“In the context of the hurdles caused by Covid-19 pandemic, numerous companies find it challenging to maintain their business. Prior to the pandemic, Internet-based businesses had been developing continuously in Vietnam. Presently, due to the impact of the Covid-19 pandemic, many businesses had to redefine their business operation to survive and to connect with more customers. Growing the business online is a significantly positive option.”
Currently in Vietnam, there are two prominent tendencies when it comes to digital-based businesses. That is, to create a website for sales and services of that company or to do business on E-commerce platforms that already have diverse customer base and resources
When doing business on a digital platform of its own, enterprises should note that such platform must qualify specific standards such as: operating policies website, delivery policy, return of goods, contracts with goods suppliers and shipping service providers and so on. In addition, enterprises must also pay attention to the goods and services that are going to be traded online in order to not fall into the category of those banned from trading or restricted from trading. Especially those dealing with high-concentration alcohol products or cigarettes. Another important point that enterprises often miss when operating on digital platforms is domain name protection and the risk of domain name disputes. From legal perspective, according to Circular 47/2014/TT-BCT regulating the management of e-commerce websites, traders must register their website with the Ministry of Industry and Trade.
Enterprises associated with e-commerce sites should pay close attention to the partnership contract, as well as the use of brand name, company names, and intellectual property assets for displaying and promoting goods and services. As a result, businesses should consider registering their intellectual property rights, such as trademarks and company slogans.
Enterprises doing business online must pay attention to the posting of information online. According to Decree 98/2020/ND-CP stipulating the sanctioning of administrative violations in commercial activities, production and trading of counterfeit goods, prohibited goods and for protection of consumers’ interests, measures will be taken to impose fines for any of the violations such as providing inadequate information to customers about traders, organizations or individuals that own e-commerce websites or mobile applications or inadequate information about goods, services, price, shipping, forwarding, payment method, contractual terms and general transaction conditions before the customer enters into a contract to use the online ordering function on the commercial website, electronic or mobile application.
Things which should be kept in mind when working on new channels for businesses:
- Choosing the right platform;
- Building business platforms: website development, signing cooperation contracts with e-commerce websites and product suppliers.
- Registration and announcement of e-commerce website.
- Registering the enterprise’s intellectual property assets to protect intellectual property rights.
- Continuously updating new legal documents on online business to enjoy the benefits of new policies or to mitigate the risk of violation in the field of trading on Internet platforms.
In general, online business is becoming a development that provides businesses with fresh and potentially lucrative business opportunities. In order to manage and supervise this activity, Vietnam is gradually completing and adding new regulations for this business method with the aim to:
(i) integrate with the world in terms of legal aspects as many countries and economic regions around the world have issued common rules of conduct for both businesses and users when interacting on digital platforms. This contributes to helping businesses and investors feel secure when doing business in Vietnam,
(ii) create a secure digital business environment for both businesses and users, in terms of ensuring security factors, and privacy of information and data that the user provides during the interaction.
While doing business, investors should grasp the technologies’ potential as well as the Vietnamese government’s legal strategy. This will assist businesses in entering the digital economy and doing business on digital platforms in Vietnam safely and profitably.