Illustrative image. (Source: VNA)

According to insiders, proactively monitoring market trends, adhering to consumer preferences, and overcoming challenges through digital technology adoption is essential for business development.

Online shopping contributes to increasing sales and reducing intermediary costs, preventing financial loses for businesses in the Vietnam market. However, taking advantage of loopholes, many individuals have impersonated trading platforms, and large brands, which apply policies that do not allow customers to inspect goods upon online delivery, causing losses to consumers.

Experts said stronger sanctions are necessary to punish those responsible for e-commerce frauds.

According to statistics from the Ministry of Industry and Trade (MoIT), e-commerce continues to be one of the bright spots in Vietnam's digital economy development, with revenue reaching 20.5 billion USD in 2023, up 25% year-on-year.

A comprehensive report on the online retail market in 2023 and the forecast for 2024 by the e-commerce data platform Metric also show that revenue from business-to-consumer (B2C) e-commerce reached nearly 500 trillion VND (over 19.64 billion USD) in 2023, and is predicted to hit around 650 trillion VND in 2024.

Sales revenue on online platforms is projected to reach over 310 trillion VND in 2024, 35% higher than that reported in the previous year.

Sales through live-streaming can be 10 times more effective than traditional e-commerce, experts said, but noting that along with the benefits and profits brought by e-commerce, there are also downsides.

Many bad actors have exploited consumer trust and policy loopholes to sell low-quality products, counterfeiting the trademarks of well-known brands that are protected in Vietnam and worldwide, they said.

According to Tran Huu Linh, Director General of the MoIT’s Vietnam Directorate of Market Surveillance, said his agency frequently receives reports from branded companies about counterfeit products on e-commerce platforms like Lazada, Shopee, and recently TikTok, and social networks such as Facebook and Zalo.

He also provided a comparison that in 2020, retail sales on the Internet in Vietnam reached 13 billion USD, but by 2022 this figure surged to 35 billion USD.

Vietnam has the highest online shopping population ratio in Southeast Asia, with 49.3 million or 41% of its population shopping online, he added.

To prevent e-commerce fraud, it is necessary to have resources, especially tools, methods, and appropriate sanctions. Linh stressed.

In addition to efforts by law enforcement agencies, individuals and organisations need to enhance awareness of legal compliance in preventing counterfeit goods, smuggling, and trade fraud, especially through e-commerce platforms, he said.