Avoiding Overlap with the Law on Investment

Article 39 of the draft requires consultation with the Ministry of Public Security for appraisal of foreign investors when applying for or adjusting business licenses in the e-commerce sector.

According to VCCI, this provision is not consistent with the 2025 Law on Investment and its guiding documents. In practice, foreign investors already undergo a rigorous appraisal process at the market entry stage, which includes national security and defense considerations when necessary. Adding another separate appraisal step in the draft would not only create overlap but also generate unnecessary administrative procedures.

The draft also fails to clearly define the criteria, scope, and procedures of this appraisal, potentially leading to inconsistent interpretation and application between authorities and businesses. Therefore, VCCI proposes removing this separate security appraisal mechanism and unifying the process under a single focal point in accordance with general investment regulations.

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Regarding the responsibilities of intermediary e-commerce platforms, VCCI noted that some provisions lack flexibility and do not reflect practical realities.

Specifically, the requirement to both integrate the national electronic identification system and require sellers to provide information (Article 19) may increase costs, technical risks, and implementation time. Businesses therefore propose being allowed to choose one of the two options instead of having to comply with both simultaneously.

In addition, the requirement that all complaint-handling decisions must involve human supervision is considered unreasonable. As many platforms have adopted artificial intelligence (AI) to optimize operations, mandating manual intervention in all cases could reduce efficiency and increase costs. VCCI recommends clarifying cases that genuinely require human involvement instead of applying a blanket requirement.

Proposals to Adjust Reporting and Data-sharing Obligations

Regarding reporting obligations for large digital platforms, the draft requires monthly reporting and handling of violations within 48 hours. According to VCCI, this would entail significant investment and operational costs, particularly for platforms where e-commerce activities represent only a small proportion of their business.

VCCI therefore proposes applying these obligations only to platforms with at least 3 million direct users to ensure proportionality and encourage business expansion.

Similarly, provisions on connecting, sharing, and synchronizing data with the e-commerce database are considered inconsistent with the Law on Data and may impose heavy costs and security risks. VCCI suggests requiring data provision only upon specific requests from competent authorities, based on the principle of voluntariness.

Other provisions have also been flagged by the business community as impractical. For example, the requirement to publicly disclose detailed security measures on platform homepages could expose sensitive technical information, increasing the risk of cyberattacks, while users mainly need to be informed about security commitments.

Additionally, the requirement to display excessive information on platform homepages is viewed as technically unfeasible. Businesses propose allowing such information to be presented via links or pop-up windows to ensure flexibility.

VCCI also recommends adjustments to other provisions, such as: requiring escrow contract certification only when platforms do not use licensed payment services; allowing reward point exchange mechanisms across platforms; and removing provisions that expand the obligation of intermediary payment organizations to provide information when such requirements are not stipulated by law.

Overall, the recommendations aim to ensure consistency within the legal system, reduce procedural duplication, and create more favorable conditions for businesses in implementing e-commerce activities.

VCCI expressed its expectation that the drafting authority will consider and incorporate these suggestions to refine the decree in a way that is transparent, feasible, and aligned with the rapid development of the e-commerce sector.