Draft E-Commerce Law of Vietnam 2025: Towards a Comprehensive Legal Framework for the Digital Economy

  In the era of the Fourth Industrial Revolution and the rapid expansion of digital technology, e-commerce (E-commerce) has become an indispensable part of the global economy. In Vietnam, e-commerce not only creates opportunities for businesses and consumers but also poses challenges in management and legal frameworks. To address these needs and provide a robust legal foundation for e-commerce activities, the Ministry of Industry and Trade has proposed the development of the E-commerce Law, expected to be submitted to the National Assembly in 2025.

The Need for the E-Commerce Law

Currently, e-commerce activities in Vietnam are mainly governed by Decree No. 52/2013/ND-CP and Decree No. 85/2021/ND-CP. However, the rapid growth of technology and the emergence of new business models have revealed several limitations in these regulations:

• Limited scope of regulation: Existing decrees do not adequately cover the complexities and diversity of e-commerce, especially new business models like livestream sales or cross-border e-commerce.
• Inconsistencies with other laws: Overlaps and inconsistencies between e-commerce regulations and other laws, such as the Law on Consumer Protection, the Law on Tax Administration, and the Law on Intellectual Property, create challenges in enforcement and management.
• Inadequate alignment with international standards: Vietnam needs a legal framework for e-commerce that aligns with international commitments and best practices in the context of global economic integration.

Thus, the development of the E-commerce Law is essential to establish a comprehensive, consistent, and effective legal framework, addressing practical demands and promoting the sustainable growth of e-commerce in Vietnam.

Objectives of the E-Commerce Law

The E-commerce Law aims to achieve the following objectives:

• Institutionalize the policies of the Party and the State on e-commerce: Ensure that e-commerce activities align with the orientation of digital economy development and international integration.
• Create a clear and transparent legal framework: Define the rights and obligations of parties participating in e-commerce, including domestic and international merchants, organizations, and individuals.
• Protect consumer rights: Ensure safety, privacy, and consumer rights in e-commerce transactions.
• Promote the development of the digital economy: Encourage innovation, technology application, and the growth of new business models in e-commerce.
• Strengthen state management: Enhance the effectiveness of management, supervision, and enforcement of violations in e-commerce, especially in cross-border activities.

Scope and Subjects of Application

The E-commerce Law will regulate activities related to the development, application, and management of e-commerce within Vietnam. Subjects of application include:

• Domestic merchants, organizations, and individuals: Businesses, organizations, and individuals engaged in e-commerce within the country.
• Foreign individuals residing in Vietnam: Foreigners living and conducting e-commerce activities in Vietnam.
• Foreign merchants and organizations operating in Vietnam: Businesses and organizations providing goods and services through e-commerce platforms to the Vietnamese market.

Key Provisions of the Draft E-Commerce Law

The draft E-commerce Law consists of 7 chapters with 40 articles, focusing on the following main contents:

1. General Provisions: Definitions, scope, subjects of application, and principles of e-commerce activities.

2. Electronic Contract Formation: Regulations on the formation of electronic contracts and the rights and obligations of parties in online transactions.

3. E-Commerce Activities:

• E-commerce platforms for selling goods: Conditions for operation and responsibilities of online selling platforms.
• Intermediary e-commerce platforms: Roles and responsibilities of intermediary platforms like marketplaces and online ordering applications.
• Cross-border e-commerce: Responsibilities of foreign merchants and organizations providing goods and services to Vietnamese consumers through online platforms.

4. Rights and Obligations of Parties in E-Commerce Transactions

The draft law outlines detailed rights and obligations for parties involved in e-commerce transactions, including:

• Sellers: Must provide complete and accurate information about products, services, transaction terms, and warranty policies. Sellers are also responsible for resolving complaints and fulfilling financial obligations.
• Buyers: Have the right to privacy, the right to cancel orders under certain conditions, and the right to complain in case of disputes. Buyers must comply with payment and product usage regulations.
• E-commerce platforms: Must monitor and verify seller information, establish consumer protection policies, and assist government authorities in oversight and violation handling.

5. Consumer Protection in E-Commerce

The draft law emphasizes the importance of protecting consumers in the digital environment, focusing on:

• Data Privacy: Ensuring the protection of personal information and granting consumers control over how their data is used by e-commerce platforms.
• Transaction Cancellation Rights: Allowing consumers to cancel transactions
• Dispute Resolution Mechanisms: Establishing fast and transparent mechanisms for resolving disputes among consumers, sellers, and platforms.

