1. Definition of e-commerce activities and classification of e-commerce platforms

Pursuant to Article 3 of the Law on E-Commerce 2025, e-commerce activities are defined as commercial activities conducted in whole or in part through electronic environments such as telecommunications networks, the Internet, computer networks, and information systems. (Clause 1, Article 3 of the Law on Electronic transactions 2023)

For further clarification, the Law also provides definitions and classifications of specific types of e-commerce platforms. An e-commerce platform refers to a digital platform established to facilitate e-commerce activities, including the following categories:

• Direct e-commerce platforms: E-commerce platforms established by organizations or individuals for the direct sale of goods or provision of services. (Clause 3, Article 3) 
• Intermediary e-commerce platforms: E-commerce platforms that allow other organizations or individuals to register accounts to conduct activities such as listing, selling goods, or providing services on such platforms (Clause 4, Article 3).
• Social networks with e-commerce functions: Social networking platforms that integrate at least one of the following functionalities: online communication, online ordering, or livestream selling, for the purpose of supporting contract formation and facilitating e-commerce activities. (Clause 5, Article 3) 
• Integrated e-commerce platforms: E-commerce platforms that allow the integration of other e-commerce platforms within their systems, excluding platforms that solely provide supporting services for e-commerce or online communication to such integrated platforms. (Clause 6, Article 3) 

The clarification of relevant concepts, particularly the detailed classification of e-commerce platforms under the Law on E-Commerce 2025, reflects a significant step forward in refining the legal framework in line with the practical development of the digital economy. These provisions not only enable regulatory authorities to clearly determine the scope of regulation and the responsibilities applicable to each type of platform, but also enhance transparency and consistency in the interpretation and application of the law. At the same time, they serve as an important basis for enterprises and individuals operating in the electronic environment to accurately identify their business models, thereby ensuring proactive compliance, mitigating legal risks, and effectively leveraging opportunities in the rapidly evolving e-commerce landscape.

2. Identity verification (electronic identification and authentication) of individuals prior to engaging in e-commerce activities

Electronic identity verification prior to engaging in e-commerce activities is one of the notable requirements under the Law on E-Commerce 2025, reflecting a clear trend toward strengthened regulatory oversight of business activities in the digital environment. Accordingly, from 1 July 2026, the following subjects are required to complete identity verification before conducting e-commerce activities:

• Sellers on intermediary e-commerce platforms and social networks with e-commerce functions. (Article 21) 
• Livestream sellers: Individuals who directly appear on e-commerce platforms to conduct livestream sales. (Articles 22 and 24) 
• Affiliate marketers: Individuals who promote goods or services on digital platforms through referral links, referral codes, or similar methods generated by organizations or individuals providing affiliate marketing services in e-commerce. (Articles 25 and 26) 

Identity verification must be carried out in accordance with the Law on E-Commerce and relevant laws on electronic identification and authentication. In the case of foreign individuals, identity verification shall be conducted based on valid legal documents. Through this identity verification mechanism, regulatory authorities are better equipped to trace, monitor, and handle violations, particularly in the context of rapidly growing activities such as livestream selling and affiliate marketing, which inherently carry various risks. This measure enhances transparency and accountability among participants in e-commerce, while also protecting consumers’ rights and limiting fraudulent and deceptive practices in the digital environment. It also represents a significant step toward establishing a safe, transparent, and fair e-commerce business environment, in line with modern regulatory trends in the digital economy.

3. Enhanced regulation of foreign e-commerce platforms operating in Vietnam

A foreign-invested e-commerce platform operating in Vietnam refers to an e-commerce platform owned by a foreign organization that is lawfully established under foreign laws and satisfies at least one of the following criteria:

• Providing an option for Vietnamese as a display language;
• Using the Vietnamese national domain name “.vn”;
• Reaching a transaction threshold with buyers in Vietnam, excluding direct e-commerce platforms without online ordering functionality.

In addition, compared to domestic e-commerce platforms, the Law on E-Commerce 2025 imposes further obligations on foreign e-commerce platforms operating in Vietnam as follows:

• For foreign direct e-commerce platforms with online ordering functionality: The platform owner must designate a legal entity in Vietnam under an authorization arrangement before the platform provides a Vietnamese language display option, uses the “.vn” domain name, or after reaching the transaction threshold with buyers in Vietnam, unless otherwise provided by law.
• For intermediary e-commerce platforms without online ordering functionality and social networks with e-commerce functions without online ordering functionality: The platform owner must appoint an authorized representative in Vietnam before the platform provides a Vietnamese language display option or uses the “.vn” domain name, and must satisfy conditions relating to the management and operation of the platform.
• For intermediary e-commerce platforms with online ordering functionality, social networks with e-commerce functions with online ordering functionality, and integrated e-commerce platforms: The platform owner must establish a legal entity in Vietnam before the platform provides a Vietnamese language display option, uses the “.vn” domain name, or after reaching the transaction threshold with buyers in Vietnam, unless otherwise provided by law.

Where an international treaty to which the Socialist Republic of Vietnam is a member contains commitments prohibiting the requirement to establish a legal entity, the owners of intermediary e-commerce platforms with online ordering functionality, social networks with e-commerce functions with online ordering functionality, and integrated e-commerce platforms shall comply with the following:

• Designate a legal entity in Vietnam under an authorization arrangement;
• Maintain a deposit at a commercial bank in Vietnam or a branch of a foreign bank in Vietnam to ensure compensation for consumers and the fulfillment of financial obligations to the State;
• Satisfy conditions relating to the management and operation of the e-commerce platform.

These provisions aim to curb the practice of “cross-border business operations that evade accountability,” while establishing a more level playing field between domestic and foreign enterprises in the e-commerce sector.

4. Sanctions for violations of laws on e-commerce

With respect to sanctions applicable to organizations and individuals participating in e-commerce activities who commit violations of the Law on E-Commerce, depending on the nature, severity, and consequences of such violations, the following measures may be imposed:

• Administrative sanctions in accordance with the laws on handling administrative violations;
• Technical and platform-based measures, including blocking access, suspending transaction functionalities of e-commerce platforms; removing infringing content; suspending or terminating violating accounts on e-commerce platforms; removal from the publicly announced list of e-commerce platforms that have completed notification or registration procedures; and removal from the list of licensed providers of e-contract authentication services in commerce;
• Compulsory remedial measures, including the restoration of lawful rights and interests of affected parties;
• Compensation for damages caused to parties participating in e-commerce activities in accordance with applicable laws;
• Criminal liability, where the e-commerce activities show signs of a criminal offense, in accordance with relevant laws.

The Law on E-Commerce 2025 is one of the key newly enacted statutes, expected to have a profound impact on the business landscape in the current digital era. The above are four key points that organizations and individuals should pay particular attention to when engaging in e-commerce activities (effective from 1 July 2026). Understanding and complying with these regulations not only helps mitigate legal risks but also establishes a solid foundation for sustainable business development, in line with increasingly stringent regulatory trends in the e-commerce sector.

Phong & Partners provides comprehensive legal advisory services in the field of e-commerce, assisting clients in ensuring regulatory compliance, minimizing legal risks, and optimizing business performance. If you are planning to engage in e-commerce activities but have concerns regarding the relevant legal requirements, please do not hesitate to contact Phong & Partners at Tel: 02363.822.678 or Hotline: 0905.503.678 for timely and accurate assistance.

For more information on our legal services, please visit: www.phong-partners.com