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Minister Nguyen Hong Dien highlighted the Ministry of Industry and Trade’s priority of bolstering consumer protection for the sustainable growth of Vietnam’s e-commerce sector. He emphasised e-commerce’s pivotal role in the economy, serving as both a vital distribution channel and a catalyst for financial innovation.
According to ministry data, Vietnam ranks among the top five countries globally for e-commerce growth, witnessing a remarkable 25% increase in 2023 compared to 2022. The retail e-commerce market in Vietnam was valued at an impressive US$20.5 billion in 2023, highlighting its significant contribution to the national economy.
“E-commerce has become an indispensable component of our economy, catalysing the evolution of financial services and payment systems,” Dien remarked. “However, to sustain this momentum, we must address the accompanying challenges effectively.”
Despite its rapid growth, the e-commerce sector in Vietnam faces several pressing challenges. Minister Dien identified three major issues: the risk of personal data breaches, rampant counterfeiting, and significant tax losses. To mitigate these challenges, the ministry has implemented a series of proactive measures.
The Ministry of Industry and Trade has mandated e-commerce platforms and websites to rigorously review, remove and lock out non-compliant online stores. As a result, over 6,200 online stores selling 23,359 violating products have been shut down. Additionally, the ministry conducted 834 investigations into e-commerce violations, imposing fines totalling VN$ 12 billion.
“One of the primary issues is the insufficient enforcement of sanctions against counterfeit products,” Dien noted. “Stricter measures are essential to deter violations and protect consumers.”
A significant legislative development is the Law on Protection of Consumer Rights 2023, set to take effect in July. This law is expected to provide robust protection for consumers in the digital marketplace, ensuring that their rights are safeguarded against fraudulent activities and data breaches.
The ministry is also collaborating with the Ministry of Public Security to draft comprehensive legislation focused on the protection of personal data. Under this proposed law, e-commerce platforms will be required to publicly disclose their policies regarding the protection of personal data, thereby enhancing transparency and consumer trust.
The ministry aims to combat counterfeit goods by increasing inspections of product origins and quality, while also encouraging local producers to improve product quality and promote Vietnamese-made goods. These steps protect consumers and enhance the reputation of domestic products.
“We are committed to rooting out counterfeit goods from our e-commerce platforms,” Dien asserted. “By improving the quality of local products and promoting them effectively, we can build a more trusted and reliable e-commerce ecosystem.”
Minister Dien stressed the need for improved tax management in e-commerce to prevent revenue losses. He proposed removing VAT and import tax exemptions on low-value imported goods, citing significant revenue potential from transactions on four major foreign e-commerce platforms.
In 2021, e-commerce tax revenues reached nearly VN$ 100 trillion, originating from nearly US$21 billion, underscoring the need for improved data connectivity and information sharing to enhance tax management and enforcement. The ministry’s proposed measures include increasing data integration and collaboration between relevant agencies to ensure more effective tax collection and compliance.
The Ministry of Industry and Trade aims to strengthen consumer protection and regulatory measures, demonstrating Vietnam’s dedication to nurturing a resilient e-commerce ecosystem. Through proactive measures and comprehensive frameworks, the ministry seeks to establish a secure and trustworthy e-commerce environment for both consumers and businesses.
“As we continue to navigate the digital age, our priority remains clear: to protect our consumers and ensure the sustainable growth of e-commerce,” Dien concluded. “With these measures, we are confident in building a vibrant and trustworthy e-commerce sector that will continue to drive economic growth and innovation.”
