As Vietnam’s digital economy expands rapidly, foreign enterprises — especially those operating through online platforms — play an increasingly important role in supplying goods and services to Vietnamese consumers. However, this also places them under the scope of Vietnam’s consumer protection regulations, which have recently undergone significant reform to address the challenges of cross-border transactions and digital commerce.
1. Legal Framework
The core legislation governing consumer protection in Vietnam is the Law on Protection of Consumer Rights 2023, effective from July 1, 2024, replacing the 2010 law. This new framework modernizes Vietnam’s consumer protection regime by incorporating provisions on e-commerce, digital platforms, and cross-border transactions, making it highly relevant for foreign enterprises doing business with Vietnamese consumers.
In addition to the LPCR, other related legal instruments include:
- Law on E-Transactions 2023, governing online contracts and digital data integrity;
- Decree No. 55/2024/NĐ-CP;
- Law on Cybersecurity 2018 and Decree No. 53/2022/NĐ-CP, which regulate data storage and consumer information security.
2. Scope of Application to Foreign Enterprises
Under Article 3(2) of the LPCR 2023, the law applies not only to domestic enterprises but also to foreign traders conducting business with consumers in Vietnam, including those operating cross-border through digital means (e.g., websites, apps, or e-commerce platforms).
This means a foreign enterprise without a physical presence in Vietnam may still be subject to Vietnamese consumer protection obligations if:
- It sells goods or services to Vietnamese consumers online;
- It collects or processes Vietnamese consumers’ personal data; or
- It advertises, promotes, or distributes goods/services in Vietnam’s market.
3. Core Obligations of Foreign Enterprises
Foreign enterprises engaging in business with Vietnamese consumers must comply with several key obligations:
a. Transparency and Disclosure
They must provide clear, accurate, and complete information on product quality, origin, warranty, and return policies. Misleading or incomplete online advertisements can trigger administrative penalties under Vietnamese law.
b. Contractual Fairness
Standard form contracts and online terms of service must not contain unfair or abusive clauses. The LPCR 2023 requires prior disclosure and prohibits provisions that waive or limit consumers’ legal rights.
c. Data Protection and Privacy
Foreign entities collecting Vietnamese consumer data are subject to both consumer and cybersecurity regulations, including requirements to store or replicate data in Vietnam and obtain explicit consent for cross-border data transfers.
d. Complaint Handling and Redress Mechanisms
Foreign enterprises must maintain effective channels for handling consumer complaints and cooperate with Vietnamese authorities in resolving disputes. In some cases, a representative office or authorized entity in Vietnam may be required to handle compliance matters.
4. Enforcement and Sanctions
Violations of consumer protection laws can result in administrative fines, suspension of operations, or civil liability for damages. Where violations involve misleading advertising, data misuse, or unsafe products, penalties may also arise under the Law on Advertising 2012 (amended in 2025) or the Law on Cybersecurity 2018.
Notably, the Vietnam Competition and Consumer Authority (VCCA) under the Ministry of Industry and Trade (MOIT) has expanded authority to investigate cross-border consumer violations, including through international cooperation mechanisms.
5. Compliance Recommendations
Foreign enterprises should:
- Review online sales, advertising, and consumer terms for compliance with the LPCR 2023;
- Establish a Vietnam-based representative or contact point to coordinate with regulators;
- Implement robust consumer complaint procedures and maintain transparency in pricing and product information;
- Ensure compliance with data privacy requirements when processing information of Vietnamese consumers.
6. Conclusion
Vietnam’s updated consumer protection regime signals a new era of regulatory vigilance toward foreign enterprises engaging with Vietnamese consumers, particularly through online channels. Compliance now extends beyond product quality to encompass transparency, fairness, and data protection.
Foreign businesses that proactively align with these requirements will not only mitigate legal risk but also build stronger consumer trust and brand credibility in one of Southeast Asia’s most dynamic markets.
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