Proposed Identification for Live-Streaming Sales Representatives via VneID

On September 22nd, during the 49th session (3rd phase), the National Assembly’s Standing Committee (NASC) reviewed the draft E-Commerce Law. The proposal includes identifying livestream sellers via VneID to combat tax evasion.

Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan, representing the Government, stated that the draft law comprises 8 chapters and 50 articles.

He highlighted that Vietnam’s e-commerce sector is highly regarded by reputable market research organizations, ranking 3rd in Southeast Asia in scale by 2024 and 5th globally in growth rate in 2022.

Currently, e-commerce is primarily regulated by Decree No. 52/2013 and its amendment, Decree No. 85/2021. However, being at the decree level, these documents lack the authority to address critical cross-sector issues in e-commerce.

Rapid technological advancements and the emergence of diverse business models have exposed limitations in existing e-commerce policies. Issues such as counterfeit goods, prohibited items, intellectual property violations, and substandard products remain inadequately controlled.

Livestream selling, a rapidly growing trend, is currently regulated as a form of advertising combined with sales, lacking specific provisions for participants (account holders, livestreamers).

These gaps in regulation pose challenges in managing consumer protection, data privacy, and tax compliance.

The Deputy Minister cited cases where livestream sales generated billions of dong without tax collection, and instances like Miss Thuy Tien’s promotion of Kera candy, which exaggerated product benefits, impacting consumer decisions and health.

The amended E-Commerce Law aims to strengthen the legal framework for e-commerce activities.

It introduces comprehensive legal definitions for e-commerce models, from direct sales to multi-party platforms, enhancing platform responsibilities in product recalls, consumer protection, and transaction data storage for inspections.

The law extends obligations to social media platforms engaged in e-commerce, regulates integrated service platforms, and prevents algorithmic manipulation and monopolistic practices.

It mandates VNeID identification for domestic sellers and legal documentation for foreign sellers to ensure transparency and accurate identification in e-commerce transactions.

Additionally, it clarifies responsibilities for livestream sellers and affiliate marketers regarding identification, consumer protection, and data storage, while requiring foreign e-commerce platforms to establish or authorize legal entities in Vietnam.