What Are Conditions for E-commerce Business in Vietnam?

 

E-commerce business in Vietnam is conditional business area

Currently, in the context of increasingly developing technology, online transactions are also taking place more often, quickly and conveniently, and the connection between buyers and sellers has become no longer a distance.  But how to set up e-commerce business in Vietnam?  E-commerce lawyers in Vietnam will share some ideas below on conditions to set up e-commerce business in Vietnam and other matters.

The number of enterprises doing their business in the field of e-commerce has increased significantly in recent years.  Many foreign investors are also eyeing Vietnam for investment.  The question is to how to set up e-commerce business in Vietnam taking advantage of the growing market and in the meantime recruiting technology talents from Vietnam for their e-commerce business which has the potential to tap on global market.  

In Vietnam, e-commerce activity means conducting part or the whole of the process of commercial activity by electronic means connected to the Internet, mobile telecommunications network or other open networks.

The forms of organization of e-commerce activities includes:

- Sales conducted thorough e-commerce website: It is an e-commerce website developed by traders, organizations or individuals by themselves to serve their commercial promotion, sales or service provision.

- E-commerce service provision website:  It is an e-commerce website developed by traders or organizations to provide an environment for other traders, organizations or individuals to conduct their commercial activities. The e-commerce service provision website includes: E-commerce trading floor; Online auction website; Online promotion website and other types of website as regulated by the Vietnam Ministry of Industry and Trade.

How to set up e-commerce business in Vietnam?

The Law on Investment in Vietnam stipulates that e-commerce business is one of the conditional business lines. Therefore, if an enterprise wishes to set up e-commerce company in Vietnam, register and conduct business activities in this field, it must meet the following conditions:

Traders, organizations and individuals wishing to set up sales e-commerce websites must be traders, organizations or individuals who have been granted personal tax identification numbers; Having websites with valid domain names and complying with regulations on management of information on the Internet and having notified the Ministry of Industry and Trade of the set-up of sales e-commerce websites.

In order to conduct business activities based on websites providing e-commerce services, traders and organizations need to be registered for business at a competent agency in accordance with law and have websites with valid domain names and complying with regulations on management of information on the Internet.

In addition, traders and organizations also need to have a service provision project which clearly states the following contents: (i) Model of organization of operations, including service provision, promotion and marketing both online and offline; (ii) Structure, utilities and main information sections on the service website; (iii) Rights and responsibilities of the trader or organization providing e-commerce services and service users.

Enterprises that wishes to do e-commerce business need to register to set up a website to provide e-commerce services and be certified by the Ministry of Industry and Trade to register in accordance with the law.

Further, the enterprises also have to apply for investment registration certificate and business registration certificate in Vietnam at the Department of Planning and Investment. 

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E-commerce Lawyers in Vietnam on Navigating the Digital Marketplace

 In today’s rapidly evolving digital landscape, e-commerce has become an integral part of global trade and business. With the rise of online marketplaces, digital storefronts, and cross-border transactions, the world of commerce has undergone a paradigm shift. Vietnam, a burgeoning Southeast Asian economy, is no exception to this transformative wave. As e-commerce continues to gain momentum in the country, the role of e-commerce lawyers in Vietnam becomes increasingly critical.

E-commerce legal landscape in Vietnam

There is expectation of laws that fill the missing gap for foreign investors with particulars in conducting e-commerce activities in Vietnam which supplemented regulations on management of e-commerce activities for foreign investors setting up business in Vietnam.

Specifically, there is a draft decree to supplement Decree 52/2013/ND-CP that (i) adds specific regulations on foreign traders and organizations conducting e-commerce activities in Vietnam; (ii) supplements market access conditions for foreign investors in accordance with the Law on Investment; and (iii) provides the exclusion of foreign investors investing in economic organizations that are innovative and creative enterprises in order to promote innovation activities in accordance with the law on support small and medium enterprises.

In particular, the draft decree also provides plans for e-commerce activities of foreign investors in Vietnam. According to the draft decree, foreign investors can set up an e-commerce website under the Vietnamese domain name or an e-commerce website with the display language in Vietnamese. The option of setting up an e-commerce exchange floor with a specified number of transactions from Vietnam in a year is also considered for selection.

In addition, foreign investors setting up e-commerce websites in Vietnam must notify and register e-commerce activities according to regulations. At the same time, they need to ensure the fulfillment of obligations on protection the interests of consumers. The quality of the goods need to be protected by their representative office, designation of a legal representative in Vietnam.

