The Ministry of Industry and Trade (MoIT) has emphasized the urgent need for prompt identification of sellers on e-commerce platforms to address growing concerns about counterfeit goods, substandard products, and sophisticated tax evasion.

Identifying sellers will help reduce fraud and facilitate tax collection, contributing to transparent and fair e-commerce in Vietnam and the development of a sustainable digital economy, the ministry said.

Following Government Resolution No. 09 of January 10, the ministry is tasked with studying amendments to the regulations on the identification of sellers on e-commerce platforms through VNeID.

Local consumers in Vietnam are increasingly turning to e-commerce sites to make their purchases. Photo: PVcomBank

According to Hoang Ninh, Deputy Director of MoIT's Vietnam E-Commerce and Digital Economy Agency, seller identification effectively protects consumer rights by enabling traceability and reducing the risk of fraud and counterfeit sales. It gives buyers more confidence in their purchases and reduces the likelihood of encountering substandard products.

E-commerce vendor identification enables regulators to share information, improve coordination in monitoring e-commerce activities, and address non-compliance in a timely and transparent manner.
It strengthens tax management by accurately determining e-commerce revenues and preventing budget losses.

"This is one of several measures aimed at addressing the challenges faced by regulators in managing business activities on e-commerce platforms," the ministry said.

Fraud risks increase due to lack of transparency

Nearly 725,000 organizations and individuals are active on e-commerce platforms. Photo: Quynh Lien/The Hanoi Times

Moreover, regulators find it difficult to track down warehouses or sellers in the event of non-compliance. Poor enforcement on the verification and storage of seller information complicates investigations in e-commerce transactions.

Without an electronic identification mechanism and comprehensive supervision, e-commerce platforms can be misused for fraudulent activities or tax evasion, troubling regulators and tax authorities in monitoring sellers' transactions and activities.

Meanwhile, local consumers fail to verify the reliability of sellers on e-commerce platforms when seller information is unclear and opaque. This lack of transparency affects consumer rights and diminishes trust in e-commerce platforms, according to the ministry.

Recent data shows an increase in reported violations related to counterfeit goods, imitation products, and unfair competition on e-commerce platforms. Vietnam's E-Commerce and Digital Economy Agency found that in 2024 alone, it dealt with 165 complaints, including serious violations such as failure to register websites/apps, offering substandard products, and impersonating other businesses to defraud customers.

Thong Nhat Hanoi JSC is grappling with product counterfeiting, where goods of unclear origin mimic their designs and are sold at one-fifth of the manufacturer's price. "This weakens domestic brands with inferior products," said Phi Trong Thanh, Deputy General Director of Thong Nhat Hanoi JSC. The company produces more than 30,000 bicycles a month for the domestic market.

Other businesses face similar challenges. Vietnam's E-Commerce and Digital Economy Agency reported that in 2024, cases of counterfeit goods, imitation products, and unfair online competition increased 2.4 times, resulting in fines that nearly tripled compared to 2023.

Experts predict that the control of counterfeit, prohibited, and IPR-infringing products will become increasingly complex. Many counterfeit products sold online have been reported, with sellers quickly deleting accounts and changing identities to avoid detection. This contributes to the loss of e-commerce tax revenues and undermines consumer rights.

Hoang Ninh of the Vietnam E-Commerce and Digital Economy Agency emphasized that with the rapid growth of e-commerce and the government's call for tighter regulation, MoIT will continue to refine the legal framework, strengthen inspections, and promote inter-agency cooperation to protect consumer rights and foster sustainable e-commerce development in Vietnam.

To combat counterfeiting and ensure consumer safety, the ministry will strengthen data sharing among government agencies and cooperate with the National Anti-Counterfeiting Steering Committee and the Ministry of Public Security.

These efforts are aimed at gathering information and preventing the circulation of fake, substandard products. In addition, the ministry will intensify communication efforts to warn consumers about fraudulent activities and scams in e-commerce to ensure a safer online shopping environment.