6. Taxation and Financial Responsibilities

Tax obligations are a critical aspect of the draft law, especially for:

• Foreign merchants: Foreign platforms generating revenue from e-commerce activities in Vietnam must register and fulfill tax obligations in accordance with Vietnamese laws.
• Withholding tax mechanism: The draft proposes implementing a withholding tax mechanism for e-commerce transactions to minimize tax evasion.

7. State Management of E-Commerce

To enhance governance, the draft E-commerce Law proposes measures to strengthen state management, including:

• Registration and Information Management Systems: E-commerce platforms must register with regulatory authorities and regularly report transaction data.
• Inspection and Supervision: Enhancing inspection and monitoring of e-commerce activities to promptly detect and address violations.
• International Cooperation: Promoting collaboration with international organizations and other countries to manage cross-border e-commerce and resolve international disputes.

Challenges in Implementing the E-Commerce Law

Despite its benefits, the E-commerce Law faces several challenges, such as:

• Implementation Consistency: Effective enforcement requires coordination across multiple agencies and sectors.
• Digital Infrastructure: Significant investments are needed to improve digital infrastructure and ensure cybersecurity.
• E-commerce Fraud: Addressing fraud and scams in the online environment requires strict management and penalties.

Impact of the E-Commerce Law on the Digital Economy

Once enacted, the E-commerce Law is expected to bring numerous benefits:

• Business Development: Facilitate participation in e-commerce for businesses, especially small and medium enterprises (SMEs).
• Consumer Trust: Provide a safe and transparent legal environment, fostering consumer confidence in online transactions.
• International Integration: Ensure Vietnam’s legal framework aligns with commitments under free trade agreements and international standards.

The Draft E-Commerce Law of 2025 represents a significant step towards establishing a modern legal framework aligned with the development of the digital economy. With detailed and comprehensive regulations, the law aims to support the growth of e-commerce within Vietnam and position the country as a leading e-commerce hub in the region.

About ANT Lawyers, a Law Firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi,  and Danang, and will help customers in doing business in Vietnam.

Source: https://antlawyers.vn/library/draft-e-commerce-law-of-vietnam-2025.html

Read More

Vietnam Litigation Cost Ordinance 2024: A Powerful Step Toward Transparent and Fair Justice

  The Vietnam Litigation Cost Ordinance 2024, enacted on December 11, 2024, represents a transformative milestone in the country’s ongoing judicial reforms. With a clear and comprehensive framework, this ordinance sets the foundation for a fairer, more efficient legal process, addressing long-standing challenges associated with litigation costs in Vietnam.

In here, we’ll explore the ordinance in depth, focusing on its key provisions, implications, and how it advances access to justice and transparency.

Why Vietnam Needed a New Litigation Cost Ordinance

Before the introduction of the Vietnam Litigation Cost Ordinance 2024, litigation cost regulations in the country were fragmented. The previous ordinance primarily covered costs such as forensic examinations and witness fees. However, economic development, societal changes, and the increasing complexity of legal proceedings revealed critical gaps in the legal framework.

The new ordinance was designed to modernize Vietnam’s approach to litigation costs, ensuring clarity, fairness, and alignment with international practices. It addresses a broad spectrum of litigation costs in Vietnam, offering structured guidelines for cost calculation, payment, and resolution of disputes.

Key Categories of Vietnam Litigation Costs

The ordinance provides a detailed classification of litigation costs, making it easier for all parties involved in a legal dispute to understand their obligations. The key categories include:

1. Forensic Examination Costs

These are costs associated with expert analyses required to uncover facts critical to a case. They apply in criminal, civil, and administrative disputes.

2. Asset Valuation Costs

In disputes involving property, litigation costs in Vietnam now include fees for determining the value of assets to ensure fair judgments.

3. Witness Costs

This includes travel expenses, accommodation, and remuneration for witnesses who are summoned to testify in court.

4. Interpretation Costs

Interpretation services are an essential component of cases with international elements. The ordinance ensures that these Vietnam litigation costs are clearly defined.

