Vietnam is accelerating efforts to expand e-commerce beyond major cities, using a new two-tier local government model, partnerships with digital platforms and a stronger legal framework to help rural and mountainous communities access online markets and reduce regional gaps.

Binh Lu Commune in the northern province of Lai Chau has emerged as an early test case for how e-commerce can help remote localities overcome structural barriers, as local authorities partner with TikTok Shop to build a community-based digital commerce ecosystem rooted in local strengths.

The provincial Department of Industry and Trade, Binh Lu Commune authorities and TikTok Shop recently launched the “Binh Lu Rising” campaign as part of a broader plan to develop the commune into a model e-commerce locality.

The initiative aims to turn digital platforms into practical tools for local producers, moving e-commerce beyond urban markets and into everyday rural economic activity.

The “Binh Lu Rising” campaign also marks the rollout of the “Localities Rising” model, part of TikTok Shop’s broader “Vietnamese Goods Rising” initiative.

The program aligns with the Ministry of Industry and Trade’s National Master Plan on E-commerce Development for 2026-2030 and targets adoption across more than 3,000 communes and wards.

After less than one month, the “Localities Rising” pilot in Binh Lu has posted early gains. The commune has built an e-commerce network of 20 local businesses and household traders actively selling online.

Binh Lu currently has 12 OCOP-certified products, eight of which are now available on TikTok Shop. Although most sellers are new to the platform, five businesses already process a steady 20-30 orders per day.

Nguyen Ba Kien, Vice Chairman of the Binh Lu Commune People’s Council, said the 2026 Lunar New Year shopping season marks a turning point.

Traditional glass noodles made from dong and sam potatoes, once known mainly within the commune, becomes top-selling products on TikTok Shop, he said.

The commune now plans to establish a traditional glass noodle craft village covering more than seven hectares, positioning the product as a digital-era brand linked to Binh Lu.

Under the plan, 70%-90% of glass noodle producers will relocate to a centralized production zone to standardize processes, strengthen quality control and combine production with tourism experiences.

From a provincial perspective, Vuong The Man, Director of the Lai Chau Department of Industry and Trade, said e-commerce offers a viable growth path for mountainous areas.

“In the past, many local products were made well but sold cheaply because few people knew them. Social commerce platforms now allow unknown brands to reach wider markets,” he said at an e-commerce forum in Hanoi earlier this week.

Tran Thi Tan, Director of Corporate Social Responsibility at TikTok Shop, said the platform supports local e-commerce models that focus on internal capacity building and long-term sustainability.

Local governments play the central role in strategy design, coordination and resource mobilization, she said.

TikTok Shop provides advisory support and connects its ecosystem, including logistics partners, content creators, policy incentives for Vietnamese goods and service providers, to support local growth, Tan added.

New rules, new momentum for e-commerce expansion

At the national level, policymakers acknowledge that uneven regional development remains a major challenge for e-commerce growth.

Hoang Ninh, Deputy Director of the Authority, said Vietnam’s e-commerce sector has maintained average annual growth of about 25%.

By 2025, about 60% of the population had participated in online shopping, pushing retail e-commerce sales to an estimated $31 billion, or about 11% of total retail sales. However, the sector has entered a new phase that prioritizes quality, sustainability and governance.

Digital transformation continues to reshape business models, with e-commerce now a strategic distribution channel, Ninh said.

Rapid growth has also raised concerns over transparency, consumer protection, fraud control and platform responsibility, reinforcing the need for a stronger legal framework, he said.

The gap between urban centers like Hanoi and Ho Chi Minh City and many mountainous and border provinces remains significant due to limits in digital infrastructure, logistics, human resources and enterprise readiness.

To address these gaps, the Authority of E-commerce and Digital Economy under the Ministry of Industry and Trade is drafting a master plan to apply e-commerce in mountainous and border areas for 2027-2030, guided by the principle that no locality is left behind.

Tran Bich Ngoc from the Authority’s Policy Division said regional disparities also present opportunities for deeper integration into e-commerce value chains.

“When e-commerce forms part of a long-term strategy covering infrastructure, logistics, skills and market access, localities can attract investment and build new growth drivers,” she said.

The E-commerce Law, effective this July, sets clearer obligations for platforms, sellers and livestream hosts, including stricter information transparency, three-year data retention and tighter livestream controls.

The law also requires social networks engaged in commerce to separate personal and business accounts and mandates that foreign platforms establish a legal presence or authorized representative in Vietnam.

Against this backdrop, Binh Lu’s experience shows how grassroots e-commerce models, combined with policy support and platform cooperation, can help local products move from village markets to national and global audiences, supporting more balanced digital economic growth.