Disputes keep pace with e-commerce growth
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As Vietnam’s digital economy grows, so does the incidence of disputes between online sellers and buyers. The e-commerce market grew by 16 percent to $14 billion in 2020 and is expected to be worth $52 billion by 2025, according to a report by Google. The number of disputes is also growing rapidly, with 24.4 percent of sellers embroiled in disputes last year,a survey by the Central Institute for Economic Management (CIEM) found.
The Vietnam E-Commerce and Digital Economy Agency said it handled over 250 cases of e-commerce violations last year like unregistered websites, selling low-quality products, and assuming false business identities to cheat consumers.
Besides, e-commerce platforms took down over 17,400 online stores and 34,600 products in the first five months of 2020, according to the agency.
Nguyen Anh Duong, head of the general research department at CIEM, said though e-commerce platforms have procedures for receiving customer complaints and settling disputes, they can only handle sellers’ violations by closing the stores and cannot to make them compensate customers they cheated.
Experts said the demand for an online dispute resolution (ODR) system in e-commerce is growing since many enterprises and individuals do business online.
But Vietnam lacks a clear legal framework for the ODR, and experts said it is needed immediately so that an ODR system could be deployed.
Questions & Answers
Q.What was the estimated value of Vietnam's e-commerce market in 2020 and what is its projected value for 2025?
What was the estimated value of Vietnam's e-commerce market in 2020 and what is its projected value for 2025?
Vietnam's e-commerce market was valued at $14 billion in 2020. It is expected to grow significantly, reaching an estimated worth of $52 billion by 2025, according to a Google report.
Q.What percentage of sellers experienced disputes last year, and who conducted this survey?
What percentage of sellers experienced disputes last year, and who conducted this survey?
Last year, 24.4 percent of sellers were involved in disputes, according to a survey. This finding was reported by the Central Institute for Economic Management (CIEM).
Q.What actions did e-commerce platforms take regarding problematic stores and products in the first five months of 2020?
What actions did e-commerce platforms take regarding problematic stores and products in the first five months of 2020?
In the first five months of 2020, e-commerce platforms removed over 17,400 online stores and 34,600 products. This action was taken to address various violations, according to the Vietnam E-Commerce and Digital Economy Agency.
Q.What limitation do e-commerce platforms face when resolving disputes, according to CIEM's Nguyen Anh Duong?
What limitation do e-commerce platforms face when resolving disputes, according to CIEM's Nguyen Anh Duong?
Platforms can only resolve seller violations by closing stores, but they cannot compel sellers to compensate cheated customers. This limitation highlights a gap in current dispute resolution mechanisms for e-commerce.
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