HCMC Industry and Trade authority to scrutinize e-commerce platforms

In its document to the Ministry of Industry and Trade proposing several solutions to manage and promote the development of e-commerce yesterday, the city Industry and Trade authority said that buying and selling in e-commerce are developing strongly, bringing many benefits to consumers and businesses. Besides the positive aspects, managing quality, preventing counterfeit goods, prohibited goods, protecting consumer rights, cybersecurity, personal data becomes more complicated with the participation of many suppliers, especially foreign suppliers.

E-commerce platforms and social networks have seen a concerning rise in deceptive trade practices, with advertising and promotions often exceeding 50 percent of the value of goods and services. These excessive promotional tactics undermine consumer rights and create unfair competitive conditions in the market.

Therefore, to protect consumer rights and ensure fair competition between domestic and foreign enterprises, the Department of Industry and Trade of Ho Chi Minh City proposes a number of solutions.

Specifically, the Ho Chi Minh City Department of Industry and Trade proposes several solutions, including resolutely preventing the display of advertisements and promotions that violate regulations on websites, e-commerce platforms, social networks in addition to application of sanctions such as preventing, temporarily suspending, or suspending domain names and applications in Vietnam, to websites, e-commerce platforms, social networks that repeatedly violate regulations.

In the realm of trade promotion, numerous indications of violations have emerged on e-commerce platforms. Recently, it has become increasingly common for advertising and promotions to surpass 50 percent of the value of goods and services on cross-border e-commerce platforms and social media networks. This trend adversely impacts consumer rights and fosters unfair competition within the market.

To safeguard consumer rights and foster fair competition between domestic and foreign businesses, the Ho Chi Minh City Department of Industry and Trade has proposed several measures. These include vigorously preventing the display of advertisements and promotions that violate regulations on websites, e-commerce platforms, and social media.

Moreover, the authority will impose stringent penalties, such as blocking, suspending, or shutting down domains and applications in Vietnam on websites, e-commerce platforms, and social media that repeatedly flout these rules while reviewing existing e-commerce regulations. Last but not least, the authority will inspect and assess compliance with regulations by international cross-border e-commerce platforms, create a level playing field for fair competition and protect the legal rights of domestic businesses.

Additionally, the Ho Chi Minh City Department of Industry and Trade recommends promptly completing regulations on taxation and customs procedures.

According to current regulations, the responsibilities of foreign traders or organizations with websites providing e-commerce services in Vietnam are: (i) coordinating with state management agencies to prevent transactions involving goods and services that violate Vietnamese law; (ii) fulfilling obligations to protect consumer rights and product quality as per Vietnamese law; (iii) adhering to reporting obligations as required.

However, there are no clear provisions regarding other obligations (like those for domestic e-commerce traders) or specific punitive measures for violations.

There is a necessity to conduct research and establish more precise regulations concerning tariffs, customs procedures, and the control of goods in the realm of cross-border e-commerce. The department underscores the significance of enhancing tax regulations and policies to guarantee that foreign e-commerce platforms implement a thorough tax payment system while operating in Vietnam.

Additionally, it is essential to ensure stringent oversight and equitable taxation of foreign products sold in Vietnam via cross-border e-commerce. Moreover, it is imperative to advance regulations pertaining to the collection, storage, and utilization of personal data of users in advertising initiatives, as well as to safeguard against infringements of the privacy rights of Vietnamese users.

The Department of Industry and Trade also recommends that the Ministry of Industry and Trade develop solutions to promote and support businesses in participating in e-commerce, connecting with international partners, participating in e-commerce trade fairs, global online exhibitions, and expanding export markets through cross-border e-commerce.

The Department of Industry and Trade also recommends that the Ministry of Industry and Trade develop solutions to promote and support businesses in participating in e-commerce, connecting with international partners, participating in e-commerce trade fairs, global online exhibitions, and expanding export markets through cross-border e-commerce.