Vietnam’s new e-commerce law expected to curb online trade fraud

Between 2020 and 2025, authorities nationwide detected and handled about 120,000 – 190,000 cases of smuggling, trade fraud, and counterfeit goods each year, with trade fraud accounting for the largest share of around 79-88 percent.

Tightening verification requirements and promoting technology application is essential to curb increasing sophisticated online trade fraud as Việt Nam is looking to restore market order and better protect consumers under the new Law on E-Commerce.

According to Hoàng Quang Phòng, Deputy President of the Việt Nam Chamber of Commerce and Industry (VCCI), e-commerce has become one of the key drivers of economic growth amid rapid digital transformation, but loopholes and fraudulent practices are posing growing risks to consumers and businesses.

The e-commerce market registers impressive growth of 18 per cent to 25 per cent per year. In the first nine months of 2025 alone, domestic e-commerce revenue reached VNĐ305.9 trillion (US$11.6 billion), up 34.35 per cent year-on-year. This strong momentum has helped position Việt Nam as one of the most promising e-commerce markets in ASEAN.

However, Phòng warned that e-commerce had also brought significant risks with some traders exploiting regulatory gaps to sell counterfeit, substandard or products of unclear origin for short-term profiteering, affecting both law-abiding businesses and causing mistrust among consumers.

“Completing the legal framework, strengthening enforcement and enhancing the accountability of all market participants are pressing,” Phòng said.

Smuggling, trade fraud and counterfeit goods not only caused economic losses but also posed long-term risks to consumer health, damaged the reputation of legitimate businesses and undermined social order and the investment climate, Trần Đức Đông, Deputy Chief of the Office of the National Steering Committee 389 for anti-smuggling and anti-fraud said.

He cited statistics that between 2020 and 2025, authorities nationwide detected and handled about 120,000 – 190,000 cases of smuggling, trade fraud and counterfeit goods each year with trade fraud accounting for the largest share of around 79-88 per cent.

In the third quarter of 2025 alone, more than 31,000 violation cases were handled nationwide, collecting over VNĐ3.6 trillion to the State budget and initiating criminal proceedings in 462 cases involving 915 suspects.

A worrying trend, Đông said, was the rapid shift of illegal activities to the online space, adding that from production, trading and advertising to transactions, logistics and consumption, violations are now largely conducted through e-commerce platforms, social networks and postal and delivery services.

It was necessary to raise comprehensive, decisive and long-term solutions, including further institutional reforms, reviewing and amending regulatory gaps, strengthening inter-agency and inter-provincial coordination, and accelerating the application of science and technology through shared and interconnected databases to improve the effectiveness of efforts to combat smuggling, trade fraud and counterfeits, especially online, Đông said.

He stressed that stepping up public communication to raise awareness among consumers and the business community should be given priority.

According to Lê Thị Hà, Head of the E-commerce Operation Management Department under the Ministry of Industry and Trade’s E-commerce and Digital Economy Agency, more than 47,000 online listings linked to counterfeit goods, copycat products, intellectual property infringements or other suspected violations were taken down in 2025, compared to the records of 10,000 listings in previous years. Besides, 17,000 online stores were locked or removed from e-commerce platforms.

The Law on E-commerce, which will come into effect on July 1, 2026 with broader scope, was expected to provide a more comprehensive legal framework for e-commerce development, Hà said.

Notably, the new law has introduced tighter obligations for sellers, live streamers and platform operators to improve transparency.

Hà said: “The Law on E-Commerce is expected to become a key tool to restore market order, curb trade fraud and promote the sustainable development of Việt Nam’s e-commerce sector in the coming period.”

Nguyễn Thị Hương, head of the Legal Department at the Việt Nam Association of Multi-Level Marketing, said e-commerce platforms should apply stricter listing requirements to prevent frauds.

Viet Nam News – January 7, 2026