E-commerce is the conducting of buying and selling products or services via electronic systems connected to the internet or telecoms networks. — File Photo

HA NOI (Biz Hub)— Viet Nam is in the process of completing a legal framework for the regulation of e-commerce, which is becoming increasingly popular as technology and the internet boom.

The statement was made by Deputy Minister of Industry and Trade Tran Tuan Anh at a press conference held in the capital yesterday.

E-commerce is the conducting of buying and selling products or services via electronic systems connected to the internet or telecoms networks.

Anh said that the growth of e-commerce was an inevitable trend in the current age of internet technology and, therefore, sufficient regulations to govern it must be enforced without delay. He argued that the lack of a legal framework had already hindered the development of the market and the competitiveness of enterprises.

According to Tran Huu Linh, director of the ministry's E-commerce and Information Technology Agency, Viet Nam is estimated to have around 120 million active mobile phones and 34 million internet users, while the growth rate of 3G users is expected to rise 20 per cent per year. This market provides perfect conditions for e-commerce to thrive.

The ministry expected to complete the legal framework before the end of the year, with soon-to-be-released circulars providing guidance about regulations and information about the punishment for trade violations, he said.

Linh also pointed out that e-commerce, which is borderless and available 24/7, was a good tool to aid the operation and expansion of enterprises, as well as improving customer access, reducing costs and increasing profits.

The ministry said the e-commerce operations would be subject to tight management. Accordingly, the registry of websites, changes of registered information and operation reports must be submitted to the ministry via www.online.gov.vn as of July 1.

Additionally, the credit of websites will be rated to create consumer trust, and violators will be named and shamed online.

The decree will also provide regulations about the security requirements of customer profiles and transactions.

Linh stated that informal statistics showed there are about 100,000 websites in Viet Nam, two thirds of which were for selling products or services. — VNS