VCCI proposes reducing procedures for small e-commerce platforms

VCCI proposes reducing procedures for small e-commerce platforms

VCCI proposed completely abolishing the notification procedure for e-commerce websites and shifting to post-transaction monitoring to control the activities of these platforms.

E-commerce websites are essentially just a new sales channel on the internet, not a new type of business. — Photo vietstock.vn

The Vietnam Chamber of Commerce and Industry (VCCI) has commented on a draft decision proposed by the Ministry of Industry and Trade to help reduce and simplify administrative procedures related to production and business activities for this year.

On licensing procedures, VCCI argued that it is unreasonable to require all e-commerce platforms, regardless of size or mode of operation, to complete licensing procedures before they can operate.

This regulation is not suitable for smaller platforms or new start-ups, according to VCCI.

For social media, the law allows more relaxed management for smaller platforms, requiring only notification if the traffic is low and licensing when it grows to a sufficient level.

VCCI also considers this regulation unsuitable for the nature of e-commerce platforms.

Some platforms only allow sellers to post product information, with transactions (agreements, payments, shipping) carried out through other methods, such as phone calls or text messages.

These platforms act more like advertising or marketing channels. Critical steps in the transaction process do not occur on the platform itself, meaning there are fewer risks associated with this business model.

VCCI further stated that after more than a decade of development, e-commerce has become an inevitable trend, with the participation of many businesses and individuals.

The methods of inspection and supervision are becoming increasingly refined, and consumers' knowledge and skills have improved.

Relevant authorities therefore need to study and reassess the risks associated with e-commerce activities to cut down on administrative procedures and shift towards post-transaction monitoring.

E-commerce websites are essentially just a new sales channel on the internet, not a new type of business, VCCI argued.

Merchants are already required to register their business and certify their business conditions and product quality with the State. Adding procedures for online sales channels therefore creates unnecessary administrative burdens, VCCI stated.

Although Decree 85/2021/NĐ-CP has reduced the scope of websites with online ordering functions that need to notify authorities, VCCI argued that this reduction has limited significance. Creating sales websites is very common, with 44 per cent of businesses owning a website, and 42 per cent of those having online ordering features.

The number of notification files is substantial, reaching 105,103 records in 2023.

At the same time, there have been no reports of negative socio-economic impacts from businesses not registering e-commerce websites for sales.

These procedures therefore do not bring clear administrative benefits and may even become a barrier for merchants, according to VCCI.

As a result, VCCI proposed completely abolishing the notification procedure for e-commerce websites and shifting to post-transaction monitoring to control the activities of these platforms. 

Bizhub