SOME PROVISIONS FOR ESTABLISHING AN E-COMMERCE WEBSITE IN VIETNAM FOR FOREIGN TRADERS

by Admin

27/04/2023

Documentation & Knowledge

SOME PROVISIONS FOR ESTABLISHING AN E-COMMERCE WEBSITE IN VIETNAM FOR FOREIGN TRADERS

1. Overview of e-commerce website

1.1 Concept of e-commerce website

E-commerce websites are divided into two categories, sales e-commerce websites and supply e-commerce website services, in accordance with Article 25 of Decree 52/2013/ND-CP, as amended by Decree 85/2021/ND-CP. Accordingly:

  • Sales e-commerce website: is an e-commerce website developed by traders, organizations or individuals by themselves to serve their commercial promotion, sales or service provision.
  • E-commerce service provision website: is an e-commerce website developed by traders or organizations to provide an environment for other traders, organizations or individuals to conduct their commercial activities.
  • The e-commerce service provision website is of the following types:
  • E-commerce trading floor;
  • Online auction website;
  • Online promotion website;
  • Other types of website as stipulated by the Ministry of Industry and Trade.

 

1.2 Advantages of setting up a commercial website

  • Cost saving: Saving money is the primary incentive for many merchants to operate an e-commerce website. Due to the fact that, when paired with some online marketing techniques, there is no need to invest a significant sum of money on renting space, hiring, and training employees... and yet receive substantial profits.
  • Increase interaction with customers: When customers visit an e-commerce website, they will easily update prices, product information and services.
  • Enhancing competition with competitors: The sales market for technology is becoming more and more competitive, but if you know how to take advantage of this chance to own an intuitive e-commerce website, you will be able to draw in more clients. 
  • Brand promotion: Everyone in the family uses Wifi or Internet connection technology in the digital age, making it incredibly practical for brand promotion both domestically and abroad. From there, an e-commerce website's layout will make it simpler to reach potential customers more quickly and efficiently. 

 

2. Conditions for setting up e-commerce website in Vietnam

According to regulations, e-commerce websites are divided into 2 types: e-commerce websites selling goods and websites providing e-commerce services. Therefore, for each type of website, there will be different setting conditions. As follows:

2.1. Conditions for setting up a sales e-commerce website

According to Clause 1 of Article 10 of Decree 08/2018/ND-CP and Article 52 of Decree 52/2013/ND-CP, subjects must fulfill the following requirements in order to establish a sales e-commerce website:

  • Having relevant functions and tasks, for traders and organizations, or having been granted personal tax identification numbers, for individuals.
  • Having notified the Ministry of Industry and Trade of the set-up of sales e-commerce websites under Article 53 of this Decree. 

 

2.2. Conditions for setting up a website providing e-commerce services

According to Article 54 of Decree 52/2013/ND-CP amending Clause 2, Article 10, Article 11 of Decree 08/2018/ND-CP and Clause 19, Article 1 of Decree 85/2021/ND-CP to set up a website providing e-commerce services, subjects must meet the following conditions:

  • Having relevant business lines or functions and tasks.
  • Having a service provision plan clearly stating the following: (1) Model of organization of operations, including service provision, promotion and marketing both online and offline; logistics activities for goods; (2) Rights and responsibilities of the trader or organization providing e-commerce services and service users.
  • Having registered for setting up e-commerce service provision websites and having their registrations certified by the Ministry of Industry and Trade under Articles 55 and 58 of this Decree.

In addition, for foreign traders and organizations providing e-commerce services in Vietnam, Article 67a of Decree 85/2021/ND-CP stipulates additional conditions that they must be traders or organizations operating in one of the following forms:

  • An e-commerce website set up under Vietnam’s domain name;
  • An e-commerce website displayed in Vietnamese language;
  • An e-commerce website that has more than 100.000 transactions originated in Vietnam within a year

3. Procedures for notifying the establishment of an e-commerce website in Vietnam

3.1 Procedures for notifying the establishment of an e-commerce website for sales in Vietnam

 

According to the provisions of Clause 9 Article 1 of Decree 85/2021/ND-CP, Websites established by their owners to sell their own goods with the function of online order will have to carry out notification procedures with the Department of Planning and Investment. E-commerce. Traders, organizations and individuals shall notify the Ministry of Industry and Trade of the establishment of an e-commerce website to sell goods through the e-commerce management portal before officially selling goods, provide services to users.

