RISKS OF SHOPPING ON UNLICENSED E-COMMERCE PLATFORMS IN VIETNAM

The Ministry of Industry and Trade (MoIT) warned about risks associated with shopping on unregistered cross-border e-commerce platforms in Vietnam, raising concerns over product quality, data security and tax obligations.

Risks of product quality and origin

According to the E-commerce and Digital Economy Agency (MoIT), many Vietnamese consumers are attracted to products on international e-commerce platforms for their low prices and diverse designs. However, these platforms often lack authorization to operate in Vietnam, meaning they are not subject to quality control or supervision by regulatory authorities. Certain cross-border platforms, such as Temu, 1688 and Shein, are accessible in Vietnam but have not completed the necessary registration procedures. In response, the MoIT directed departments to review the impact and propose solutions.

Consumers face high risks when purchasing counterfeit, imitation or untraceable products. These items may not meet safety standards and, in some cases, may even fall under categories of goods prohibited in Vietnam. Particularly for health-related and safety-sensitive products such as dietary supplements, cosmetics, children's toys and electronic devices, substandard products could pose serious health risks to consumers.

Challenges in protecting consumer rights

The E-commerce and Digital Economy Agency warned that unregistered cross-border e-commerce platforms are not regulated for product quality or after-sales service, making it difficult for consumers to protect their rights when issues arise.

Consumers are likely to encounter situations where products received do not match descriptions, are defective, or pose health and safety risks, yet requests for returns or warranties are often met with obstacles. In cases of disputes, unregistered e-commerce platforms are not legally accountable within Vietnam, making the complaint resolution process complex and prolonged. Consequently, consumers may suffer financial losses and face challenges in resolving issues with foreign suppliers.

Risks related to taxes and data security

In addition to risks concerning product quality, consumers should also be cautious of legal risks when purchasing from unregistered e-commerce platforms. Goods purchased from these platforms may not be fully declared for taxes upon import into Vietnam, leading to tax-related issues. Consumers could encounter situations where goods are held at customs or incur unexpected additional taxes, resulting in overall costs that exceed the original sale price.

Moreover, cross-border transactions often require consumers to provide international payment information, such as credit card or electronic wallet details. This presents potential security risks, as personal data could be stolen or misused, exposing consumers to financial information security risks.

To protect consumer rights and ensure safety, the MoIT advised the public to be cautious when transacting on e-commerce platforms, particularly unregistered cross-border ones. For safer transactions, consumers should choose licensed platforms regulated by government authorities.

Consumers can check the list of registered e-commerce platforms on the E-commerce Operations Management Portal at online.gov.vn or contact the MoIT’s Consumer Support Hotline for further information and guidance.

Source: VCCI