5. On-site Inspection Costs

These costs are incurred when courts conduct on-site inspections to evaluate evidence or property related to a case.

6.Judicial Delegation Abroad

For cross-border disputes, costs associated with legal actions abroad, such as notarization and translation, are explicitly covered.

This comprehensive approach provides transparency and reduces disputes over financial responsibilities during litigation.

Procedures for Handling Vietnam Litigation Costs

A significant achievement of the ordinance is the establishment of detailed procedures for managing litigation costs, ensuring efficiency and fairness:

1. Advance Payments

Parties requesting or initiating procedural actions are required to make advance payments. The relevant judicial authority provides a written notification specifying the amount and deadline for payment.

2. Final Settlement

After the procedural action is completed, the actual costs incurred are calculated. If the advance payment exceeds the actual amount, the surplus is refunded. Conversely, any shortfall must be paid by the responsible party.

This system ensures that litigation costs in Vietnam are handled transparently and equitably, preventing delays or financial disputes.

Exemptions and Reductions in Vietnam Litigation Costs

A standout feature of the ordinance is its commitment to promoting access to justice by offering exemptions and reductions for vulnerable groups.

Eligible individuals include:

• Children and minors.
• Elderly individuals receiving social welfare benefits.
• Persons with disabilities under state care.
• Members of poor or near-poor households.
• Ethnic minorities in economically disadvantaged areas.
• Family members of martyrs receiving monthly allowances.

These provisions ensure that financial constraints do not hinder individuals from seeking legal remedies, reflecting the ordinance’s focus on social equity.

Addressing Complaints About Vietnam Litigation Costs

The ordinance introduces a robust mechanism for resolving disputes over litigation costs.

Key elements include:

1. Authority for Complaint Resolution

Judicial authorities are tasked with addressing complaints related to cost calculations, delays in refunds, or improper advance payment requests.

2. Timely Resolutions

The ordinance mandates specific timelines for resolving complaints to prevent unnecessary delays and ensure fairness.

By providing a clear pathway for addressing grievances, the ordinance reinforces public confidence in Vietnam’s judicial system.

Positive Impacts of the Vietnam Litigation Cost Ordinance 2024

The Vietnam Litigation Cost Ordinance 2024 delivers several benefits, making it a transformative development for the country’s legal system:

1. Enhanced Transparency

Clearly defined cost categories and procedures reduce ambiguities, fostering trust and accountability in the judicial process.

2. Improved Access to Justice

Exemption and reduction policies ensure that vulnerable groups can participate in legal proceedings without financial burdens.

3. Streamlined Legal Processes

Standardized procedures for cost management minimize delays, enhancing the overall efficiency of legal proceedings.

4. Alignment with Global Standards

The ordinance aligns Vietnam’s legal framework with international practices, facilitating cross-border legal cooperation and boosting the country’s reputation as a modern jurisdiction.

Challenges in Implementing Vietnam Litigation Cost Reforms

Despite its potential, the ordinance’s implementation may encounter challenges:

1. Limited Public Awareness

Many individuals, particularly in remote areas, may lack knowledge of their rights and obligations under the new regulations.

2. Budgetary Constraints

Extensive exemption and reduction policies may strain state resources, especially in cases requiring significant financial support.

3. Oversight and Enforcement

Effective monitoring is essential to prevent misuse or mismanagement of litigation costs, but establishing robust oversight mechanisms requires time and investment.

d. Capacity Building for Judicial Authorities

Judges, court staff, and legal practitioners must be trained to apply the ordinance consistently and accurately.

Future Directions for Vietnam Litigation Costs

To maximize the ordinance’s effectiveness, several measures should be prioritized:

1. Public Awareness Campaigns

Educational initiatives, such as workshops and media campaigns, can help inform citizens about the ordinance and their rights regarding litigation costs in Vietnam.

2. Enhanced Training Programs

Ongoing training for judicial authorities is crucial to ensure uniform application of the ordinance across the country.

3. Development of Oversight Mechanisms

Independent oversight bodies should be established to monitor the implementation of the ordinance and address any potential issues.

4. Financial Support Mechanisms

The government could establish dedicated funds to subsidize litigation costs for vulnerable groups, ensuring that access to justice remains a priority.

