SHARING ECONOMY IN VIETNAM: CHALLENGES AND SOLUTIONS

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OVERVIEW OF SHARING ECONOMY IN VIETNAM

Definition and characteristics of sharing economy

The Oxford Dictionary describes the sharing economy as "an economic system in which assets or services are shared between private individuals, either for free or for a fee, typically by means of the internet."

Also, Sharing Economy UK, a trade body for the sharing economy industry, defines it as "the use of digital platforms or digital marketplaces to enable and facilitate the exchange, sharing or renting of goods, services, or skills directly between individuals or organizations."

The sharing economy is also known by many different names such as: Collaborative Economy (Cooperative Economy), On demand Economy, Platform Economy, Access Economy, Economy based on mobile applications (App Economy) Although with different names, the essence is all connected so that users can take advantage of each other's excess resources, return high economic value, have a significant impact on users, and save costs transaction fees and reach a large number of customers through digital platforms The sharing economy refers to a socio-economic system in which individuals share resources, such as goods, services, or skills, with one another through online platforms or offline networks It is characterized by the utilization of technology to facilitate the efficient and decentralized exchange of underutilized assets, promoting resource optimization, cost-sharing, and peer-to-peer transactions.

There are three main elements involved in the sharing economy model, specifically:

(i) Service Providers (Owner-Seller): Individuals who own idle assets can provide services or products to the market.

(ii) Customers (Buyers-Seeker): Individuals who directly engage in transactions and use the services or products provided by the sellers.

(iii) Platform Providers: Entities that provide a common platform to connect buyers and sellers, responsible for managing both parties to create value and maintain efficient platform operations.

Figure 1.1 Three main elements in the sharing economy model

The sharing economy is characterized by several key features:

Peer-to-Peer Exchange: The sharing economy enables direct transactions and exchanges between individuals, bypassing traditional centralized intermediaries It allows individuals to share their underutilized assets or resources with others in a mutually beneficial manner.

Technology has revolutionized the sharing economy, serving as a catalyst for its growth Digital platforms and apps have emerged as key enablers, facilitating seamless connections between individuals and fostering trust These platforms streamline transactions and provide convenient access to a vast array of resources, making the sharing economy accessible and efficient Furthermore, the ease of use and widespread adoption of technology contribute to the growing popularity and sustainability of the sharing economy.

Access over Ownership: The sharing economy shifts focus from ownership to access Instead of owning assets, individuals can access goods, services, or skills on a temporary or as-needed basis, reducing the need to purchase and store items that may be infrequently used.

Economic Benefits: The sharing economy offers various economic benefits.Providers can monetize underutilized assets, earning income from sharing resources Consumers can access resources at a lower cost compared to traditional ownership or service models, potentially saving money.

Trust and Reputation Systems: Trust is a fundamental aspect of the sharing economy Digital platforms often incorporate reputation systems, user reviews, and ratings to establish trust between participants This allows users to evaluate the reliability and quality of individuals offering goods or services.

Flexibility and Convenience: The sharing economy allows for flexible and on-demand access to resources Users can find and book services or resources quickly and efficiently, often with flexible scheduling options This convenience factor makes it appealing for both providers and consumers.

Resource sharing plays a crucial role in fostering sustainability and optimizing resource allocation Collaborative consumption models enable efficient utilization of underutilized assets, reducing waste and minimizing the demand for excessive production This approach promotes sustainability by eliminating the need for overproduction and encouraging responsible consumption patterns By sharing resources, individuals can optimize their use, minimize environmental impact, and drive towards a more sustainable future.

Regulatory Challenges: The sharing economy presents regulatory challenges as it often operates outside traditional regulatory frameworks Issues such as taxation, labor rights, liability, safety, and consumer protection require careful consideration to ensure a fair and inclusive sharing economy ecosystem.

The prevailing global landscape of the sharing economy

1.2.1 The growth and significance of the sharing economy on a global scale

The sharing economy has experienced significant growth and gained immense significance on a global scale over the years In this comprehensive analysis, we will explore the factors that have contributed to the rise of the sharing economy, its impact on various industries and sectors, the challenges it faces, and its potential for future growth.

Pioneered by developed nations such as the US, UK, Germany, France, and Japan, the sharing economy has witnessed significant growth, with technology giants like Uber, Airbnb, and Grab revolutionizing traditional industries These companies exemplify the sharing economy model and have transformed the operational landscape, showcasing the transformative power of technology in enabling asset sharing.

