Vietnam Tightens E-commerce Rules: Why Transparency is Now Mandatory for Businesses

E-commerce in Vietnam is evolving rapidly, but so are government regulations. New compliance measures now require Vietnamese merchants to ensure full transparency, not only during operations but even after shutting down their businesses. Failure to comply will result in website and app deactivation, potential tax investigations, and stricter legal consequences.

The regulatory shift signals that Vietnamese e-commerce businesses must be proactive in adapting to these changes to avoid penalties and legal risks.

Vietnamese Merchants Can No Longer Operate in the Shadows

The Ministry of Industry and Trade, in collaboration with the General Department of Taxation, is conducting a nationwide review of e-commerce activities. Recently, 120 websites and 44 applications were flagged for investigation, marking a significant step toward stronger regulatory enforcement.

Key government directives:

• Even if an e-commerce platform has ceased operations, merchants must formally declare its status to regulatory authorities.
• Failure to respond within 30 days will lead to website/app registration termination, and businesses may face further tax audits.
• Every e-commerce platform, whether operational or discontinued, must comply with transparency regulations—no exceptions.

This means that merchants can no longer disappear from the market without fulfilling their legal obligations. Transparency is now a fundamental requirement, not an option.

Stricter Regulations Demand Proactive Compliance from Vietnamese Merchants

The surge in e-commerce has increased tax risks, fraudulent transactions, and regulatory gaps. In response, the government is tightening control to ensure a fair and transparent digital marketplace.

Key regulatory changes include:

• Enhanced monitoring of all e-commerce platforms, including inactive businesses.
• Data-sharing between the Ministry of Industry and Trade and the General Department of Taxation, ensuring tax compliance and accurate business status reporting.
• Harsher penalties for merchants who fail to declare operational status, even after discontinuing services.

Vietnam is shifting from passive oversight to active enforcement, requiring all merchants to comply with stricter laws and maintain transparency in business operations.

How Can Vietnamese Merchants Prepare for Regulatory Changes?

- Declare Business Status Transparently

• Ensure that websites and apps remain properly registered and compliant.
• Officially report business closure to avoid regulatory violations.

- Fulfill All Tax Obligations

• Even if the business is inactive, merchants must ensure tax declarations are completed.
• Cooperate with tax authorities to reconcile records and avoid financial penalties.

- Update Business Registration Details

• Verify that e-commerce licenses and registrations are up to date.
• Promptly notify authorities of any changes in ownership or business structure.

- Prepare for Advanced Compliance Monitoring

• The government is utilizing Big Data and AI to track e-commerce transactions. Merchants must maintain transparent financial records to avoid compliance risks.

Transparency is Now a Requirement, Not a Choice

With stricter regulations in place, Vietnamese merchants must transition from reactive compliance to proactive transparency. Compliance is no longer just about avoiding penalties—it is about building a trustworthy business in Vietnam’s competitive e-commerce market.

Businesses that adapt to these legal changes will have a competitive edge, while those that fail to comply will face increasing difficulties. Vietnam’s e-commerce sector is evolving, and only transparent, law-abiding businesses will thrive in the long run.