Accordingly, the information to be notified includes: The domain name of the e-commerce website; Types of goods and services introduced on the website; The registered name of the trader, organization or the name of the individual owning the website; Address of the head office of the trader, organization or permanent address of the individual; Number, date of issue and place of issue of the business registration certificate of the trader, or number, date of issue and establishment decision-granting unit of the organization; or personal tax identification number of the individual; Name, title, identity card number, phone number and email address of the trader's representative, the person responsible for the e-commerce website; Other information as prescribed by the Ministry of Industry and Trade.

Traders, organizations and individuals shall make announcements at the e-commerce management portal: online.gov.vn. The steps are as follows:

Step 1: The person who made the notification to register for an account, includes the following information:

  • The website owner’s name;
  • Business registration No. of traders or Establishment decision No. of organizations, or personnel tax codes of individuals;
  • Business lines;
  • Addresses of traders and organizations' head offices or permanent addresses of individuals;
  • Contact information

Step 2: The person making the notification waits for confirmation of successful account registration within 3 working days. If the information is complete, the trader, organization or individual is granted an account to log in and go through step 3;

Step 3: The person making the announcement log in and perform the notification function;

Step 4: The Ministry of Industry and Trade responds via email within 3 working days. Respond to one of the following:

  • Confirmations that the declared information is adequate and eligible;
  • Notification that the declared information is inadequate or invalid; In this case, traders, organizations and individuals should return to Step 3 for declaration again or provide additional information as requested.

If there is no response, the notification dossier will be terminated and the notice shall be re-notified from step 3. Within 10 working days, the person making the notification shall be responsible for amending or supplementing information when the declared information is incomplete or invalid. 

Result: The Ministry of Industry and Trade will send traders, organizations and individuals a piece of code to attach to the sales e-commerce website and display it in the form of an icon.

  • Fees: Free

 

3.2. Procedures for notifying the establishment of a website providing e-commerce services in Vietnam

According to Article 55 of Decree 52/2013/ND-CP, foreign traders and organizations that want to set up a website to provide e-commerce services in Vietnam need to follow the following order and procedures:

Step 1:    Traders and organizations registering domain names

Step 2: Traders and organizations setting up and completing websites with full structure, features and information according to service provision schemes, have operated at the registered domain name address.

Step 3: Traders and organizations prepare dossiers for registration of Website providing e-commerce services, including:

  • Registration form for e-commerce service websites (according to Form E-commerce-1 in the Appendix issued together with Circular 47/2014/TT-BCT).
  • An authenticated copy of Establishment Decision (for organizations), Certificate of Enterprise Registration or Investment Certificate (for traders).
  • Plans to provide services according to the provisions set out in Clause 3, Article 54 of the Decree No.52/2013/NĐ-CP.
  • Statute of management of e-commerce service websites comprises: (1) Subject matters as set out in Article 38 of the Decree No.52/2013/NĐ-CP; (2) Method and time limit for handling violations of the e-commerce service websites upon detection (3) Forms of service contract or cooperation agreement between traders and organizations that are in possession of e-commerce service websites and traders, organizations and individuals who take part in the buying and selling of goods and services on such websites; (4) General trading conditions applied to the buying and selling of goods and services on the website (if any)

Step 4: Traders and organizations accessing the E-commerce Management Portal register an account and log in to the system by providing the following information:

  • Name of the trader or organization;
  • Business registration No. of traders or Establishment decision No. of organizations;
  • Areas of business;
  • Addresses of traders and organizations' head offices;
  • Contact information.

Step 5: After being granted an account to log in to the system (within 03 working days from the date of account registration), traders and organizations shall carry out logging on, choose a feature “registration for e-commerce service websites, fill in the forms as instructed and enclose registration documents. 

Step 6: After receiving the notification confirming the complete and valid dossier (within 07 working days from the date of declaration and attaching the online dossier), the trader or organization sends it to the Ministry of Industry and Trade ( Department of E-commerce and Digital Economy) a complete set of registration documents (paper copy).

Result: Time limit for confirmation of registration: 05 working days since receipt of full and eligible registration documents (hard copy) sent directly or by post to the Ministry of Industry and Trade (Department of E-commerce and Information Technology) when the procedures of registration are completed according to the provisions set out in Clause 2, Article 15 hereof. In case the documents (hard copy) do not match the information declared online via the user account, the Ministry of Industry and Trade shall make a written notice to traders and organizations via registered emails for completion of the documents.

Above is an overview of the legal issues related to the procedures for establishing a sales website in Vietnam by foreign traders. Dai Ha Thanh Law Firm, with a team of professionally trained lawyers, legal advisors at home and abroad, is committed to providing professional legal services to our clients. If you need detailed advice, please contact us to receive professional and effective legal advice.