Vietnamese businesses in the face of the wave of international e-commerce platforms: Benefits and challenges

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Ms. Le Thi Ha, Head of E-commerce Management Department

Ms. Le Thi Ha, Head of the Department of E-commerce Management (Department of E-commerce and Digital Economy - Ministry of Industry and Trade) shared about this trend, analyzed the benefits and difficulties that the Vietnamese market is facing as well as management and control solutions to protect the rights of consumers and maintain balance for domestic enterprises.

Recently, many international e-commerce platforms have tended to increase their presence in the Vietnamese market, with very attractive promotional information for consumers. From a management perspective, how do you evaluate this appearance?

E-commerce is a rapidly growing field not only in Vietnam but also around the world, attracting many foreign investors, especially in the cross-border e-commerce sector. The Vietnamese e-commerce market is currently developing quite stably and is considered to have a very high growth rate in the Southeast Asian region. Recently, some cross-border e-commerce platforms such as Temu have appeared with a new model, creating new competitiveness compared to the cross-border e-commerce platforms we already know.

Since September and October this year, we have seen many products from such e-commerce platforms flooding the Vietnamese market, creating significant attention.

So how does the emergence of international e-commerce platforms such as Temu, 1688, Shein affect domestic production and business, especially Vietnamese enterprises?

When there is a new opportunity, we need to look at it from two aspects: positive and negative. On the positive side, when low-priced and diverse goods flood into Vietnam, consumers are the first beneficiaries. They have more product choices from consumer goods, fashion, to technology at affordable prices.

For domestic enterprises, competition from international e-commerce platforms can encourage them to improve product quality and adjust prices to compete better. However, the negative side is that imported products from international platforms have tax advantages compared to domestic goods. According to Decision 78/QD-TTg of the Prime Minister, goods under VND one million sent via express delivery service are exempt from import tax, and this creates a certain advantage for foreign goods.

In addition, international e-commerce platforms are often invested in large scale and have methodical sales policies. Therefore, Vietnamese businesses, especially small and medium enterprises, face no small pressure in retaining consumers.

What solutions does the Ministry of Industry and Trade currently have to review and control international e-commerce platforms with cheap goods and many incentives?

Currently, e-commerce platforms such as Temu or other international platforms must comply with Vietnamese e-commerce laws, specifically Decree 52/2013/ND-CP and Decree 85/2021/ND-CP. If a platform has a Vietnamese language and domain name, it must comply with legal regulations when operating in Vietnam.

We have increased monitoring, coordinated with agencies within the Ministry of Industry and Trade to contact and work directly with the legal teams of cross-border platforms subject to Vietnamese law to ensure that these platforms understand and comply with Vietnamese law.

In addition, we focus on four main areas to control goods from international e-commerce platforms.

Can you share more about the four control areas that the Ministry of Industry and Trade is focusing on?

First, in the term of taxes, we are coordinating with the General Department of Customs, the unit is responsible for developing Decision 78, to propose tax solutions for imported goods under VND one million, ensuring a balance between domestic and imported goods, and I understand that the General Department of Customs is revising Decision 78.

The second is to protect consumer rights. The Department of E-commerce and Digital Economy has coordinated with the National Competition Commission to review and raise consumer’s awareness about shopping on international e-commerce platforms in order to minimize risks.

Third, we cooperate with the General Department of Market Management and the General Department of Customs to strictly control the import and circulation of goods from cross-border platforms in the domestic market. In particular, for platforms that do not comply with Vietnamese law, we will coordinate with the Ministry of Information and Communications to take measures.

The Department of E-commerce and Digital Economy has proposed to the Minister of Industry and Trade and reported to the Prime Minister on the draft dispatch to strengthen the management of e-commerce activities in the new period. This is a solution to ensure a healthy e-commerce environment, protect consumers and support the development of domestic enterprises.

Do you have any recommendations for Vietnamese consumers when shopping on international e-commerce platforms?

Consumers should be more responsible and cautious when shopping on cross-border e-commerce platforms, especially those that have not been certified by the Ministry of Industry and Trade. The list of licensed e-commerce platforms has been published on the e-commerce management information page at online.gov.vn. This is a basis for consumers to refer to and protect themselves from risks.

We recommend that consumers carefully check information about product origin, return and warranty policies when purchasing international products to avoid difficulties in protecting their rights.