Legal framework for the operation of e-commerce platforms

Since the global outbreak of COVID-19, consumer habits have undergone a dramatic shift. Consumers have gradually moved from accessing products directly at stores, supermarkets, or shopping malls to online shopping. Many stores have transitioned to e-commerce, and numerous e-commerce platforms have emerged, allowing customers to save time and easily choose products with just a few clicks on websites. 

This not only offers convenience, as users can quickly compare prices, models, and quality between stores, but also fosters competition in terms of price and quality service. 

Entering the field of e-commerce with confidence requires a clear understanding of legal regulations- a key factor that helps businesses maintain stable operations and build strong credibility in the eyes of consumers. 

1. What is an E-commerce Platform? 

E-commerce activities involve conducting part or all of the commercial process through electronic means connected to the Internet, mobile telecommunications networks, or other open networks.(1) 

An e-commerce platform is an e-commerce website that enables merchants, organizations, and individuals who do not own the website to carry out part or all of the buying and selling processes of goods and services on it.(2)

Forms of operation for e-commerce platforms:(3)

• A website that allows participants to open storefronts to display and introduce goods or services. 

• A website that allows participants to create accounts to facilitate the contracting process with customers. 

• A website with a dedicated buying and selling section, where participants can post advertisements for buying and selling goods and services. 

2. Conditions for Operating an E-commerce Platform(4)

To operate an e-commerce platform, a business organization must register the establishment of a website that provides e-commerce platform services and disclose information about the website owner on the website’s homepage. 

• Develop and publicly disclose on the website the operational regulations of the e-commerce platform and monitor and ensure compliance with these regulations on the platform. 
• Require sellers on the e-commerce platform to provide information when registering to use the service. For foreign sellers, names must be transcribed in Vietnamese or displayed in Latin characters. 
• Implement a mechanism to inspect and monitor the accuracy and completeness of the information provided by sellers on the e-commerce platform. 
• Store registration information of merchants, organizations, and individuals participating in the e-commerce platform and regularly update any relevant changes or additions. 
• Establish a mechanism that allows merchants, organizations, and individuals participating in the e-commerce platform to complete the contract process if the website has an online ordering function. 
• Implement necessary measures to ensure the security of information related to the trade secrets of merchants, organizations, individuals, and the personal information of consumers. 
• Implement timely measures when detecting or receiving reports of illegal business activities on the e-commerce platform. 
• Support government authorities in investigating and handling illegal business activities and assist in resolving disputes and complaints. 
• Publicly disclose the dispute resolution mechanism for issues arising during transactions on the e-commerce platform. If customers encounter conflicts with sellers or suffer damage to their legitimate interests, provide them with the seller’s information and actively support customers in protecting their legal rights and interests. 
• For e-commerce platforms with an online ordering function, in addition to the above obligations, merchants and organizations providing e-commerce platform services are also responsible for: 
  • Appoint a contact point to receive requests and provide online information to government authorities regarding individuals or entities with signs of legal violations. This contact point must supply information within 24 hours of receiving the request to promptly facilitate inspection, handling violations, and addressing complaints. 

1. • Act on behalf of foreign sellers on the e-commerce platform to resolve consumer complaints related to goods and services provided by foreign merchants and inform foreign sellers of their tax obligations under Vietnamese law when participating in the e-commerce platform. 

1. • Serve as the main contact for receiving and resolving consumer complaints when a transaction on the e-commerce platform involves more than two parties. 

1. • Store information about online ordering transactions conducted on the e-commerce platform in accordance with accounting regulations. 

1. • Bear joint liability for compensation in cases of violations of the obligations specified in Sections 2.8 and 2.9 above, where such violations result in damages. 

3. Registration Documents for an E-commerce Website(5)

• Application for establishing a website that provides e-commerce services. 

• Certified copy of the Enterprise registration certificate. 

• Service provision plan. 

• Operational regulations for managing the e-commerce service website.

• Sample service contract or cooperation agreement between the merchant or organization owning the e-commerce service website and the merchants, organizations, or individuals participating in the buying and selling of goods or services on the website. 

• Certified copy of the hosting/server rental contract. 

4. Registration Process(6)

The registration of an e-commerce website with the Ministry of Industry and Trade will be carried out according to the following steps: 

Step 1: Register for a login account on the E-commerce Activity Management Portal at www.online.gov.vn. 

Step 2: The Ministry of Industry and Trade will issue a system account within 3 working days if the provided information is complete and valid. 

Step 3: The enterprise logs into the system and proceeds to register the e-commerce service website, filling out the information according to the provided template and attaching the registration documents as outlined in Section 3. 

Step 4: Within 7 working days, the Ministry of Industry and Trade will review the submitted online documents and request adjustments or additional information if the documents are invalid or will confirm that the registration documents are complete and valid. 

Step 5: After receiving the confirmation of complete and valid documents, the enterprise submits the complete registration dossier (in paper form) to the Ministry of Industry and Trade (E-commerce and Information Technology Department). 

Step 6: The Ministry of Industry and Trade will confirm the registration documents within 5 working days from the date of receiving the complete and valid paper registration dossier submitted by the enterprise either directly or by mail. 

Note: In cases where the paper documents submitted do not match the materials or information declared online through the system access account, the Ministry of Industry and Trade will notify the enterprise via the email address registered by the business, allowing the merchant or organization to complete the dossier. 

5. Reporting Obligations of E-commerce Platform Owners(7)

• Before January 15 each year, merchants and organizations that establish e-commerce service websites must report statistical data regarding their activities for the previous year to the Ministry of Industry and Trade.

• Reporting must be done online through the merchant’s or organization’s account on the E-commerce Activity Management Portal or in written form via postal mail. 

6. Acts that may result in Administrative Penalties(8)

Enterprises may face fines of up to 60 million VND, be required to repay any illegal profits obtained from committing administrative violations, be forced to withdraw the “.vn” domain of the e-commerce website or be required to remove mobile applications from app stores or provided addresses. They may also face suspension of e-commerce activities for 6 to 12 months if they repeatedly or subsequently commit the following acts: 

• Failing to register the e-commerce service website or application with the competent state management authority. 
• Transferring ownership of the e-commerce service website or application without following the proper transfer procedures or failing to re-register with the competent state management authority as required. 
• Providing false or misleading information when registering the e-commerce service website or application. 
• Falsifying registration information on the e-commerce service website or application. 
• Using a registered symbol on the e-commerce service website or application without obtaining confirmation of registration from the competent state authority as required. 
• Continuing to operate e-commerce services after the registration has been terminated or canceled. 

The above content provides essential information to help businesses, whether new or existing, assess and fully comply with legal requirements, ensuring a solid foundation for their operations in the e-commerce sector. 

(1) Article 3.1 of Decree 52/2013/ND-CP 

(2) Article 3.9 of Decree 52/2013/ND-CP 

(3) Article 1.15 of Decree 85/2021/ND-CP 

(4) Article 36 of Decree 52/2013/ND-CP 

(5) Article 22 of Circular 47/2014/TT-BCT 

(6) Article 23 of Circular 47/2014/TT-BCT 

(7) Article 20 of Circular 47/2014/TT-BCT 

(8) Article 62.4, Article 4.3.e of Decree 98/2020/ND-CP and Article 3.2 of Decree 17/2022/ND-CP 

See more: 

1/ Registering A Foreign-invested Company’s E-commerce Exchange Operation

2/ E-commerce in Vietnam: The responsibilities of foreign companies for data privacy

3/ A loophole in the legal framework for cross-border e-commerce

4/ Taxation related to running e-commerce business in Vietnam for foreign companies

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