However, the rapid expansion of the digital market has also generated major challenges related to fair competition, data monopolization, market manipulation, and unequal access to opportunities among enterprises. Improving the legal framework, particularly the Law on E-commerce, is an urgent requirement to balance innovation promotion with the control of competitive risks.
The promulgation of the Law on E-commerce is not merely an update of legal instruments but also responds to the need for restructuring competition management thinking in the digital environment; it meets the requirement to build a comprehensive, flexible legal framework that keeps pace with technological development; and it serves as a key factor enabling Vietnam to unlock the potential of the e-commerce market, attract investment, and ensure fair and transparent competition.
The issue lies in effectively disseminating and popularizing the Law so that it is well understood by all stakeholders, while simultaneously adopting appropriate enforcement solutions to ensure its effective implementation in practice. This article aims to contribute to meeting that requirement.
Overview of E-commerce
In recent years, e-commerce has grown at a rate of 20–25% per year, accounting for approximately 10% of total retail sales of goods, and has become an important driver of the digital economy. However, this sector has long been governed mainly by decrees, revealing many regulatory gaps amid the explosion of social commerce, livestream sales, and cross-border platforms, thereby exerting significant pressure on the competitive environment. Fair competition can only be ensured when the law effectively regulates data power and algorithms, balances interests between large platforms and small enterprises, and protects consumer rights in the digital environment.
The new Law on E-commerce, adopted by the National Assembly of Vietnam at its December 2025 session and effective from July 1, 2026, addresses these practical requirements. The Law consists of seven chapters with 41 articles, establishing a comprehensive legal framework for e-commerce in the context of a rapidly developing digital economy. It regulates all e-commerce activities in Vietnam, including: activities of e-commerce platforms, service providers (logistics, payment services), sellers and buyers; and cross-border e-commerce, particularly foreign enterprises selling online into Vietnam.
As e-commerce is an interdisciplinary field closely related to taxation, customs, finance, cybersecurity, and personal data protection, the Law on E-commerce must design clear coordination mechanisms among authorities, overcoming the situation where each sector “manages its own segment,” which leads to overlaps and loopholes for tax evasion, trade fraud, and unfair competition in cross-border transactions.
Theoretical and practical legal foundations of the law on E-commerce
1. Nature and characteristics of the digital market:
- The digital market is not merely online transactions but an ecosystem connecting consumers, enterprises, digital platforms, data, and algorithms.
- Characteristics include network scale, network effects, low marginal costs, and the collection and use of data as a core business resource.
2. Competition in traditional and digital markets:
- In traditional markets, competition is based on price, product/service quality, marketing, and distribution.
- In digital markets, competition depends on control over data, algorithms, intermediary platforms, ecosystem governance, and customer lock-in capabilities.
3. Current Vietnamese law on e-commerce:
The revised Law on E-commerce, guiding decrees, and competition policies provide a general framework but lack detailed provisions regulating digitalized behavior and digital platforms, particularly regarding: user data and privacy; management of ranking and display algorithms; dominance of large digital platforms; and fair competition between new entrants and large platform enterprises.
New features of the 2025 Law on E-commerce compared with the previous legal framework (mainly Decree No. 52/2013 and Decree No. 85/2021)
The Law on E-commerce 2025 marks an important step forward in Vietnam’s e-commerce legislation by clarifying rights and obligations of stakeholders, enhancing transparency and consumer protection, and fostering sustainable e-commerce development and international integration. Compared with previous decrees, the Law introduces several new provisions that better facilitate individuals, enterprises, agencies, and organizations in economic development. Specifically:
- Establishment of a comprehensive and modern legal framework: The new Law is not merely an administrative decree as before, but a formal statute comprehensively regulating e-commerce activities (from sellers and platforms to supporting services). This represents a major advance over the previous reliance on decrees, which lacked principled consistency and easily conflicted with specialized laws.
- Clear classification of e-commerce platforms: The Law identifies four types of e-commerce platforms with different obligations, reflecting the diversity of modern business models, including: direct sales platforms (enterprises); intermediary platforms; social networks with e-commerce functions; and integrated multi-service platforms. This enables tailored management for each model instead of applying a uniform framework as before.