However, in recent years, the sharing economy model has expanded to developing countries The sharing economy has been particularly beneficial in developing countries, where it has helped bridge economic inequalities A report by the World Bank estimates that by 2022, the sharing economy could add $2 trillion to the global economy, with developing countries accounting for a significant portion of this growth The use of mobile applications to share rides, accommodations, and jobs has become more popular in countries like India, China, and Brazil Local companies have emerged and launched sharing services, bringing significant changes to how users access and utilize these services Ride-hailing services are experiencing increased popularity due to several factors, including the convenience of payment, transparent pricing, the assurance of knowing the driver's identity through the app, and the provision of door-to-door service

By increasing demand for flexible transportation options and cost savings, in

2021, the worldwide market size for ride-hailing and taxi services stood at USD 199.14 billion and it is anticipated to grow steadily with a compound annual growth rate (CAGR) of 11.7% from 2022 to 2028 (as per a report generated by Grand View Research) Futhermore, according to the report by PricewaterhouseCoopers (PwC), by 2025, the sharing economy is projected to reach a market value of $335 billion

Figure 1.2: Growth forecast of the sharing economy and sectors with a traditional operating model

The sharing economy presents an alternative to traditional business models, providing opportunities for individuals to leverage their assets and skills, and for consumers to access a wider range of options Both models have their distinct advantages and considerations, and the choice between them often depends on the specific industry, market, and individual preferences.

Besides, there are several benefits when the sharing economy expands to developing countries Firstly, it createss new business opportunities and stimulates economic growth By utilizing underutilized assets such as cars or rooms, it enhances resource utilization and generates income for users Secondly, it provides affordable and convenient services for people, especially in developing countries with low incomes Lastly, it contributes to reducing environmental pollution and resource consumption, meeting the sustainability requirements of society.

The expansion of the sharing economy has brought numerous benefits to both users and the economy, while also contributing to the development of a sustainable society.

Looking ahead, the sharing economy is poised for further growth and evolution As technology continues to advance, we can expect to see new and innovative sharing platforms and business models emerge The integration of artificial intelligence, blockchain, and the Internet of Things (IoT) can potentially revolutionize the sharing economy by enhancing trust, security, and efficiency in transactions.

The sharing economy has contributed to the rise of the Gig economy, where individuals work on a freelance or project basis The Gig economy refers to digital platforms that facilitate freelance professionals in connecting with potential clients for temporary assignments, contracted projects, or asset-sharing opportunities,involves people who balance a range of income streams and work independently,job-by-job.

Figure 1.3 Projected gross volume of the Gig economy from 2018 to 2023

By 2023, the gig economy is projected to reach a value of $455.2 billion, reflecting a doubling of its growth rate from 2018 This significant expansion is attributed to the increasing demand for flexible work arrangements and specialized services The sharing economy empowers individuals to monetize their underutilized assets and provides gig workers with access to diverse job opportunities, flexible work schedules, and enhanced earning potential The growth of the gig economy underscores its transformative impact, offering individuals opportunities to participate in the workforce on their terms while providing businesses with a diverse talent pool As technology continues to drive the sharing economy, it becomes crucial to address challenges to ensure a fair and thriving ecosystem for all stakeholders.

For professional services supplied by the sharing economy, Upwork, a popular freelancing platform, reported over 12 million registered freelancers and over 5 million registered clients in 2020 Freelancing platforms have revolutionized the way people work, providing a marketplace where freelancers can offer their services and clients can find talented professionals for various projects These platforms offer a range of services across diverse industries such as writing, design, programming, marketing, and more The large number of registered freelancers highlights the increasing appeal of freelancing as an alternative to traditional employment Freelancing offers individuals flexibility in terms of choosing projects, setting their own working hours, and working with clients from around the world It allows talented professionals to leverage their skills and pursue a fulfilling career on their own terms By utilizing the sharing economy model, freelancing platforms enable individuals to monetize their skills and expertise, essentially sharing their knowledge and abilities with clients around the world This allows freelancers to leverage their talents and find opportunities beyond their local market, opening up a global marketplace for their services For clients, the sharing economy aspect of freelancing platforms provides access to a diverse pool of talent Businesses and individuals can find specialized professionals from various disciplines, allowing them to access specific skills and expertise that may not be readily available in their local area This enables clients to tap into a global talent pool and work with freelancers who can deliver high-quality work remotely Overall, the reported numbers of registered freelancers and clients on a freelancing platform underline the importance of the sharing economy in connecting freelancers with clients and creating opportunities for both parties The sharing economy model, facilitated through online platforms, has transformed the way people work and find specialized services, providing flexibility, efficiency, and access to a global marketplace.

