Vietnam's new e-commerce law takes effect: cross-border platforms and overseas sellers face stricter regulatory framework

Event Overview

On December 10, 2025, the Vietnamese National Assembly officially passed the Law on E-Commerce, which will take effect on July 1, 2026. This marks Vietnam's first use of dedicated legislation to establish a comprehensive regulatory framework covering emerging business forms such as cross-border e-commerce, platform operations, livestream sales, and affiliate marketing. Chapter IV of the new law focuses entirely on foreign-related e-commerce activities, establishing clearer and stricter legal requirements for foreign platforms and overseas sellers.

Market Background: Vietnam's High-Growth E-Commerce

According to data from Vietnam's Ministry of Industry and Trade, in 2025 Vietnam's e-commerce industry continued to expand rapidly, with a growth rate expected to exceed 25% and a market size reaching approximately $31 billion, equivalent to about 10% of the country's total retail sales of goods and consumer service revenue. Vietnam is not only one of the world's ten fastest-growing e-commerce markets but also ranks third in ASEAN by market size, behind only Indonesia and Thailand.

Strong growth has driven the need for legislation. Vietnam regards 2026-2030 as a critical stage for becoming a regional e-commerce export center. To achieve this goal, it needs not only stronger digital platforms and infrastructure but also a clear and effective regulatory framework that can keep pace with rapid market development. The introduction of the new law is a response to this need.

Platform and Brand Impact: Foreign Platforms Must Establish a Local Legal Presence

Updated Determination Criteria: Server Location Is No Longer Central

The new law no longer uses the server's location as the primary basis for determination; instead, it comprehensively assesses the platform's degree of participation in the Vietnamese market and its coverage of Vietnamese consumers. Specifically, foreign e-commerce platforms that meet any of the following conditions are deemed to be operating in Vietnam:

• Managed by a foreign organization and legally operated overseas;
• Provide a Vietnamese-language interface;
• Use Vietnam's country-code top-level domain ".vn";
• Reach the prescribed transaction threshold with Vietnamese buyers (except for direct-sales platforms that do not provide online ordering functionality).

For foreign intermediary e-commerce platforms, social media platforms engaged in e-commerce, and integrated e-commerce platforms with online ordering functionality, the new law further requires: before providing a Vietnamese-language interface or using the ".vn" domain, or after reaching the prescribed transaction threshold with Vietnamese buyers, the operator must establish a legal entity in Vietnam.

If an international treaty does not allow Vietnam to require foreign platforms to establish a legal entity, the relevant platform may adopt alternative measures: designate an authorized legal entity in Vietnam, deposit a guarantee with a Vietnamese bank to safeguard consumer compensation and the performance of national fiscal obligations, and meet other necessary operating conditions.

These provisions are intended to ensure that foreign platforms operating in the Vietnamese market have a clear and accountable legal presence, thereby improving the efficiency of regulation and enforcement.

Increased Responsibilities for Overseas Sellers### Increased Responsibilities for Overseas Sellers

The new law significantly strengthens the responsibilities of e-commerce platforms in transactions with overseas sellers. Representatives of foreign platforms must receive and handle complaints and disputes raised by Vietnamese buyers against foreign sellers, and foreign sellers themselves must also assume obligations similar to those of local sellers. Platforms must also take action to prevent the sale of counterfeit, smuggled, and intellectual-property-infringing goods, and handle goods in accordance with their commitments.

Regarding data retention, product-related information must be retained for at least one year, and contract and transaction data for at least three years. Sellers must be able to access and download their contract data, and must connect to the national e-commerce management system and submit reports.

Livestream Selling and Affiliate Marketing Included in Legislation for the First Time

For the first time, the new law incorporates livestream sales and affiliate marketing into the regulatory framework, covering both domestic and international activities. Relevant participants must verify identities, retain audio and video recordings for at least one year, suspend livestreams or remove content when violations are found, and provide information as required by competent authorities.

Consumer Trend Analysis: Enhanced Rights Protection in Cross-Border Shopping

As Vietnamese consumers increasingly purchase cross-border goods through platforms such as TikTok Shop, Shopee, and Lazada, consumer disputes in cross-border transactions are on the rise. The new law's compliance requirements for overseas sellers and its provisions on platform complaint-handling mechanisms directly respond to the difficulties consumers face in protecting their rights in cross-border shopping. The strengthened identity verification and product traceability measures help reduce the inflow of counterfeit and inferior goods and enhance consumer trust in cross-border online shopping.

In addition, livestream e-commerce has spread rapidly in Vietnam, but problems such as false advertising and lack of after-sales service occur frequently. The new law's requirement to retain livestream content and remove non-compliant content will promote the standardization of livestream selling, and in the long run help form healthy consumption habits.

Regional Market Impact: Southeast Asia and a Broader Regulatory Bellwether

Vietnam is not the only Southeast Asian country strengthening cross-border e-commerce regulation. Indonesia, Thailand, Malaysia, and others have all, to varying degrees, imposed local entity, data retention, and tax compliance requirements on foreign platforms. Vietnam's new law, with its systematic design on "cross-border elements," is likely to become a reference model for other emerging markets.

For global e-commerce platforms and cross-border brands, this means that access and operational costs across Southeast Asia will continue to rise. Compliance pressure comes not only from taxation, but also involves consumer protection, content regulation, and data governance.

Future Trends: Regulatory Technology Empowerment, with Compliance and Innovation Coexisting

The "technology for regulation and enforcement" orientation introduced by the new law shows that Vietnam is trying to use digital means to improve regulatory efficiency. The authorities have already established a national e-commerce management system, and in the future platforms may be required to connect in real time and automatically report transaction data.

It is foreseeable that after the law takes effect in 2026, foreign e-commerce platforms will accelerate adjustments to their local operating structures, while small and medium-sized cross-border sellers will face a higher risk of being eliminated. At the same time, a clear legal framework also provides certainty for long-term investment. For brands and enterprises determined to deeply cultivate the Vietnamese market, understanding and adapting to the new rules as early as possible will become a key factor in competition.

Key Perspectives- Vietnam's new e-commerce law for the first time systematically regulates cross-border e-commerce through special legislation, filling a legal gap. - Foreign platforms must establish an accountable legal presence in Vietnam, significantly raising the compliance threshold. - Live-streaming e-commerce and affiliate marketing are brought into the regulatory system, reflecting the urgent need for consumer protection. - Overseas sellers will bear the same responsibilities for product quality and consumer rights as local sellers. - With an e-commerce market size exceeding $31 billion, the new law aims to lay an institutional foundation for the next phase of growth.

Recommended Tags

#VietnamEcommerce #CrossBorderEcommerce #RegulatoryPolicy #ECommerceLaw #PlatformCompliance #LiveCommerce #SoutheastAsiaMarket

Related Markets

Vietnam, Southeast Asia, global cross-border e-commerce

Related Platforms

Cross-border platforms active in the Vietnam market, such as TikTok Shop, Shopee, Lazada, Tiki, and Amazon