understanding and complying with the law is no longer optional, it is essential for survival. Coordinated action among a robust legal framework, platform support, and financial-technology solutions from banks will help businesses and individual entrepreneurs overcome challenges and move toward a professional, fair, and sustainable e-commerce market.