Fine-Tuning Vietnam's Electronic Transactions Law To Promote Growth in E-Commerce

• Author: Stephen E. Blythe
• Pages: 214-228

JICLT

Journal of International Commercial Law and Technology

Vol. 9, No.4 (2014)

214

Fine-Tuning Vietnams Electronic Transactions

Law To Promote Growth in E-Commerce

Stephen E. Blythe

Professor of Accounting and Business Law,

College of Business Administration, Abu Dhabi University,

P.O. Box 59911, Abu Dhabi, United Arab Emirates

ecommercelaw@hotmail.com.

Abstract: In the digital age, the E-signature has replaced the h andwritten signature.

Since 1995, there have been three generations of E-signature law: the first mandated use of

the digital signature, the second recognized the legal validity of all types of E -signatures,

and the third recognizes all types of E-signatures, but gives preferred status to the digital

signature. Vietnam’s Electronic Transactions Law (“ETL”), enacted in 2005, is third-

generation; it recognizes all types of E-signatures, but favors use of the digital signature.

Accreditation requirements are specified for Certification Authorities (“CA”), the issuers of

certificates and verifiers to third parties that a digital signature is that of a specific

subscriber. The CA is responsible for maintaining the security of information that it

receives from its subscribers. The CA must inform th e subscriber of any limitations on the

use of the certificate. If an accredited CA issues a qualified certificate, i t must meet more

stringent security requirements which can only be achieved with a digital signature. CA’s

must maintain a publicly-accessible repository of certificates and the public keys which

relying third parties can use t o decrypt a subscriber’s message. A CA may in cur legal

liability for publishing a certificate with inaccurate information or for not issuing a private

key to the subscriber corresponding to the public ke y in the repository. The ETL allows

certificates issued by CA’s in foreign countries to be r ecognized if the y provide sufficient

security. The author recommends that the following provisions be added to the ETL: (1)

consumer protections for E-commerce par ticipants; (2) several new computer crimes; (3)

information technology courts; (4) mandatory E-government; (5) explicit long-arm

jurisdiction; and (6) recognition of legal validity of electronic wills.

1. Introduction

“Vietnam is a developing, mainly agrarian country that is moving from a centrally-planned economy to a

market economy.”1 More than 25% o f all Vietnamese now have access to the internet.2 As mo re and

more Vietnamese get online, E-commerce in Vietnam grows at an ever-expanding pace. In 2011, E-

commerce sales were only about $350 million, but during 2012 they spiked to $500 million; that’s a 43%

increase. And in 2015, the E-commerce market is forecast to be $2.5 billion, a 500% increase in only

three years.3

Despite these impressive numbers, E-commerce has been hampered by several factors: (a) the

preference of Vietnamese to use cash instead of credit cards in transactions, and the reluctance of

merchants to pay the 2% credit card fee; (b) more affluent persons in Vietnam are usually older and often

not computer-literate, and younger Vietnamese are often more computer-literate but have less money to

spend in E-commerce transactions; (c) wariness of many Vietnamese to purchase anything without seeing

and touching it;4 and (d) the failure of Vietnam’s E-commerce law to meet the needs of E-commerce

1 U.S. Department of State, Bureau of Consular Affairs, “Vietnam: Country Specific Information,” 20 November

2012, p. 1; http://www.state.gov/r/pa/ei/bgn/3396.htm.

2 U.S. Central Intelligence Agency (“CIA”), THE WORLD FACTBOOK, “Vietnam,” 7 January 2013, pp. 3, 15;

https://www.cia.gov/library/publications/the-world-factbook/geos/vm.html.

3 Anh-Minh Do, “E-Commerce in Vietnam: A Status Report,” Part 1, p. 1, ASIA E-COMMERCE, 13 December

2012; http://www.techinasia.com/ecommerce-vietnam-status-report-part-1/ .

4 Id.