{"id":781,"date":"2026-04-18T08:00:00","date_gmt":"2026-04-17T23:00:00","guid":{"rendered":"https:\/\/india-marketing.jp\/?post_type=vietnam-news&p=781"},"modified":"2026-08-02T01:23:10","modified_gmt":"2026-08-01T16:23:10","slug":"vietnam-ecommerce-law-july-2026-vneid-algorithm-disclosure","status":"publish","type":"vietnam-news","link":"https:\/\/india-marketing.jp\/en\/vietnam-news\/vietnam-ecommerce-law-july-2026-vneid-algorithm-disclosure\/","title":{"rendered":"Vietnam's New E-Commerce Law Takes Effect July 1 \u2014 VNeID Seller Verification, Algorithm Disclosure, and 24-Hour Violation Removal Become Mandatory: How Will Operating Costs Change for TikTok Shop and Shopee?"},"content":{"rendered":"
\nThis article is based on what we could verify As of August 1, 2026<\/strong> This article is based on public materials and news reports from Vietnam. Vietnam's tax system, regulations, and administrative divisions change frequently, so information here may have been updated since publication. For actual business decisions, please confirm the latest details with the relevant government authorities or local experts as primary sources.\n<\/div>\n\n\n\n

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?<\/p>\n\n

The Core of the New E-Commerce Law \u2014 Six Policy Pillars<\/h2>\n\n

The law is built around the following six pillars.<\/p>\n\n

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  1. Clarifying the Classification and Obligations of E-Commerce Operators<\/strong>: Platforms are classified into four types \u2014 \"direct sales,\" \"intermediary,\" \"social media with e-commerce functions,\" and \"multi-service integrated\" \u2014 each carrying different responsibilities<\/li>\n
  2. Regulating Commerce on Multi-Service Platforms and Social Media<\/strong>: Legally defines, for the first time, social-commerce hybrids like TikTok Shop<\/li>\n
  3. Comprehensive Obligations for Foreign Platforms and Cross-Border Sellers<\/strong>: Requires establishing a legal entity in Vietnam or appointing a legal representative<\/li>\n
  4. Regulating Support Services Such as Logistics, Payments, and IT Infrastructure<\/strong><\/li>\n
  5. Strengthening the Legal Basis for Electronic Contracts and Authentication<\/strong><\/li>\n
  6. Promoting Green and Sustainable E-Commerce<\/strong><\/li>\n<\/ol>\n\n

    Five New Obligations Imposed on Platform Operators<\/h2>\n\n\n\n\n\n\n\n\n\n\n
    Obligation<\/th>\nDescription<\/th>\nApplies to<\/th>\n<\/tr>\n<\/thead>\n
    VNeID Seller Verification<\/td>\nDomestic sellers must verify their identity through Vietnam's national e-ID system, VNeID. Foreign sellers are also required to undergo identity verification<\/td>\nAll platforms<\/td>\n<\/tr>\n
    Automated Content Review<\/td>\nFrom notice of violation, within 24 hours<\/strong>, the relevant content must be removed or hidden<\/td>\nAll platforms<\/td>\n<\/tr>\n
    3-Year Data Retention<\/td>\nTransaction logs, product listings, and recorded live-stream footage<\/strong> must be retained for a minimum of 3 years<\/td>\nAll platforms<\/td>\n<\/tr>\n
    Algorithm Disclosure<\/td>\nMust disclose the design intent, logic, functional specifications, and behavioral simulations of algorithms when regulators investigate<\/td>\nLarge-scale platforms<\/td>\n<\/tr>\n
    Ban on Exclusive Dealing<\/td>\nProhibits forcing the use of specific logistics or payment services<\/td>\nAll platforms<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n

    Impact on TikTok Shop and Shopee \u2014 Rising Costs Loom for the E-Commerce Duopoly<\/h2>\n\n

    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.<\/p>\n\n

    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.<\/p>\n\n

    Tighter Regulation of Live Commerce<\/strong> 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<\/a>, the compliance cost of influencer marketing will rise substantially.<\/p>\n\n

    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.<\/p>\n\n

    Local Reactions \u2014 Voices From Industry Groups, Law Firms, and Consumers<\/h2>\n\n

    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).<\/p>\n\n

    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.<\/p>\n\n

    On the consumer side, TikTok Shop's fee hike to as much as 14.5% in April<\/a> 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.<\/p>\n\n\n\n

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