The growth and significance of the sharing economy on a global scale cannot be understated It has reshaped industries, empowered individuals, and stimulated economic activity While challenges remain, the potential for further growth and positive impact on society and the environment is vast As the sharing economy continues to evolve, it will be essential for stakeholders to work together to address regulatory concerns, foster innovation, and ensure the sustainability and inclusivity of this transformative economic model.

1.2.2 The evolution of the sharing economy in selected influential countries

The sharing economy has experienced significant evolution in several influential countries, including the US, the UK and China Here's a brief overview of their involvement in the sharing economy and the reasons for their prominence:

The US has played a pivotal role in shaping the sharing economy for several reasons:

- Technological innovation: Many of the leading sharing economy platforms, such as Uber, Airbnb, and TaskRabbit, were founded in the US The country's vibrant startup ecosystem, access to venture capital, and technological advancements have contributed to the growth of the sharing economy In addition, Amazon, the largest e-commerce marketplace (was founded by Jeff Bezos in Washington, on 5 th July 1994) , reported net sales of USD 513.98 billion in 2022, the growth has increased 73-fold compared to the year 2004 The rise of e- commerce platforms like Amazon has significantly impacted the sharing economy in the U.S The sharing economy allows individuals and businesses to offer their products, services, and resources to a larger market, facilitated by online platforms.

In summary, the success of e-commerce platforms like Amazon highlights the significant role they play in shaping the sharing economy in the U.S These platforms have revolutionized how goods are bought and sold, providing opportunities for individuals and small businesses However, it is crucial to address the associated challenges to ensure a fair and inclusive sharing economy that benefits all stakeholders.

Figure 1.4 Annual net sales revenue of Amazon from 2004 to 2022

- Cultural acceptance: The US has a culture of entrepreneurship, risk-taking, and embracing new business models This cultural openness has supported the rapid adoption and development of sharing economy services Freelancers accounted for 35% of the U.S workforce in 2020, which translates to around 59 million people. The sharing economy has had a substantial impact on the U.S labor market, with freelancers representing a significant portion of the workforce It has created opportunities for individuals to leverage their skills, contributed to entrepreneurship and job creation, and allowed greater flexibility in work arrangements To fully harness the benefits of the sharing economy, it is essential to address the associated challenges and ensure a fair and inclusive environment that protects the rights and well-being of those participating in this dynamic ecosystem.

Overview of sharing economy in Vietnam

1.3.1 Emergence and growth of sharing economy in Vietnam

The sharing economy has seen significant growth and emergence in Vietnam in recent years This development is largely driven by the increasing use of information technology and the internet, along with changes in the approach to accessing and utilizing resources.

The rise of internet and smartphone penetration has fostered a fertile ground for the sharing economy's growth Enhanced accessibility to digital platforms facilitates connections among users, expedites transactions, and promotes trust within the sharing economy ecosystem.

Internet penetration in Vietnam has been rapidly increasing over the years. According to recent statistics, as of 2021, around 75% of the population in Vietnam has internet access This widespread connectivity has provided a foundation for sharing economy platforms to operate and connect service providers with customers.

Similar to internet penetration, smartphone adoption in Vietnam has witnessed remarkable growth With affordable smartphones becoming more accessible, many Vietnamese individuals now own smartphones This has been a key enabler for the sharing economy as mobile apps provide a convenient and user- friendly way to access and engage with sharing platforms.

The increasing internet and smartphone penetration in Vietnam has allowed various sharing economy platforms to enter the market Platforms such as Grab,Gojek and Airbnb have gained popularity in the country These platforms have disrupted traditional industries like transportation, accommodation, and logistics by offering convenient and cost-effective services.

With widespread internet and smartphone usage, customers in Vietnam have easy access to a wide range of sharing economy services They can book transportation, find accommodation, or hire service providers with just a few taps on their smartphones Sharing platforms offer competitive pricing and increased convenience compared to traditional alternatives, making them attractive options for consumers

Urbanization and Population Density: Vietnam has experienced rapid urbanization in cities like Ho Chi Minh City and Hanoi This concentration of population and resources has created demand for more efficient and convenient sharing economy services, such as ride-sharing, food delivery, and shared accommodation Urbanization has a notable influence on the sharing economy, leading to significant shifts in consumer behavior and the growth of collaborative consumption The following factors highlight the connection between urbanization and the sharing economy:

Access to a diverse range of sharing platforms: Urban areas typically host a plethora of sharing platforms and services, making it easier for residents to participate in collaborative consumption Ride-sharing services, home-sharing platforms, and skill-sharing networks are readily available in urban areas, providing convenient and cost-effective options for sharing resources.