- Strengthened management of sellers and content: The new Law introduces more specific requirements, including seller identity verification via the VNeID system to enhance traceability and reduce counterfeit and copyright-infringing goods. Livestreamers and influencers (KOLs/KOCs) are required to comply with sales regulations, ensure information transparency, and avoid false advertising. Platform responsibility is increased with obligations to monitor content, remove violations within 24 hours, and store transaction and livestream data for regulatory purposes.
Advantages and challenges in Implementing the law
1. Advantages:
- A clear and modern legal framework: The new Law replaces fragmented regulations and creates consistency in rights, responsibilities, and obligations of e-commerce participants, thereby reducing legal risks and fostering a more transparent business environment.
- Enhanced consumer trust: Clear regulations on identity verification, counterfeit control, and dispute resolution help consumers feel more secure in online transactions.
- Promotion of cross-border e-commerce development: The Law supports Vietnamese enterprises in accessing global markets and promoting exports via e-commerce.
- Alignment with international trends: Recognition of electronic transactions and contracts, along with a data protection framework consistent with international trends, helps Vietnam attract foreign investment and expand global trade cooperation.
2. Implementation challenges:
- Compliance burden on small enterprises: Small and medium-sized enterprises, individual sellers, and livestream sellers may face difficulties in identity verification, registration, data reporting systems, and more complex tax and accounting requirements, potentially increasing compliance costs.
- Difficulties in managing livestreaming and social networks: Monitoring content and product standards of thousands of livestream sellers is difficult to implement consistently and effectively without sufficient technical and human resources.
- Technology integration requirements: The Law requires effective operation of technological infrastructure such as electronic identification, payment systems, and data sharing with authorities. If infrastructure readiness is insufficient, both enterprises and regulators will face challenges.
- International compliance pressure: For foreign companies, application of new requirements (legal representation, data, taxation) may lead them to reconsider their Vietnam market strategies.
International experience
- European Union: The proposed Digital Markets Act (DMA) distinguishes “gatekeepers” and imposes mandatory regulations on data, algorithms, and user rights, ensuring fair competition between large platforms and partners through data transparency and ranking criteria.
- United States: Focuses on investigating monopolistic behavior of large platforms, proposing digital antitrust laws, and redefining competitive markets in the digital environment.
- China: Establishes competition adjustment mechanisms in the digital economy, including algorithm transparency requirements and restrictions on binding data integration practices.
Emerging competition Issues in E-commerce and the role of the Law on E-commerce
The rapid development of digital technology has propelled e-commerce into one of the most dynamic economic sectors today. Alongside significant benefits such as market expansion, reduced transaction costs, and enhanced consumer convenience, e-commerce has also given rise to complex competition issues. In this context, the Law on E-commerce plays a crucial role in regulating and ensuring a healthy and fair competitive environment.
1. Emerging competition issues in e-commerce:
First, unfair competition: In the online environment, some enterprises engage in false advertising, predatory pricing, fake consumer reviews, or copying competitors’ content and images, harming legitimate businesses and eroding consumer trust.
Second, abuse of dominant market position: Large e-commerce platforms control vast amounts of user data and market power. Practices such as prioritizing self-owned products, imposing unfavorable conditions on small sellers, or excluding potential competitors can distort competition.
Third, data and algorithm issues: Data has become a key competitive resource. Non-transparent data collection and use or unfair ranking algorithms can create unjustified advantages for certain actors.
Fourth, cross-border competition: While e-commerce facilitates international market access, it complicates competition management due to participants operating across jurisdictions with different legal systems.
2. Role of the Law on E-commerce in addressing competition issues:
First, establishing a legal framework for fair competition: The Law clearly defines rights and obligations of all participants from platforms and sellers to consumers thereby limiting unfair competitive practices.
Second, protecting consumers and small enterprises: Through information transparency requirements, platform accountability, and dispute resolution mechanisms, the Law reduces information asymmetry and protects vulnerable market participants.
Third, controlling data abuse and market dominance: In coordination with competition law and personal data protection law, the Law prevents abuse of market power and requires greater transparency in platform algorithms.
Fourth, enhancing cooperation and cross-border management: The Law provides a basis for international cooperation, enabling countries to coordinate in addressing competition violations in e-commerce.
3. Recommendations:
To enhance the effectiveness of the Law on E-commerce, it is necessary to regularly update legal provisions in line with rapid technological development, strengthen oversight of large platforms, improve legal awareness among enterprises and consumers, and promote international cooperation in e-commerce competition management.
