E-Commerce Surge Fuels Legal Compliance Concerns

Rapid growth in Vietnam’s e-commerce sector is forcing small businesses and household sellers to confront a complex web of legal obligations they were never designed to handle. A conference hosted by the Ministry of Justice’s Centre for Legal Support for Small and Medium-sized Enterprises brought together officials and legal experts to address the compliance challenges sweeping through the country’s digital marketplace.

Verification and product standards online

Hoang Ninh, deputy director of the Vietnam E-commerce and Digital Economy Agency, told attendees that the explosion of online platforms, social media sales and livestreaming has allowed merchants to reach customers far beyond their traditional markets. But this expansion comes with new internal control requirements. Sellers must now provide identity verification information, while intermediary platforms bear responsibility for electronic checks before allowing merchants to operate. Any business using online ordering functions must route payments through their own accounts.

Products that require business licenses or face specific conditions in physical stores remain subject to those same rules when sold digitally. This means compliance cannot be switched off simply because transactions moved online. Ninh also flagged product information as a mounting concern. Online buyers rely heavily on images, videos, descriptions and advertising claims, making accurate disclosure of functions, origin, quality, pricing, promotions and warranties essential.

Regulatory complexity strains small operators

Dr Le Thi Hoang Thanh, deputy director of the Ministry of Justice’s Department of Civil and Economic Law, said many businesses and household enterprises struggle to access, understand and apply the regulations governing e-commerce. A shortage of information and limited capacity to spot legal risks can result in violations, disputes and higher compliance costs, she noted. The legal framework governing the digital economy continues to evolve, shifting the requirement from merely knowing the rules to actively managing risks from the moment business activities begin online.

For smaller operators without dedicated legal staff, keeping pace with obligations across business licensing, product origin, advertising, promotions, electronic contracts, taxation, invoicing, consumer protection, personal data and intellectual property has become overwhelming. Dr Tran Minh Son, director of the Centre for Legal Support, pointed to this fragmented legal setting as a particular obstacle.

Livestreaming sales and the use of key opinion leaders and key opinion consumers as marketing channels have added another layer of complexity. Businesses must now control what information reaches promoters, set clear boundaries on permitted content and ensure prices and promotional details can be updated across platforms without delay. An advertising mistake or problematic product can spread to a massive customer base almost instantly in the digital environment.

The practical effect of these overlapping requirements falls hardest on small manufacturers and retailers who lack the resources of larger companies. While digital platforms have lowered barriers to entry by enabling product promotion, order processing, payment handling and delivery coordination without major investment in traditional distribution networks, the compliance burden that follows is anything but minor.

Guidance and practical support

Son warned against waiting until a dispute or inspection occurs before seeking legal advice. Tax and transaction records demand closer attention as revenue flows through multiple platforms, payment methods and sales channels. Consistent reconciliation of transaction data helps minimize discrepancies and reduce exposure to tax compliance issues.

Consumer protection and intellectual property present separate challenges. Information shown on online shops, including product images, technical specifications, prices, return policies and seller commitments, shapes the rights and obligations of both buyers and sellers. Digital content and trademarks can be copied with ease, creating infringement risks that make protecting a business’s own intellectual property increasingly vital.

Son suggested tailoring legal support more closely to what small businesses and household enterprises actually encounter. Guidance on setting up online shops, electronic contracts, tax obligations, intellectual property, data protection and complaint handling could be structured around real-world situations. Electronic handbooks, online question-and-answer platforms, legal information portals, instructional videos, and model contracts and policies might make compliance guidance more accessible and help businesses manage costs.