Emphasis on efficient resource utilization: The dense population and limited space in urban environments necessitate effective resource management As a result, urban consumers are more inclined to utilize and share existing resources rather than independently owning or purchasing them Sharing platforms enable individuals to access resources on-demand, promoting efficient utilization and reducing wasteful consumption practices.

Changing perceptions of ownership: Urbanization has contributed to a shift in consumer attitudes towards ownership With limited living spaces and higher costs of living, urban residents are more open to the idea of sharing and accessing resources rather than individually owning them This shift in perception supports the growth of the sharing economy by fostering a culture of resource sharing and reducing the need for excessive ownership.

Urban areas boast advanced technology and connectivity, which nurtures the growth of sharing economy platforms These platforms leverage technology to provide user-friendly interfaces, simplifying the process of searching, booking, and transacting shared resources Such convenience and accessibility empower urban residents to effortlessly engage in collaborative consumption.

Sustainability and community-building: Urbanization increases awareness of environmental concerns and fosters a sense of community engagement The sharing economy aligns with these values, emphasizing sustainable resource usage and community connections Sharing resources reduces waste and encourages social interactions, contributing to a more sustainable and connected urban environment.

In summary, urbanization plays a pivotal role in shaping consumer behavior and propelling the growth of the sharing economy Access to sharing platforms, changing perceptions of ownership, technological integration, sustainability concerns, and community-building contribute to the successful integration of the sharing economy within urban areas Understanding the relationship between urbanization and the sharing economy is crucial for businesses, policymakers, and urban residents to navigate the evolving landscape of collaborative consumption effectively.

Rising Middle Class: The growing middle class in Vietnam has contributed to the demand for affordable and convenient services Sharing economy platforms allow people to access goods and services at lower costs compared to traditional models, catering to the needs of this expanding consumer segment.

As the middle class in Vietnam has grown, so has their disposable income. The rising middle class has more financial resources to spend on goods and services, creating a demand for convenient, affordable, and innovative solutions offered by sharing economy platforms

CHALLENGES OF SHARING ECONOMY IN VIETNAM

Challenges pertaining to the legal frameworks 44 1 Ambiguities and gaps in existing legal frameworks for the

2.1.1 Ambiguities and gaps in existing legal frameworks for the sharing economy in Vietnam

Decision No 999/QD-TTg, signed by the Prime Minister on 12th September

2019, signifies the approval of the Scheme to promote the sharing economic model in Vietnam This decision highlights the government's recognition of the positive potential and benefits that the sharing economy can bring to the country's economic and social development The Scheme aims to create a conducive environment for the sharing economy by implementing a range of measures These measures revolve around the development and revision of legal frameworks, the promotion of digital technology applications, the efficient use of resources, ensuring fair competition, and safeguarding the rights and interests of consumers and providers operating within the sharing economy The decision also stresses the importance of raising public awareness and understanding of the sharing economy model and its associated advantages and risks The active involvement and collaboration of relevant ministries, agencies, local authorities, and the private sector are encouraged in effective implementation of the Scheme

By approving this Scheme, the government demonstrates its commitment to fostering the growth of the sharing economy in Vietnam It provides a comprehensive roadmap for harmonizing traditional and sharing economy businesses, fostering competitiveness, encouraging innovation, and establishing fair market conditions while ensuring the protection of the rights and interests of all stakeholders Through Decision 999, the Prime Minister has delegated responsibilities to ministries and sectors for the establishment of a business and investment ecosystem based on the sharing economy model This entails the formulation and proposal to the Government of a regulatory sandbox for new business areas within the sharing economy.

In addition to the positive potential, it is important to consider the potential negative impacts of the promotion of the sharing economy as outlined in Decision

No 999/QD-TTg The decision acknowledges the need for developing and revising legal frameworks to support the sharing economy However, specific guidance and clarity regarding the implementation and enforcement of regulations may be lacking This can create uncertainties for both providers and consumers operating within the sharing economy While the decision highlights the importance of protecting the rights and interests of consumers, it may not provide specific guidelines on ensuring sufficient consumer protection measures Ambiguities surrounding liability, dispute resolution mechanisms, and recourse options for consumers may arise Futhermore, the decision emphasizes the need to address tax evasion concerns related to the sharing economy However, specific guidelines on taxation and financial regulations for sharing economy participants may require further elaboration to provide clarity and avoid potential loopholes.