Looking Ahead

The Vietnam Litigation Cost Ordinance 2024 is an achievement in the nation’s judicial reform efforts. By providing a transparent, fair, and comprehensive framework for managing litigation costs, the ordinance not only enhances efficiency but also ensures that justice is accessible to all.

However, the successful implementation of the ordinance will require ongoing efforts, including public education, capacity building, and robust oversight. With these measures, Vietnam is well-positioned to establish itself as a model of fairness and transparency in the legal domain, aligning its judiciary with international standards while addressing the unique needs of its citizens.

This reform is not merely about managing litigation costs in Vietnam, it is about fostering trust in the justice system and ensuring a brighter, more equitable future for all.

About ANT Lawyers, a Law Firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi,  and Danang, and will help customers in doing business in Vietnam.

Source: https://antlawyers.vn/disputes/vietnam-litigation-cost-ordinance-2024.html

Read More

12 Incredible Legal Impacts of the CPTPP and UK-Vietnam Trade for a Thriving Future

  

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP): A Legal Game-Changer in UK-Vietnam Trade

The CPTPP and UK-Vietnam trade relationship reached a historic milestone with the UK’s accession to the CPTPP on January 1, 2024. This monumental expansion added a new dynamic to global trade and presented unprecedented opportunities for Vietnam, both economically and legally. By combining a market of 500 million people and contributing 15% to the world’s GDP, the CPTPP is now a more powerful force with the United Kingdom’s inclusion.

For Vietnam, a founding member of the CPTPP, the potential lies not only in economic benefits but also in reshaping its legal framework to meet the demands of global trade. In here, we explore the legal implications of the CPTPP and UK-Vietnam trade, detailing how Vietnamese businesses and policymakers can capitalize on this opportunity while navigating the challenges.

Enhanced Legal Framework for Trade Agreements

The CPTPP and UK-Vietnam trade pact underscores the importance of a transparent and predictable legal environment. The CPTPP sets out advanced provisions in trade liberalization, which Vietnam must comply with to enjoy benefits such as tariff reductions, improved market access, and legal protections for investors.

Key Legal Requirements:

• Alignment of domestic laws with CPTPP commitments on labor rights, intellectual property, and environmental standards.

• Establishment of arbitration mechanisms for resolving trade disputes under the CPTPP framework.

Vietnam’s compliance with these requirements strengthens its credibility as a reliable trade partner, fostering investor confidence in its market.

Intellectual Property Protections: A New Era

One of the most significant aspects of the CPTPP and UK-Vietnam trade relationship is the enhanced protection of intellectual property (IP). The CPTPP introduces robust IP laws that cover trademarks, patents, copyrights, and trade secrets, aligning Vietnam’s legal framework with international standards.

Opportunities for Vietnamese Businesses:

• Protecting innovation and creativity, especially in the technology and pharmaceutical sectors.

• Preventing counterfeiting and unauthorized use of trademarks in global markets.

Challenges:

• Small and medium enterprises (SMEs) must invest in understanding and complying with IP regulations.

• Enforcement of IP rights remains a challenge due to limited resources and expertise.

Investment Dispute Mechanisms: Safeguarding Business Interests

The CPTPP provides a structured legal framework for resolving investment disputes, a crucial component for UK-Vietnam trade. The agreement includes provisions for investor-state dispute settlements (ISDS), allowing investors to seek redress if their rights are violated.

Benefits for UK Investors in Vietnam:

• Legal certainty and recourse in case of expropriation or discriminatory treatment.

• Encouragement of long-term investments in sectors such as renewable energy and infrastructure.

For Vietnam, adhering to ISDS mechanisms enhances its reputation as an investment-friendly destination, attracting high-value projects from the UK.

Labor Standards: Legal Obligations and Opportunities

Labor laws play a critical role in the CPTPP and UK-Vietnam trade framework. Vietnam must adhere to stringent labor standards, including:

• Freedom of association and collective bargaining.

• Prohibition of forced and child labor.

• Safe and fair working conditions.

Positive Impact:

• Improved working conditions and wages for Vietnamese workers.

• Access to high-value UK markets that prioritize ethical supply chains.

Challenges:

• Vietnamese businesses, particularly in labor-intensive industries like textiles and agriculture, must invest in compliance with these standards to avoid legal and reputational risks.

