However experts say only when the online business environment is organised and managed as a true economic space with planning, supervision and operation standards could it create long-term value and make substantive contributions to socio-economic development.

Rapid growth

According to the Ministry of Industry and Trade, the size of Viet Nam’s e-commerce market surpassed 25 billion USD in 2024, up 20% compared with 2023, and accounting for 9% of the country’s total retail sales.

Major e-commerce platforms such as Shopee, Lazada, Tiki and TikTok Shop played the main role in this growth, with the total value of transactions reaching 13.8 billion USD. The e-Conomy SEA report estimated that the size of Viet Nam’s digital economy reached 36 billion USD in 2024, with e-commerce playing a crucial role.

The trend of livestreaming shopping is growing rapidly, especially on Facebook and TikTok. Viet Nam’s e-commerce market currently has over 725,000 organisations and individuals trading on various platforms.

The online business space allows many individuals and organisations to easily participate at low cost, but it could be a fertile ground for trade fraud, tax evasion and violations of consumer rights if not managed properly.

During recent crackdowns, authorities have seized and destroyed tonnes of goods that violate regulations. The sale of counterfeit goods is prevalent on many platforms. In May, the market surveillance authority in Ha Noi detected and seized hundreds of bags and clothes faking famous brands sold through livestreaming.

In Ho Chi Minh City, the municipal market authority and police exposed a warehouse containing over 10,000 goods with unclear origin intended for use in livestreaming sessions.

Another problem is tax evasion. A recent incident involving a famous social media figure known as “Cun Bong”, who declared revenue of only 5 billion VND, despite the actual figure of 120 billion VND, sent shockwaves across the public.

In Vung Tau City, now a ward of Ho Chi Minh City, an individual selling goods through livestreaming on social media was found to generate revenue of 72 billion VND in less than a year but failing to register their business and pay tax. The incident was only found after the tax authority reviewed the digital payment database and compared it with information from e-commerce platforms.

Such incidents raise a big question: If control over e-commerce business activities is tightened, will the market retain its projected growth rate?

Strengthening control over e-commerce

The lack of quality control on e-commerce platforms and inadequate control of revenue streams are creating a class of sellers who quickly get rich by evading regulations online.

Meanwhile, many enterprises, which fully comply with tax regulations, invest in quality control, brand registration, good packaging and operation in line with the law, are facing difficulties due to their inability to compete in terms of price with shops that do not declare tax, sell goods with unclear origins or counterfeit goods.

This fact underlines the need for stricter control of business activities in the online space. However, control should come along with flexible support mechanisms to facilitate the switching of small household and individual businesses to more formal entities, thereby promoting an environment of harmonious development between the traditional business sector and new forms of business on digital platforms.

Currently, the Tax Department has implemented various measures to control e-commerce activities such as requiring platforms to provide identification information of sellers, including tax numbers, bank accounts and revenue.

The tax authority is also stepping up data connectivity with digital platforms and intermediate payment organisations to control revenue streams and determine tax obligations.

At the same time, a concentrated database on e-commerce activities is being formulated, integrating information from relevant agencies such as customs, banks and market surveillance to facilitate inspection.

Furthermore, the Ministry of Finance has recommended that the Government revise regulations to require cross-border platforms such as Facebook, TikTok and Google to take charge of declaring and paying tax on behalf of sellers who are not resident in Viet Nam.

The tax sector is also employing technologies such as artificial intelligence and big data to monitor the operation, track money flows and detect abnormal transactions. In addition, it is working with the Ministry of Public Security and Ministry of Science and Technology to detect and penalise violations such as tax evasion and the sale of counterfeit goods.