The current regulatory landscape in Vietnam poses challenges for the sharing economy due to a lack of specific regulations tailored to its innovative business model Existing laws primarily address traditional businesses, creating a regulatory gap that hinders the proper application of relevant regulations to these platforms This absence of clear guidelines underscores the need for the development of tailored regulations to effectively support the growth and innovation of the sharing economy in Vietnam.

The decentralized nature of the sharing economy poses challenges in monitoring and enforcing compliance With peer-to-peer transactions becoming commonplace, ensuring that platforms and users comply with licensing requirements becomes complex Traditional regulatory methods may not be sufficient to address the dynamic and ever-evolving nature of sharing economy platforms.

Policies on labor management, employment, and social security are lacking.Workers' rights in the sharing economy model are a critical issue that necessitates government intervention It is vital for employees and employers in the sharing economy to protect the lawful rights and interests of entities in the sharing economy The sharing economy also displays managerial shortcomings, making it difficult for authorities to assess the nature and mode of operation The present legal texts, such as the Law on Investment 2014, the Law on Enterprises 2020, and other legal laws such as the tax law and the e-commerce law, do not include explicit requirements linked to the sharing economy Financial obligations policy (Law onE-Transactions 2005) The issuance of business licenses remains difficult because this activity is not yet included in the list of business lines Furthermore, there is a lack of rules to promote fair competition between the traditional economy and the sharing economy in each industry, such as inequity in business registration and service cost determination There is a shortage of legislation to safeguard consumers' interests in product or service quality management, particularly in defining more clearly the need to protect consumers' interests in e-commerce- related activities Lack of tools and rules to clearly define the duties of the partners in the sharing economy.

The cybersecurity system still harbors many potential risks, including the leakage of user information and technological risks during usage The regulations on information security have not fully addressed the responsibilities of all parties when information is leaked or lost Even more serious is the unauthorized sale of information without the consent of customers The gaps in tax obligations of these types of enterprises in the sharing economy in Vietnam need to be addressed. Currently, there is a lack (or incomplete) of mechanisms and policies governing cross-border electronic payment transactions to effectively monitor the tax obligations of foreign partners participating in business activities in Vietnam The decentralized nature of the sharing economy can make it difficult to track and regulate income generated through these platforms Traditional tax frameworks may not capture the full revenue generated from peer-to-peer transactions For example, tax regulations for ride-hailing services may need to consider strategies for ensuring proper reporting and collection of taxes from drivers who may be earning income on a part-time or intermittent basis.

The mechanism and policy for clarifying clear responsibilities of parties in the sharing economy are not yet complete Protecting consumer rights is also an issue that needs to be addressed due to the lack of specific management regulations With the emergence of third-party technology platforms, contract relationships in the sharing economy involve at least three parties instead of the traditional two-party relationships The legal framework regulating the responsibilities of each party in contractual relationships needs to be revised and supplemented This is also one of the reasons why countries around the world (including developed countries) need to adjust their legal systems to adapt to the new context of the sharing economy.

Furthermore, tax management in the sharing economy model is not effective due to the lack of clear legal provisions on the business model and incomplete tax management mechanisms and policies To be able to monitor the tax obligations of foreign partners participating in business activities in Vietnam, it is necessary to improve tax management mechanisms and policies For foreign businesses operating in the sharing economy model in Vietnam, generating revenue inVietnam, they can only pay corporate income tax based on revenue because they cannot manage their expenses from overseas and do not have a permanent establishment in Vietnam Consequently, this leads to inequality between domestic and foreign businesses Tax issues, especially the issue of taxing cross-border service providers and the issue of double taxation avoidance, need to be addressed in tax policy adjustments Activities in the sharing economy model in the goods transport sector face challenges in tax declaration as the legal system does not recognize the technology business model in this area Therefore, tax obligations should be implemented based on the transport business, where revenue should be accounted for based on the total transaction value of the shipment, which is significantly higher than the fees collected by the business as a connector If implemented through a policy test mechanism (Sandbox), this sector will reduce cash flow risks.

