In a decisive move to foster a more trustworthy and mature digital marketplace, the National Assembly passed the comprehensive Law on E-Commerce on 10 December 2025. Taking effect on 1 July 2026, this legislation represents a pivotal regulatory shift, imposing stricter standards across the board to ensure sustainable growth for a sector that is a cornerstone of Vietnam's digital economy.

The new law arrives amid the explosive growth of Vietnam's e-commerce sector, now a critical economic pillar accounting for 10% of nationwide retail and driving two-thirds of the digital economy's value. However, this rapid expansion has outpaced existing regulations, exposing critical gaps in areas from tackling counterfeit goods and intellectual property infringement to managing cross-border trade, ensuring product traceability, protecting consumers, and safeguarding domestic producers. A robust legal framework has become urgently necessary to secure the sector's sustainable future.

The new law introduces a structure designed to address modern complexities, from social commerce to cross-border trade. Key highlights include:

Precise Platform Classification

Moving beyond a one-size-fits-all approach, the law establishes a four-tier system: (i) Direct business platforms, (ii) Intermediary platforms, (iii) Social networks with e-commerce functions (e.g., TikTok Shop), and (iv) Multi-service integrated platforms. This ensures regulations are tailored to the specific role and risk profile of each platform type.

Heightened Platform Accountability

Platform operators are redefined from "passive intermediaries" to "active gatekeepers", bearing significantly heightened compliance duties. Core obligations include:
   •   Mandatory seller verification: All domestic sellers must be verified via the national VNeID system,
while foreign sellers must provide valid legal documentation.
   •   Proactive takedown duty: Platforms must remove illegal content upon request from competent
authorities.
   •   Joint liability: A critical new provision holds platforms jointly liable for seller-caused damages if they fail to comply with their legal obligations, marking a major shift in consumer protection.

Regulating Modern Sales Channels

The law now explicitly regulates livestream selling and affiliate marketing, directly targeting concerns about products with unclear origins promoted by influencers. Individuals in this space are bound by new transparency and consumer protection duties. Consequently, platform operators must verify livestreamers' identities, implement real-time feedback and complaint mechanisms during broadcasts, and archive livestream audio and video data as mandated.

Governing Cross-Border E-Commerce

The law closes enforcement gaps for foreign entities operating in Vietnam without a physical presence.
   •   Local Representation Mandate: While not required to establish a local subsidiary, foreign platforms
must appoint an authorised legal representative in Vietnam. This entity is tasked with handling compliance, disputes, and regulatory communication.
   •   Enhanced Liability & Data Rules: The appointed local representative is subject to joint liability for the platform's adherence to Vietnamese law. The law also stipulates stronger requirements for local data storage and consumer rights protection.

Driving Marketplace Integrity

To cultivate genuine competition, the law mandates full seller disclosure of product origins, ingredients, and quality standards. It bans deceptive advertising related to uses, quality, or certifications, making sellers legally responsible for misleading claims, which is a direct move to eliminate exaggerated marketing.

While the law sets broad principles, detailed operational rules will be outlined in forthcoming decrees and circulars. These implementing documents, expected before the 1 July 2026 effective date, will provide clarity on critical areas such as verification processes, cross-border obligations, algorithm transparency, and formal compliance procedures for foreign platforms.

This legislative overhaul is more than just regulation but a foundational upgrade for Vietnam's digital trading ecosystem. Experts envision a transformed landscape: a high-speed, data-powered trading highway where every order creates cascading value, each livestream operates as a trusted sales engine, and local specialities can be scaled into national digital brands - all within a safer, more accountable, and competitive marketplace.

Source:
https://vietnamlawmagazine.vn/e-commerce-at-turning-point-as-new-law-sets-higher- standards-in-
2026-76435.html (English)
https://vtv.vn/luat-thuong-mai-dien-tu-hieu-luc-tu-1-7-2026-minh-bach-thuat-toan- tang-quan-ly-san-
ngoai-100260106222305618.htm (Vietnamese)