Foreign investors selling goods on Vietnamese e-commerce exchanges must comply with the operating regulations of e-commerce exchanges in Vietnam. When providing Vietnam e-commerce exchanges, foreign investors are responsible for verifying their identities. In addition, foreign investors conducting e-commerce activities are responsible for complying with the provisions of Vietnamese law on the right to export and import goods in accordance with the laws.

The draft decree also specifies that e-commerce service is a conditional market access industry for foreign investors. Market access conditions will also be considered accordingly. In addition, the control and domination of enterprises providing e-commerce services are also clearly regulated.

In the coming time, Vietnam will continue to receive comments to supplement and complete the draft of decree amending Decree 52 on e-commerce activities. It is important to create a clear and appropriate e-commerce operating environment to attract foreign investors with experience and capability to invest, set up company and operate in Vietnam in the area of e-commerce to facilitate goods transaction, protect intellectual property, reduce cost. However, it is also equally important to ensure the management of investment activities of foreign investors in the field of e-commerce in Vietnam. 

How E-commerce Lawyers in Vietnam Matter?

The E-Commerce Boom in Vietnam

Vietnam has experienced a remarkable surge in e-commerce activities over the past decade. Factors such as increased internet penetration, a tech-savvy population, and growing consumer trust in online platforms have contributed to this boom. As a result, both local entrepreneurs and international businesses are eager to tap into the Vietnamese e-commerce market.

However, the dynamic nature of e-commerce brings forth an array of legal complexities and challenges. From data privacy concerns and consumer protection issues to intellectual property disputes and regulatory compliance, the e-commerce sector in Vietnam demands adept legal guidance.

Navigating Regulatory Frameworks

One of the primary reasons why e-commerce lawyers in Vietnam matter is the intricate web of regulations governing this industry. Navigating these frameworks effectively can be a daunting task for businesses, especially those unfamiliar with the local legal landscape.

E-commerce lawyers in Vietnam can play a pivotal role in helping businesses comprehend and comply with Vietnam’s e-commerce laws and regulations. They provide insights into critical aspects such as online advertising rules, e-payment systems, and taxation of e-commerce transactions. With their expertise, businesses can ensure that their operations align with Vietnamese laws, minimizing legal risks and liabilities.

Protecting Intellectual Property Rights

In the digital realm, protecting intellectual property rights is paramount. E-commerce platforms are vulnerable to various forms of infringement, including counterfeiting, trademark violations, and copyright disputes. E-commerce lawyers in Vietnam specialize in safeguarding these rights, ensuring that businesses can operate on a level playing field.

They help businesses register trademarks, enforce copyright protections, and take action against counterfeit products. In doing so, they create an environment where businesses can thrive without the constant threat of intellectual property theft.

Data Privacy and Security

The issue of data privacy and security has gained prominence globally, and Vietnam is no exception. With the implementation of regulations like the Law on Cybersecurity and personal data protection laws, ensuring compliance is essential for e-commerce businesses.

E-commerce lawyers in Vietnam assist businesses in crafting robust data protection strategies, drafting privacy policies, and ensuring compliance with Vietnam’s evolving data protection framework. This is crucial for maintaining consumer trust and avoiding potentially crippling legal repercussions.

Resolving Disputes

Disputes are an inevitable part of any business landscape, and e-commerce is no different. Whether it’s conflicts with customers, suppliers, or other businesses, having skilled e-commerce lawyers in Vietnam by your side can make all the difference.

These legal experts are adept at dispute resolution through negotiation, mediation, or litigation if necessary. Their ability to navigate both online and offline disputes ensures that businesses can resolve conflicts efficiently and effectively.

In the age of digital commerce, the role of e-commerce lawyers in Vietnam cannot be overstated. They serve as guardians of legal compliance, protectors of intellectual property, and facilitators of smooth business operations. For any business looking to thrive in Vietnam’s vibrant e-commerce landscape, partnering with knowledgeable e-commerce lawyers in Vietnam is not just a choice; it’s a necessity. In a world where every click matters, these legal professionals are the keystones to sustainable success.

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Navigating Legal Frameworks for Online Business: Comment from E-Commerce Lawyers

 In the swiftly evolving landscape of online commerce, the legal intricacies surrounding e-commerce can often appear daunting to even the most experienced business owners. In Vietnam, e-commerce lawyers play a pivotal role in navigating the complexities of digital trade. Their expertise is crucial for ensuring that online transactions not only meet rigorous standards for transparency and authenticity but also adhere to the country’s stringent intellectual property laws.

E-Commerce Potential in Vietnam?

Vietnam’s e-commerce landscape has been growing at an unprecedented rate, riding the wave of increased digital connectivity and a burgeoning young population eager to embrace the convenience of online shopping.

