New highlights of E-Commerce policies in 2022

10 Tháng Một 2022

On September 25, 2021, the Vietnamese government issued Decree No. 85/2021/NĐ-CP amendments to Decree No. 52/2013/NĐ-CP dated may 16, 2013 on e-commerce. Accordingly, Decree No. 85/2021/NĐ-CP contains the following highlights:

1. E-commerce activities of foreign traders and organizations

E-commerce activities of foreign traders and organizations are new provisions under Decree No. 85/2021/NĐ-CP.

Foreign traders or organizations setting up websites for the provision of e-commerce services in Vietnam are those operating in one of the following forms:

–  An e-commerce website set up under Vietnam’s domain name;

–  An e-commerce website displayed in the Vietnamese language;

–  An e-commerce website that has more than 100.000 transactions originated in Vietnam within a year.

The foreign traders and organizations setting up website providing e-commerce services in Vietnam in the above forms shall follow procedures for registration of e-commerce activities as prescribed in Decree No. 85/2021/NĐ-CP  and establishment of a representative office in Vietnam in accordance with regulations of law or appoint an authorized representative in Vietnam.In addition, Decree No. 85/2021/NĐ-CP is quite detailed about market access conditions for foreign investors in the field of e-commerce. Accordingly, market access conditions, including:

–  Foreign investors perform e-commerce activities in Vietnam in accordance with Clause 1, Clause 2 Article 21 of the Law on investment, including investment in establishment of a business organization and investment in the form of capital contribution or purchase of shares or stakes.

–  In the case of a foreign investor that controls one or more enterprises in the list of 05 leading e-commerce enterprises in Vietnam announced by the Ministry of Industry and Trade shall be subject to the Ministry of Public Security’s assessment of national security conditions.

2. Supplementing responsibilities of sellers for providing information about their goods/services

Information about goods published on websites must include required information shown on labels of goods as prescribed by the Law on labeling of goods, except distinguishing characteristics of each product except distinguishing characteristics of each product such as date of manufacture, expiry date, lot number, chassis number or engine number.

A seller of goods/services subject to certain business conditions must publish information about number, issue date and issuing authority of the license, certificate of eligibility, certification, confirmation or another document type as provided by relevant laws on business conditions for trading of such goods/services.

3. Supplementing regulations on the policy of goods inspection

According to Decree No. 85/2021/NĐ-CP, one of the general trading conditions for goods or services that must be stated on the sales e-commerce website is the policy on inspection of goods.

4. Supplementing forms of operation of e-commerce trading floors

According to Decree 85/2021/NĐ-CP, there are also four types of e-commerce floor operations, including:

a.  A website that allows its members to open booths for displaying/promoting their goods or services;

b.  A website that allows its members to open accounts to carry out the conclusion of contracts with customers;

c.  A website that has specific trading categories or tabs that allow its members to post listings of goods and services;

d.  A social network that operates in one of the forms specified in Points a, b, c of this Clause and makes its members directly or indirectly pay fees for carrying out such activities.”

The forms (a) and (c) remain unchanged from Decree 52/2013/NĐ-CP.

The other two types are innovative e-commerce floor operation forms.

Especially, Decree 85/2021/NĐ-CP included a social network that can be an e-commerce trading floor if it contains one of these characteristics as listed above a, b, and c, and its members directly or indirectly pay fees for carrying out such activities.

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