Online-dispute Resolution Pilot for E-commerce in Vietnam

The Project at A Glance

Vietnam is considered as one of the fastest-growing digital economies in Southeast Asia, with remarkable achievements during 2016-2020. While the e-commerce activities have expanded, issues and disputes between buyers and sellers are more prominent, requiring the need for online dispute resolution (ODR) to help settle the issues.

International Economics (IEC) supported the Central Institute for Economic Management (CIEM) in the implementation of the DFAT-funded Project to promote ODR in e-commerce in Vietnam, ultimately strengthening customer protection.

What We Found

The concept of ODR is referred to as the use of technology to facilitate dispute resolution between parties, that means online negotiation, online mediation and online arbitration. By end of 2020, Vietnam had virtually no policy to formalize ODR and noteworthy that only one case was settled online in 2014. The need for ODR arose amid the COVID-19 pandemic in 2020 to ensure less cumbersome and less costly dispute resolution, whereby Vietnamese enterprises reverted to online platforms for contract negotiation, revision and settlement.

The team, through desk study, consultation with stakeholders and Survey to MSMEs, produced a Research Report to elaborate on ODR in e-commerce in Vietnam. Additionally, they also provided trainings to relevant stakeholders, on the use of online platform for dispute resolution.

Our Strategy and Impact

As Vietnam’s economy continues to grow and its economic integration process remains progressive, commercial transactions will increase. In the context of COVID-19 pandemic, applying platform-based models is highly relevant to support Vietnamese firms in their business activities.
To promote ODR in Vietnam, the team proposed a set of both general and specific policies.
The specific policies were structured around 4 key areas namely:

Economic and legal infrastructure;
IT infrastructure;
Human resource development; and
International cooperation

Our Core Solutions

ODR is essential for e-commerce. As e-commerce is growing increasingly all over the world, there has been a wave of laws and regulations encouraging/requiring the expanded availability of ODR. However, while some countries are far ahead in deploying ODR, other countries are behind. Governments must invest in this initiative to safeguard online consumers. At International Economics, we provide e-commerce solutions to simplify international commerce; We can assist governments and businesses worldwide in promoting ODR and in raising awareness.