As one of Southeast Asia’s fastest-growing e-commerce markets, Vietnam presents a fertile ground for digital enterprises, bolstered by a tech-savvy consumer base and government initiatives that encourage digital economy.

The potential for e-commerce business in Vietnam is vast, with projections indicating a trajectory of continued growth, fueled by rising internet penetration and a growing comfort with digital transactions among the Vietnamese populace.

With this promising backdrop, e-commerce businesses in Vietnam are not only proliferating but also diversifying, offering a plethora of services that range from online retail to innovative financial technology solutions.

As the sector expands, the role of e-commerce lawyers becomes increasingly critical. E-commerce lawyers in Vietnam are the vanguards of navigating the intricate legalities that govern online businesses, ensuring compliance with local regulations, and safeguarding against the nuances of international trade laws.

Their expertise enables businesses to tap into Vietnam’s e-commerce potential while aligning with the rigorous standards set forth by the authorities, marking the importance of legal acumen in the pursuit of digital commercial success.

How E-Commerce Lawyers Could Help Navigate Legal Framework?

The Vietnamese government, through Decree No. 85/2021/ND-CP, amending Decree 52/2013/ND-CP has enacted specific regulations pertaining to the transparency of product and service information in e-commerce transactions.

This move, which emphasizes the need for clarity to combat counterfeit goods and protect intellectual property rights, underscores the importance of e-commerce lawyers in the business registration process.

E-commerce lawyers in Vietnam are instrumental in detailing the mandatory information that must be disclosed on e-commerce websites, such as product labels compliant with Vietnamese laws, excluding unique product-specific details like production dates and serial numbers. Moreover, it is important to ensure that sellers disclose the necessary licensing information for products and services that fall under regulated or conditional business categories.

Enhanced responsibility for e-commerce service providers in managing their platforms is another critical area where e-commerce lawyers in Vietnam prove indispensable.

Under the aforementioned decree, e-commerce platforms must now remove illegal content within 24 hours upon request from competent state authorities. This quick-response mechanism is designed to tackle infringements in the digital space effectively. E-commerce lawyers also collaborate with intellectual property rights holders to remove infringing products and provide state agencies with information about violators.

For e-commerce websites with online ordering functions, the responsibilities expand further. E-commerce lawyers assist in designating points of contact for online information provision to state management agencies regarding potentially illegal activities. These points of contact are required to furnish information within 24 hours of receiving a request, thereby facilitating inspections, regulatory compliance, and consumer dispute resolutions.

The Decree also narrows down the subjects required to report to the Ministry of Industry and Trade, based on the nature of the website’s interactivity and transactional capabilities. E-commerce lawyers in Vietnam help classify which websites must complete administrative procedures based on whether they possess online ordering functionalities.

In terms of social media platforms, the Decree positions certain social networks as e-commerce trading floors if they display specific characteristics. Here, the role of e-commerce lawyers becomes even more significant as they guide platforms through the legal obligations akin to those of e-commerce trading floors, including the removal of content and cooperation with authorities.

Furthermore, e-commerce lawyers in Vietnam are pivotal in regulating foreign sellers on e-commerce platforms. They ensure that foreign sellers comply with Vietnamese import/export regulations or appoint commercial agents within the country, adhering to local laws. The Decree specifically tasks e-commerce lawyers with managing the duties of foreign sellers, safeguarding consumer rights, and fulfilling tax obligations.

E-commerce lawyers also address the market access conditions for foreign investors in Vietnam’s e-commerce sector, ensuring compliance with the investment laws. They help navigate the legal terrain for foreign businesses, including the need for a dominant market position assessment by the authorities.

Lastly, e-commerce lawyers handle the certification of electronic contracts. They assist in the registration of electronic contract authentication services, a process that the Ministry of Industry and Trade administers online. This service is an essential facet of ensuring that digital contracts are legally binding and recognized by the law.

E-commerce lawyers in Vietnam serve as navigators in the digital marketplace, ensuring that businesses operate within the legal frameworks established by Vietnamese law. Their expertise is not merely a valuable asset; it is a necessity for any enterprise looking to thrive in Vietnam’s e-commerce ecosystem.

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Whats New in the Draft of the Decree on Amending the Decree 52 on E-Commerce?

 The Decree No.52/2013/ND-CP (Decree 52) on e-commerce will be effective from July 1st, 2013. However, this Decree does not have specific regulations on e-commerce activities for foreign investors conducting e-commerce activities in Vietnam. Therefore, the draft of the Decree amending Decree 52 shall fill the missing gap for foreign investors with particulars in conducting e-commerce activities in Vietnam.

