Preventing erosion of consumer confidence

In recent years, the Vietnam’s E-Commerce sector has recorded impressive growth, becoming a key driver of the digital economy. The Vietnam E-Commerce Index 2025, released by the Vietnam E-Commerce Association (VECOM), shows that online retail revenue surged (27% in 2024) and the market size reached approximately USD 32 billion, figures that confirm the market has entered a phase of rapid and substantial expansion.

However, this growth trajectory hides significant risks if a comprehensive legal framework is lacking, ranging from consumer protection and seller transparency to product quality management, data security, and legal liability in livestream commerce.

Nguyen Huu Tuan, Director of the Center for E-Commerce and Digital Technology Development (eComDX), emphasized: “The legal framework is the backbone of the digital economy. A strong and sustainable e-commerce community cannot exist without solid legal foundations.”

Indeed, legal loopholes erode consumer trust, discourage long-term investment, and create uneven compliance costs for sellers, particularly micro and small businesses. A regulatory framework that is rigorous, transparent, and practical builds confidence for all stakeholders: consumers, platforms, sellers and regulators.

In practice, while revenue continues to rise, the number of active sellers generating orders on major marketplaces fell sharply in 2024. Many left the platforms due to advertising costs, price competition, and operational expenses. Market reports note tens of thousands of storefronts “exiting the game,” a warning that scale alone does not equate to sustainable development if benefits are not distributed fairly and transparently.

Nguyen Thu Hang, owner of a handicraft shop in Hanoi, shared: “Advertising costs and proof-of-origin requirements are getting stricter. But I support them, because clear regulations help us operate transparently and build customer trust. The key is for regulators to issue clear guidance to avoid confusing small businesses like ours.”

Many sellers still commit basic violations, such as failing to notify authorities about their e-commerce websites or displaying “notified” or “registered” logos without official confirmation. In addition, conditional industries: alcohol, tobacco, or health-care products must meet stringent requirements: valid business licenses, age verification, and mandatory cashless payment.

Meanwhile, emerging models such as livestream selling and affiliate marketing demand continual updates to the legal corridor. The draft of the new E-Commerce Law proposes mandatory storage of livestream data for at least one year to enhance transparency and ensure traceability in case of disputes.

Currently, the regulatory system such as Decree 85/2021 amending Decree 52/2013 has laid a foundation for e-commerce management but still lags behind technological realities (livestream sales, social commerce, cross-border selling). Strengthening rules on seller identity verification, transaction and livestream data retention, product information transparency, and complaint-handling responsibilities is essential to create a level playing field and protect both consumers and sellers.

Shared responsibility and solutions for sustainable growth

For e-commerce to develop sustainably, the legal framework must extend beyond sellers to cover promotional activities, especially the responsibilities of digital influencers.

According to Nguyen Huu Tuan, KOLs and KOCs are now required to comply with strict legal obligations when endorsing products: Verifying information before promotion, disclosing sponsorships, avoiding exaggerated claims, and sharing liability for false advertising. They must also address complaints arising from the content they provide.

Violations incur serious penalties, including fines, mandatory removal and correction of false content, and in severe cases, advertising bans of one to five years. These tough measures aim to protect consumers and reinforce confidence in online marketing.

Bui Kim Trang, a frequent livestream shopper, said: “I once received a product that didn’t match the description. With regulations on data retention and influencer responsibility, I feel more secure because there is clear evidence if a dispute occurs.”

Training and digital-transformation support are also critical. Tran Trong Ninh, Senior Officer of Tax Management Division 2 under the E-commerce Tax Department, affirmed that training programs help businesses and small traders stay current with new policies and operate e-commerce activities effectively and lawfully.

Technology platforms and financial institutions likewise show firm commitments. Nguyen Lam Thanh, representative of TikTok Vietnam, stated that TikTok not only provides growth tools but also assists sellers in understanding legal requirements, thereby fostering a transparent environment.

Vietnam’s E-Commerce market is entering a phase of qualitative development, where legal compliance becomes a top priority. As Nguyen Huu Tuan highlighted, “The legal framework is the backbone of the digital economy”. When sellers proactively follow regulations, technology platforms provide guidance, and authorities tighten oversight, the Vietnam’s E-Commerce sector will maintain transparency, professionalism, and sustainability, making a vital contribution to the long-term goals of the national digital economy.