Improving the Law on Electronic Commerce to ensure fair competition in the digital market

In recent years, electronic commerce (EC) has grown by 20–25% annually, accounting for roughly 10% of total retail sales and becoming an important driver of the digital economy. However, this activity has long relied mainly on decrees, revealing numerous gaps amid the surge of social-commerce platforms, livestream selling, and cross-border platforms, which exert significant pressure on the competitive environment.

Presenting the Submission Report at the plenary session, Minister of Industry and Trade Nguyen Hong Dien emphasized that the promulgation of the Law on Electronic Commerce is “very necessary and urgent” in order to internalize international commitments, create a legal framework for the healthy development of the digital economy, and “protect the rights and interests of Vietnamese consumers and enterprises amid increasingly intense competition in the digital environment.” The draft consists of 7 chapters and 48 articles, clearly classifies types of platforms, and specifies the responsibilities of owners of marketplaces, social networks engaged in Electronic Commerce (EC), multi-service platforms, EC support services, and activities involving foreign elements.

Many deputies highly appreciated the draft’s expansion of its regulatory scope to include social networks used for sales, livestream sales, and cross-border platforms; the addition of provisions on the identification of sellers; and the requirement that foreign platforms establish or authorize a legal entity in Viet Nam. According to opinions expressed at the plenary session, these provisions not only support tax administration and combat counterfeit goods, but also gradually “rebalance the playing field” between domestic enterprises and multinational platforms, thereby limiting the abuse of dominant positions and the imposition of unfavorable conditions on partners and small sellers.

One issue that attracted extensive debate was the competition mechanism in EC support services such as payment and logistics. If the law allows consumers to choose only from service providers announced by the platform, or if the platform connects with only a limited number of partners, then the actual scope of choice becomes restricted, creating advantages for “in-house” services aligned with the platform and posing risks of distorting competition.

During group discussions, Deputy La Thanh Tan (Hai Phong National Assembly Delegation) proposed further clarification of platform owners’ responsibilities, stressing that “no unequal conditions may be imposed among entities providing EC support services, and users’ rights to choose payment and delivery services must not be restricted.” According to the deputy, the law should require platforms to disclose information on service providers so that buyers have the right to choose, including cases where they use services not directly connected to the platform or where sellers arrange transportation themselves.

From the business community, opinions likewise warned against the risk of platforms exerting dominance to impose or “coercively recommend” certain service providers, making it difficult for sellers and buyers to access more cost-effective options. Representatives of logistics enterprises requested that the law clearly stipulate the principle that EC platforms “shall not obstruct or make it difficult” for users in choosing services, considering this an important test for ensuring competition in the digital market.

From an institutional perspective, during the group discussion of the Hanoi National Assembly Delegation, Deputy Nguyen Thi Lan stated that e-commerce is an intersectoral field, closely related to taxation, customs, finance, cybersecurity, and personal data protection. Therefore, the law needs to establish a clear coordination mechanism among agencies to avoid a situation in which each sector “manages its own part,” leading to overlaps and creating loopholes for tax evasion, commercial fraud, and unfair competition in cross-border transactions.

Opinions also emphasized that completing the Law on E-commerce must ensure alignment with the Law on Competition, the Law on Protection of Consumer Rights, legislation on personal data, intellectual property law, and others, in the context of Vietnam participating in many new-generation free trade agreements. This indicates that the goal is not merely to “tighten management” over enterprises in the digital environment, but to establish a coherent and transparent competitive framework, creating a corridor for Vietnamese enterprises to develop sustainably.

If further revised to specify the responsibilities of platforms, genuinely protect consumers’ choice rights, strengthen intersectoral coordination, and closely link with the legal system on competition, the Law on E-commerce will become an important legal leverage, contributing to the improvement of commercial competition law in the new integration context.

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