Tariff Reductions and Legal Compliance

The CPTPP eliminates tariffs on 95% of goods traded among member countries, making UK-Vietnam trade more competitive. However, businesses must navigate complex rules of origin to qualify for these tariff reductions.

Legal Considerations:

• Documentation and verification of supply chain processes to meet origin requirements.

• Risk of penalties or disqualification if rules of origin are violated.

Vietnamese exporters should establish robust legal processes to ensure compliance and maintain access to preferential tariffs.

E-Commerce and Digital Trade: A Legal Frontier

The CPTPP and UK-Vietnam trade relationship benefits significantly from the agreement’s provisions on e-commerce and digital trade. These rules aim to create a fair and secure digital environment, enabling cross-border data flows while safeguarding privacy and intellectual property.

Legal Implications:

• Vietnamese businesses engaged in e-commerce must comply with data protection regulations and cybersecurity laws.

• The government needs to harmonize domestic laws with CPTPP standards to attract UK digital service providers.

Environmental Commitments and Trade Incentives

Sustainability is a core component of the CPTPP, and its legal requirements have direct implications for CPTPP and UK-Vietnam trade. Members must enforce laws to combat illegal logging, overfishing, and pollution while promoting green technologies.

Opportunities for Vietnam:

• Access to UK investments in renewable energy projects.

• Incentives for businesses adopting environmentally friendly practices.

Challenges:

• Aligning domestic environmental laws with stringent CPTPP provisions.

• Monitoring and enforcement of compliance among businesses.

Financial Services and Legal Access

The UK’s expertise in financial services is a boon for CPTPP and UK-Vietnam trade, offering Vietnamese firms access to advanced financial systems and capital markets. However, the CPTPP imposes specific legal obligations, such as transparency and non-discrimination in financial regulations.

Key Legal Points:

• Equal treatment for UK and Vietnamese financial service providers.

• Streamlined procedures for cross-border financial transactions.

Vietnam must modernize its financial regulatory framework to meet these commitments and foster closer economic ties with the UK.

Dispute Resolution: Strengthening Legal Capacity

The CPTPP establishes robust mechanisms for resolving trade disputes, including state-to-state and investor-to-state disputes. This aspect is vital for ensuring fairness and predictability in UK-Vietnam trade.

Legal Requirements:

• Training legal professionals in arbitration and mediation under CPTPP rules.

• Strengthening Vietnam’s judicial system to handle international trade disputes.

Opportunities in Public Procurement

The CPTPP includes provisions for transparency and fairness in government procurement processes, creating opportunities for UK firms to bid on public projects in Vietnam.

Legal Implications:

• Vietnam must ensure its procurement laws align with CPTPP standards, emphasizing transparency and non-discrimination.

• Vietnamese businesses should prepare to compete with international bidders by enhancing compliance with procurement regulations.

Capacity Building for SMEs

Small and medium-sized enterprises (SMEs) are crucial to CPTPP and UK-Vietnam trade, but they often struggle to navigate the legal complexities of the CPTPP.

Support Mechanisms:

• Government-led initiatives to educate SMEs on CPTPP compliance.

• Legal aid and financial support to help SMEs adapt to new trade regulations.

Strategic Partnerships for Long-Term Gains

The CPTPP and UK-Vietnam trade relationship offers a platform for strategic partnerships in key industries such as technology, education, and healthcare.

Legal Considerations:

• Drafting clear and enforceable agreements to protect the interests of both parties.

• Ensuring compliance with international standards to attract UK partners.

A Transformative Path for CPTPP and UK-Vietnam Trade

The inclusion of the United Kingdom in the CPTPP is a watershed moment for global trade, and Vietnam is uniquely positioned to reap the benefits. From enhanced market access to strengthened legal frameworks, the CPTPP has the potential to revolutionize UK-Vietnam trade.

However, realizing these opportunities requires a proactive approach. Vietnamese businesses and policymakers must embrace legal reforms, invest in capacity building, and foster partnerships that align with CPTPP commitments. With strategic planning and collaboration, the CPTPP and UK-Vietnam trade relationship can usher in a new era of growth, sustainability, and prosperity for both nations.

About ANT Lawyers, a Law Firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi,  and Danang, and will help customers in doing business in Vietnam.

Source: https://antlawyers.vn/update/impacts-of-the-cptpp-and-uk-vietnam-trade.html

Read More