E-commerce offers numerous opportunities but also poses significant competitive challenges. Issues such as unfair competition, abuse of market dominance, and data governance require timely legal intervention. As a key legal instrument, the Law on E-commerce contributes to building a transparent, fair, and sustainable e-commerce environment, thereby promoting healthy development of the digital economy.
Solutions for Effective Implementation of the Newly Enacted Law on E-commerce
E-commerce is a vital pillar of the digital economy, contributing significantly to economic growth and national digital transformation. In Vietnam, e-commerce has grown rapidly into a market worth tens of billions of USD, while also facing challenges related to fraud, counterfeit goods, consumer protection, and tax management. To address limitations of previous regulations, the National Assembly has adopted a new Law on E-commerce aimed at strengthening governance, enhancing market transparency, and promoting sustainable development. To ensure effective implementation in socio-economic life, it is essential to develop and deploy coordinated legal, technical, and organizational solutions.
Solutions for effective implementation:
1. Improving the system of implementing guidelines:
One of the greatest challenges following enactment is the lack of detailed guidance, especially for new provisions such as platform and seller responsibilities in livestreaming, digital identification of sellers via VNeID, and cross-border e-commerce and tax reporting obligations of international platforms.
Specifically: promptly issue guiding decrees and circulars after the Law takes effect; develop technical standards and inspection procedures; update international principles to ensure compatibility and consumer protection.
2. Strengthening inter-agency coordination:
E-commerce involves multiple sectors, including trade, information technology, taxation, customs, consumer protection, and cybersecurity. Overlapping management and inconsistent enforcement can undermine effectiveness.
Specifically: establish inter-agency steering committees on e-commerce at central and local levels; enhance coordination among the Ministry of Industry and Trade, Ministry of Finance, Ministry of Information and Communications, General Department of Taxation, and customs authorities for data sharing and synchronized supervision; clearly define responsibilities related to data security, taxation, and consumer protection.
3. Developing technical infrastructure and data systems:
The new Law requires platforms to verify seller identities through the national electronic identification system (VNeID) to enhance transparency and traceability.
Specifically: upgrade and integrate VNeID with e-commerce platforms and national databases; promote the use of AI and Big Data to automatically detect fraud, counterfeit goods, and risks; establish early warning systems and data-sharing mechanisms between regulators and platforms.
4. Enhancing capacity of enterprises and consumers:
Vietnam’s e-commerce ecosystem includes many SMEs lacking legal compliance knowledge, while consumers are not fully equipped to protect their rights.
Specifically: organize training programs on e-commerce law, cybersecurity skills, and electronic taxation for SMEs; develop visual guides, online courses, and free consultation services; strengthen public communication campaigns to inform consumers of their rights and complaint mechanisms.
5. Strengthening tax management and inspection:
New tax provisions require transparency of seller and platform revenues and may require platforms to withhold and remit taxes.
Specific solutions include: deploying data connectivity systems between e-commerce platforms and tax authorities for automatic revenue identification and reporting; establishing periodic inspections and data audits based on risk analysis; defining clear criteria for administrative sanctions and technical measures (access blocking, content removal).
Encouraging innovation and sustainable development:
E-commerce governance should not only focus on fraud prevention but also promote innovation, environmental protection, and sustainability. Initiatives such as “green e-commerce” to reduce logistics waste are being proposed in Vietnam.
Specific solutions include: developing green standards for e-commerce (packaging, transportation); supporting enterprises’ investment in green logistics and sustainability platforms; aligning legal objectives with financial incentive programs.
The new Law on E-commerce represents a major turning point in Vietnam’s e-commerce governance and development, incorporating mechanisms to enhance transparency, protect consumers, and improve tax management. However, for the Law to be truly effective in practice, coordinated technical, legal, and strategic solutions are required—from completing implementing guidelines and strengthening inter-agency coordination to developing data infrastructure and enhancing capacity of enterprises and consumers. The combination of strict yet flexible governance with innovation incentives will enable Vietnam’s e-commerce sector to develop sustainably in the digital era./.
M.A. Le Minh Toan
REFERENCES
- The Law on E-commerce 2025 adopted by the National Assembly on December 10, 2025;
- Policy reports of the Ministry of Industry and Trade submitted to the National Assembly, aiming to promote fair competition and consumer protection in the digital economy while clearly defining responsibilities of platforms and social networks participating in e-commerce;
- The current legal framework and the necessity of the new law;
- National E-commerce Development Plan for 2026–2030.
