E-commerce growth raises pressure on legal compliance

Organised by the Centre for Legal Support for Small and Medium-sized Enterprises under the Department of Civil and Economic Law of the Ministry of Justice in coordination with Vietlink Law Firm, the conference brought together experts to discuss practical legal issues arising from the growing use of e-commerce and digital platforms.

Hoang Ninh, deputy director of the Vietnam E-commerce and Digital Economy Agency under the Ministry of Industry and Trade, said the rapid growth of e-commerce platforms, social media and livestreaming was allowing businesses and household businesses to reach wider markets and scale up sales, but is also placing greater demands on internal controls.

“Sellers must provide information for identity verification, while intermediary e-commerce platforms are responsible for electronic verification before allowing sellers to conduct business. On platforms that provide online ordering functions, sellers must use their own payment accounts,” Ninh said.

Businesses consequently need clear internal arrangements covering product listings, pricing, promotions, account management and cash flows. Moving sales online does not remove requirements applicable to the goods themselves, with products requiring business licences or subject to specific conditions remaining subject to those rules when sold through e-commerce platforms.

An overview of the workshop. Photo: Vietlink Law Firm

Product information has also emerged as a significant compliance issue. Online consumers often rely on images, videos, descriptions, advertising and sellers’ claims when making purchasing decisions, making accurate information on product functions, origin, quality, prices, promotions and warranties particularly important.

“Sales content can no longer be treated solely as a marketing function. It needs to form part of a company’s broader compliance and control process,” Ninh said.

The concern is particularly relevant to livestreaming and the growing use of KOLs and KOCs as sales channels. Businesses need to control information provided to promoters, establish clear guidance on permitted content and ensure prices and promotional programmes can be updated promptly, Ninh added.

The compliance burden comes as e-commerce platforms, social media and multi-channel business models enable SMEs and household businesses to reach customers far beyond their traditional markets. Small manufacturers and retailers can promote products, receive orders, process payments and arrange delivery through digital platforms without major investment in conventional distribution networks.

Yet an online transaction can involve obligations across multiple areas, including electronic contracts, taxation, invoicing, advertising, intellectual property, consumer protection, personal data and sector-specific requirements.

Dr Le Thi Hoang Thanh, deputy director of the Department of Civil and Economic Law under the Ministry of Justice, said many businesses and household businesses still face difficulties in accessing, updating and applying regulations governing e-commerce.

“A lack of information and limited capacity to identify legal risks can lead to violations and disputes, increase compliance costs and affect business reputation and performance,” she said.

“Against the backdrop of continued development of the legal framework for the digital economy, the requirement is not simply to ‘know the law’ or comply when inspections take place, but to actively identify and control risks from the outset of organising business activities in the digital environment.”

She therefore believes that greater legal awareness and stronger risk management capabilities would help businesses reduce disputes, protect their legitimate interests, strengthen competitiveness, and build consumer confidence.

Dr Tran Minh Son, director of the Centre for Legal Support for Small and Medium-sized Enterprises under the Department of Civil and Economic Law of the Ministry of Justice, identified the fragmented legal framework as a particular challenge for SMEs and household businesses.

An online business may have to comply with rules covering business conditions, product origin, advertising, promotions, electronic contracts, taxation, invoices, consumer protection, personal data and intellectual property. For smaller businesses without dedicated legal resources, keeping track of these obligations can be difficult.

Son also warned against waiting until a dispute or inspection occurs before seeking legal advice.

“On the digital environment, an advertising error can quickly reach a large customer base, while a problematic product can be sold simultaneously across several platforms,” he said.

Tax and transaction records require closer management as businesses generate revenue through multiple platforms, payment methods and sales channels. Consistent reconciliation of transaction data can help minimise discrepancies and tax compliance risks.

Consumer protection and intellectual property present further challenges. Information displayed on online shops, including product images, technical specifications, prices, return policies and sellers’ commitments, can affect the rights and obligations of both parties. Digital content and trademarks can also be copied easily, creating risks of infringement and making protection of businesses’ own intellectual property increasingly important.

“The challenge, therefore, is not simply to add more regulations, but to make the existing legal framework more accessible and practical for businesses,” Son said.

He suggested tailoring legal support more closely to the practical needs of SMEs and household businesses. Guidance on setting up online shops, electronic contracts, tax obligations, intellectual property, data protection and complaint handling could be built around situations businesses are likely to encounter.

Electronic handbooks, online Q&A platforms, legal information portals, instructional videos, model contracts and policies could also make legal guidance more accessible and help businesses manage compliance costs.

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