Prime Minister requests strict control of goods imported via e-commerce

In the Official Dispatch dated November 26, Prime Minister Pham Minh Chinh assessed that imported goods via e-commerce are putting great pressure on domestically produced goods. This affects the consumption of products by domestic enterprises.

Therefore, the Prime Minister requested the Ministry of Industry and Trade and the Ministry of Finance to jointly study and develop a mechanism to strictly control these goods. He noted that the proposed solutions must be consistent with Vietnam's international commitments.

In fact, in recent years, Vietnamese consumers have easily purchased goods online directly from abroad, through two main channels: international shops on domestic e-commerce platforms such as Shopee, Lazada, Tiki, TikTok Shop and cross-border retail platforms such as AliExpress, Shein, Temu.

According to product volume and transaction value (GMV), e-commerce data statistics units said that the market share of international shops on domestic platforms accounts for more than 10%. Data collected from 4 platforms Shopee, Lazada, Tiki, TikTok Shop in the period of April-September 2024 by EcomHeat (a unit of e-commerce consulting company YouNet ECI) shows that more than 12% of products sold are declared to be shipped from abroad.

On the management side, the Government is proposing to amend the Law on Tax Administration to tighten the grip on e-commerce and digital platform business. Accordingly, foreign suppliers (regardless of whether or not they have a presence in Vietnam) are expected to register, declare and pay taxes. Platforms must also declare and pay taxes on behalf of sellers. Along with that, the Government is also considering removing VAT exemption for imported goods under 1 million VND via e-commerce platforms, to avoid tax losses.

In addition to e-commerce, from now until the end of the year, the world situation is forecast to continue to be complicated, with risks of supply chain disruptions and strong fluctuations in oil prices. At the same time, domestic aggregate demand remains weak, problems in some energy and real estate projects have not been completely resolved, and domestic production and business are facing difficulties, especially in agriculture due to the impact of storm No. 3.

Therefore, the Prime Minister requested ministries and sectors to have solutions to develop the domestic market and stimulate consumption. Accordingly, the Minister of Industry and Trade was assigned to effectively implement solutions to regulate supply and demand, stabilize the market, and encourage consumption. This is to open up the domestic market, linking production with distribution and consumption of goods.

The ministry must also strengthen state management of domestic trade, market inspection and control. They need to support businesses in handling issues related to trade defense investigations, origin fraud, anti-smuggling, trade fraud and counterfeit goods.

The Governor of the State Bank was asked to continue directing credit institutions to research and develop products and services for the consumer sector and to serve people's lives. The Minister of Construction directed the research of mechanisms and policies to encourage the consumption of domestically produced construction materials.