Vietnam's New E-Commerce Law Takes Effect July 1 — VNeID Seller Verification, Algorithm Disclosure, and 24-Hour Violation Removal Become Mandatory: How Will Operating Costs Change for TikTok Shop and Shopee?

On July 1, 2026, Vietnam's first comprehensive Law on E-Commerce (Law No. 122/2025/QH15) takes effect. Passed by the National Assembly on December 10, 2025, the law consists of 41 articles across 7 chapters and regulates every aspect of digital transactions, from identity verification obligations for e-commerce operators to algorithm disclosure and real-time monitoring of live commerce. What changes will this bring to Vietnam's e-commerce market, estimated at USD 26-28 billion?

The Core of the New E-Commerce Law — Six Policy Pillars

The law is built around the following six pillars.

1. Clarifying the Classification and Obligations of E-Commerce Operators: Platforms are classified into four types — "direct sales," "intermediary," "social media with e-commerce functions," and "multi-service integrated" — each carrying different responsibilities
2. Regulating Commerce on Multi-Service Platforms and Social Media: Legally defines, for the first time, social-commerce hybrids like TikTok Shop
3. Comprehensive Obligations for Foreign Platforms and Cross-Border Sellers: Requires establishing a legal entity in Vietnam or appointing a legal representative
4. Regulating Support Services Such as Logistics, Payments, and IT Infrastructure
5. Strengthening the Legal Basis for Electronic Contracts and Authentication
6. Promoting Green and Sustainable E-Commerce

Five New Obligations Imposed on Platform Operators

Impact on TikTok Shop and Shopee — Rising Costs Loom for the E-Commerce Duopoly

Vietnam's e-commerce market is effectively a duopoly. As of Q1 2026, Shopee holds 40-45% of GMV and TikTok Shop holds 25-30%, with the two together controlling about 97% of the market.

TikTok Shop's growth rate has been overwhelming, recording 69% sales growth year on year, with the number of active sellers up 96% to 267 thousand (Shopee's fell 32% to 210 thousand). However, the new e-commerce law could put the brakes on this rapid growth.

Tighter Regulation of Live Commerce is the prime example. About half of Vietnam's online shoppers have purchased through a livestream. The new law legally treats KOLs (key opinion leaders) and KOCs (key opinion consumers) on the same footing as "sellers," and requires platforms to monitor livestreams in real time. Combined with the amended Advertising Law, which took effect in January 2026, the compliance cost of influencer marketing will rise substantially.

Shopee is not safe either. The company handles more than 50% of orders through its own logistics network, SPX Express, but the new law's "ban on exclusive dealing" provision could restrict forcing sellers to use its in-house logistics. The cost of retaining 3 years of data from Shopee Live's 450 million monthly viewing hours is also not negligible.

Local Reactions — Voices From Industry Groups, Law Firms, and Consumers

The Vietnam E-Commerce Association (VECOM) said that "legal frameworks are essential for the healthy growth of e-commerce," while expressing concern over the short preparation period before enforcement (about 7 months from passage to taking effect).

Baker McKenzie's Vietnam office noted that "the biggest change for foreign platforms is that, while establishing a legal entity is not required, appointing a legal representative is now mandatory." This ensures a point of contact within Vietnam for compliance, tax, and consumer protection matters.

On the consumer side, TikTok Shop's fee hike to as much as 14.5% in April has already spread concern about further cost pass-through once the new law takes effect. On social media, comments such as "we'd welcome fewer counterfeits from the regulation, but if prices go up it defeats the purpose" stand out.

Impact on Japanese Companies — Higher Barriers to Cross-Border E-Commerce Entry, but Also a Weapon for Building Trust

The new e-commerce law has two opposing effects on Japanese companies entering Vietnam's e-commerce market.

Higher Barriers to Entry: The obligation to appoint a legal representative adds extra cost to cross-border e-commerce listings from Japan. Large foreign capital investments may also face national security review, making the choice of entry format more important than ever.

An Opportunity to Differentiate on Trust: Improved seller traceability through VNeID verification helps eliminate counterfeits and knockoffs. For Japanese brands known for quality control, it becomes easier to prove authenticity, making it easier to differentiate on quality rather than price competitiveness.

Vietnam's e-commerce market has continued to grow 34.4% year on year, and it seems unlikely that tighter regulation will halt that growth. If anything, the formation of a "more transparent market" through this legal framework is likely to put Japanese companies, which are accustomed to compliance, at a relative advantage.

Ripple Effects on the Industry — In Step With ASEAN-Wide Digital Regulation Trends

Vietnam's new e-commerce law should be read in the context of tightening digital regulation across ASEAN. Indonesia banned TikTok Shop from operating as a standalone entity in 2023 (it later merged with Tokopedia), and Thailand has also strengthened platform taxation.

What makes Vietnam distinctive is that it has pioneered algorithm disclosure requirements in Asia. It imposes transparency requirements comparable to the EU's Digital Services Act (DSA), and Malaysia and the Philippines may follow suit.

The implication for Japanese companies is clear. The cost of complying with each ASEAN country's individual regulations will keep rising. Whether to build a unified regional compliance framework or a country-by-country network of legal representatives is a theme that should be built into strategy planning for the second half of 2026.

Practical Information Table — Items Japanese Companies Should Check Under the New E-Commerce Law

Summary — 75 Days to Enforcement: Three Steps Japanese Companies Should Take

About 75 days remain until Vietnam's new e-commerce law takes effect. The actions Japanese companies should take are clear.

1. Begin Selecting a Legal Representative: It is worth completing contact with law firms and consultancies in Vietnam before July. Firms with e-commerce law expertise, such as Baker McKenzie and Viet An Law, have already published reports, so the material for comparison is readily available.
2. Compliance Check for Live Commerce Operations: Review contracts with KOLs and KOCs, and add clauses reflecting their obligations as "sellers."Dual regulation with the amended Advertising Law needs to be reflected in updated internal guidelines.
3. Establishing a Data Retention Policy: Draw up a storage plan to retain sales data from Shopee and TikTok Shop, in-house e-commerce transaction logs, and live-stream recordings for 3 years. Companies that rely heavily on live commerce in particular should estimate the volume and storage cost of recorded footage in advance.