MoIT’s proposal to drive green e-commerce in Vietnam

The Ministry of Industry and Trade (MoIT) has proposed a draft law on e-commerce that contains provisions for the green and sustainable development of the sector. It aims to promote economic growth, create community value, promote social equity and mitigate negative environmental impacts, the ministry said.

This bill is expected to be included in the legislative agenda for 2025, according to which it will be submitted to the National Assembly during the 10th session of the 15th legislature in October 2025 and will be approved during the 11th session in May 2026.

The move comes as the e-commerce sector grapples with increasing packaging waste and transportation emissions, which put significant pressure on the environment.

Post-pandemic food delivery booms. Photo: Hai Linh/The Hanoi Times

Without effective measures to reduce plastic waste, the Vietnam E-commerce Association (VECOM) predicts that by 2030, when Vietnam's e-commerce market will reach $100 billion, plastic waste from the sector could increase to 800,000 tons.

Economist Vu Vinh Phu called the bill timely and urgent, saying, "I hope this draft law will keep pace with the rapid development of e-commerce and create a stable framework that will facilitate effective government management while allowing e-commerce to flourish in Vietnam."

The bill outlines several key provisions, including the unification of definitions in accordance with existing legislation, the specification of e-commerce activities, the rights and obligations of stakeholders, and the responsibilities of service providers supporting green e-commerce.

Alarming plastic waste levels

According to a 2024 study by VECOM, the rapid growth of the e-commerce sector has led to numerous environmental challenges emanating from waste from packaging, order fulfillment and online food delivery.

VECOM estimated that the e-commerce market would have hit about $31 billion by 2024, with online retail accounting for more than $20 billion. The association predicted that the e-commerce market size will approach $40 billion by 2025 and $100 billion by 2030.

Nguyen Huu Tuan, Head of the Policy Department at the Vietnam E-commerce and Digital Economy Agency, noted that plastic waste generated by e-commerce has increased at least five times compared to traditional commerce.

Meanwhile, data from the World Wildlife Fund (WWF) found that Vietnam's online shopping and food delivery markets totaled $22 billion and $1 billion respectively last year, generating nearly 160,000 cardboard boxes and 171,000 tons of mostly single-use plastic waste.

Specifically, the e-commerce sector caused more than 7,600 tons of plastic waste for every $1 billion in sales, while food delivery accounted for nearly 18,600 tons of plastic waste.

New policies aim to raise the bar on sustainability

Vietnam's online shopping totals $22 billion in 2024. Photo: GHN

The e-commerce sector is facing significant challenges due to rising packaging waste and transportation emissions, which are putting significant pressure on the environment. At the same time, global standards for sustainability and green practices have become essential, forcing companies to adopt solutions that reduce emissions, use environmentally friendly materials, and develop green supply chains, according to the Ministry of Industry and Trade.

The ministry emphasized that the upcoming e-commerce policy must prioritize the development of environmentally friendly infrastructure, encourage enterprises to adopt green technologies, and raise consumers' awareness of sustainable consumption. These measures are aimed at protecting the environment, enhancing the competitiveness of Vietnam's e-commerce sector, and contributing to a sustainable digital economy.

The state agency also highlighted the need to adjust existing regulations to support sustainable e-commerce development for long-term growth.

The government has launched the National E-commerce Development Program for 2021-2025, which includes tasks and initiatives to promote the application of e-commerce, enhance production and business efficiency, stimulate domestic and export trade, and modernize e-commerce infrastructure.

In addition to the current regulations, the ministry has proposed additional measures to refine policies for the development of green and sustainable e-commerce. The draft includes an assessment of the impact of these new measures on those directly affected by the policies and other relevant stakeholders.

It also envisages greater allocation of government resources from national to local levels to promote sustainable e-commerce development. Businesses are encouraged to invest in technology and innovate their processes to meet new standards, particularly in green e-commerce. However, consumers may face higher product prices due to the costs associated with environmental standards and infrastructure improvements.

Le Hoang Oanh, Director of the Vietnam E-commerce and Digital Economy Agency, said that in 2025, they will continue to develop specialized legislation for e-commerce, a move that is seen as a top priority to create a stable legal environment conducive to sustainable e-commerce growth, she added.

Oanh said that in order to foster sustainable and green e-commerce while minimizing the impact on the environment, they will promote cooperation among stakeholders, engage with industry associations and enterprises, and strengthen coordination with various ministries and localities to strengthen regional links and support the digital transformation of traditional markets.

The agency will also strengthen the management of cross-border e-commerce platforms to ensure transparency and legal compliance, while actively promoting the use of AI in management and operations to advance the digital transformation of the industry. Oanh stressed the importance of continuously updating a shared database to ensure effective coordination among relevant government agencies.