NS

The law in Vietnam on e-transactions, issued in March 2006, exhibits some deficiencies concerning modern electronic transactions. Therefore, to promote electronic trade, the National Assembly of Vietnam in June 2023 approved the revised Law on Electronic Transactions. Here’s what this might mean for foreign firms.

In June 2023, the Vietnamese government approved the amended Law on Electronic Transactions (LoET) No. 20/2023/QH15. This was to ensure that Vietnam’s economy would keep pace with global technological advances and accurately conduct real-time transactions online.

The new law lays the groundwork for electronic transactions and adds new features to the original scope of application, definitions of e-transactions, e-contract performance, data sharing, and regulations on databases.

These efforts were made to reduce cross-border transaction fees for foreign firms and facilitate business transactions in the electronic environment. The amendments to the new law have also abolished unnecessary administrative procedures in the implementation of certain e-transactions, helping foreign firms to quickly adapt to the ever-evolving global digital payments landscape.

What’s an e-transaction?

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As per the LoET 2005, an e-transaction is defined as a transaction that is carried out by electronic means, which are unrestricted by geographical boundaries and are devoid of direct face-to-face interactions.