The draft decree has supplemented regulations on management of e-commerce activities for foreign investors setting up business in Vietnam. Specifically, the draft decree (i) adds specific regulations on foreign traders and organizations conducting e-commerce activities in Vietnam; (ii) supplements market access conditions for foreign investors in accordance with the Law on Investment; and (iii) provides the exclusion of foreign investors investing in economic organizations that are innovative and creative enterprises in order to promote innovation activities in accordance with the law on support small and medium enterprises.

In particular, the draft decree also provides plans for e-commerce activities of foreign investors in Vietnam. According to the draft decree, foreign investors can set up an e-commerce website under the Vietnamese domain name or an e-commerce website with the display language in Vietnamese. The option of setting up an e-commerce exchange floor with a specified number of transactions from Vietnam in a year is also considered for selection.

In addition, foreign investors setting up e-commerce websites in Vietnam must notify and register e-commerce activities according to regulations. At the same time, they need to ensure the fulfillment of obligations on protection the interests of consumers. The quality of the goods need to be protected by their representative office, designation of a legal representative in Vietnam.

Foreign investors selling goods on Vietnamese e-commerce exchanges must comply with the operating regulations of e-commerce exchanges in Vietnam. When providing Vietnam e-commerce exchanges, foreign investors are responsible for verifying their identities. In addition, foreign investors conducting e-commerce activities are responsible for complying with the provisions of Vietnamese law on the right to export and import goods in accordance with the laws.

The draft decree also specifies that e-commerce service is a conditional market access industry for foreign investors. Market access conditions will also be considered accordingly. In addition, the control and domination of enterprises providing e-commerce services are also clearly regulated.

In the coming time, Vietnam will continue to receive comments to supplement and complete the draft of decree amending Decree 52 on e-commerce activities. It is important to create a clear and appropriate e-commerce operating environment to attract foreign investors with experience and capability to invest, set up company and operate in Vietnam in the area of e-commerce to facilitate goods transaction, protect intellectual property, reduce cost. However, it is also equally important to ensure the management of investment activities of foreign investors in the field of e-commerce in Vietnam.

Read More

Whats New in the Draft of the Decree on Amending the Decree 52 on E-Commerce?

 The Decree No.52/2013/ND-CP (Decree 52) on e-commerce will be effective from July 1st, 2013. However, this Decree does not have specific regulations on e-commerce activities for foreign investors conducting e-commerce activities in Vietnam. Therefore, the draft of the Decree amending Decree 52 shall fill the missing gap for foreign investors with particulars in conducting e-commerce activities in Vietnam.

The draft decree has supplemented regulations on management of e-commerce activities for foreign investors setting up business in Vietnam. Specifically, the draft decree (i) adds specific regulations on foreign traders and organizations conducting e-commerce activities in Vietnam; (ii) supplements market access conditions for foreign investors in accordance with the Law on Investment; and (iii) provides the exclusion of foreign investors investing in economic organizations that are innovative and creative enterprises in order to promote innovation activities in accordance with the law on support small and medium enterprises.

In particular, the draft decree also provides plans for e-commerce activities of foreign investors in Vietnam. According to the draft decree, foreign investors can set up an e-commerce website under the Vietnamese domain name or an e-commerce website with the display language in Vietnamese. The option of setting up an e-commerce exchange floor with a specified number of transactions from Vietnam in a year is also considered for selection.

In addition, foreign investors setting up e-commerce websites in Vietnam must notify and register e-commerce activities according to regulations. At the same time, they need to ensure the fulfillment of obligations on protection the interests of consumers. The quality of the goods need to be protected by their representative office, designation of a legal representative in Vietnam.

Foreign investors selling goods on Vietnamese e-commerce exchanges must comply with the operating regulations of e-commerce exchanges in Vietnam. When providing Vietnam e-commerce exchanges, foreign investors are responsible for verifying their identities. In addition, foreign investors conducting e-commerce activities are responsible for complying with the provisions of Vietnamese law on the right to export and import goods in accordance with the laws.

The draft decree also specifies that e-commerce service is a conditional market access industry for foreign investors. Market access conditions will also be considered accordingly. In addition, the control and domination of enterprises providing e-commerce services are also clearly regulated.

In the coming time, Vietnam will continue to receive comments to supplement and complete the draft of decree amending Decree 52 on e-commerce activities. It is important to create a clear and appropriate e-commerce operating environment to attract foreign investors with experience and capability to invest, set up company and operate in Vietnam in the area of e-commerce to facilitate goods transaction, protect intellectual property, reduce cost. However, it is also equally important to ensure the management of investment activities of foreign investors in the field of e-commerce in Vietnam.

Read More