Specifically for each key sector:

There are some existing legal frameworks such as Decree 86/2014/ND-CP on business and conditions for transportation business by auto, which regulates conditions for the transport of passengers and goods by automobile, including private vehicles used for ride-sharing services The current regulations may not address the unique characteristics and operational models of ride-sharing platforms, creating uncertainties in terms of safety standards, insurance requirements, and liability obligations Besides, there may be uncertainties regarding the legal classification of ride-sharing services, leading to inconsistencies in regulations This can create difficulties in differentiating between private vehicles and commercial operations, resulting in regulatory gaps.

There may be a lack of comprehensive regulations addressing home-sharing platforms and short-term rentals Existing regulations in Vietnam primarily classify residential properties for residential purposes only However, when these properties are used for commercial purposes, such as short-term rentals, it creates ambiguity in terms of zoning and land use The lack of specific regulations addressing this issue creates legal loopholes, with some homeowners taking advantage of the situation and using their residential properties for short-term rentals without proper oversight.Ambiguities surrounding zoning and land use for residential properties used for commercial purposes may create legal loopholes and regulatory inconsistencies.

While some local authorities require hosts to obtain licenses or register their properties for short-term rentals, there is inconsistency in the enforcement and implementation of these regulations This ambiguity in licensing and registration processes leads to a lack of comprehensive oversight and control over the quality and safety standards of accommodations offered on sharing platforms.

The sharing economy faces tax compliance challenges due to unclear guidelines on value-added tax (VAT) and personal income tax (PIT) for participants The absence of explicit VAT regulations for Vietnam's sharing economy leaves e-commerce platforms and service providers uncertain about VAT registration and calculation Similarly, PIT obligations for individuals earning income through sharing economy platforms are undefined, leaving questions about income reporting and tax payment Taxable income determination is also complex due to multiple income sources and potential record-keeping gaps among participants, hindering tax assessment and collection by authorities.

The Vietnamese food safety law (Decree 15/2018/ND-CP) aims to ease regulatory burdens and boost international trade, but gaps remain for food sharing in the sharing economy While the law addresses food safety in general, it doesn't specifically consider food-sharing platforms' unique characteristics and models, leading to uncertainties in food safety standards, inspections, and accountability Furthermore, disclosing ingredient information, allergens, and sourcing details is unclear, impacting consumer safety and trust Enforcement challenges arise due to platforms operating online and involving small-scale sellers, making monitoring and regulation difficult for authorities.

For professional services within the sharing economy may struggle with uncertainties surrounding licensing and certifications The lack of clear requirements for professionals operating within this model can result in confusion regarding qualifications and consumer protection

Consumer trust and safety challenges

2.2.1 Challenges for consumer trust of sharing economy in Vietnam

Consumer trust is crucial for the success and growth of the sharing economy in Vietnam However, there are several challenges that may affect consumer trust in this sector:

Lack of Regulation and Enforcement: One of the primary challenges in ensuring consumer trust and safety is the absence of comprehensive regulations specifically tailored to the sharing economy This leads to a lack of enforcement mechanisms, making it difficult to hold sharing economy platforms and service providers accountable for any breaches in trust or safety

Trustworthiness of Service Providers: In the sharing economy, consumers interact directly with individual service providers This can raise doubts about the trustworthiness, reliability, and competence of these providers, particularly in cases where there are no established credentials or certifications.

Information Asymmetry: In the sharing economy, consumers often rely on information provided by the platform or service provider to make decisions.However, there can be a significant information gap between what is presented and the actual quality or safety of the offering This asymmetry can undermine consumer trust and safety.

Quality Control: Maintaining consistent quality standards across different sharing economy services can be challenging With numerous providers and lack of centralized oversight, ensuring that services meet the expected safety standards can be difficult This can lead to variations in service quality and potentially compromise consumer safety.

Privacy and Data Protection: Sharing economy platforms collect and process a significant amount of personal data from users Protecting this data from unauthorized access and misuse is crucial for maintaining consumer trust However, challenges arise in terms of implementing robust data protection measures and addressing concerns related to data privacy.

Fraud poses a substantial threat to the sharing economy due to the prevalence of fake listings, identity theft, and payment scams These deceptive practices compromise consumer trust and safety, leading to the erosion of the platform's reputation Consequently, preventing and mitigating such fraudulent activities is crucial for maintaining the integrity and sustainability of the sharing economy.

Worker Safety and Fairness: Consumer trust and safety are not limited to consumers alone but also extend to workers in the sharing economy Ensuring worker safety, fair compensation, and adequate working conditions present additional challenges that must be addressed to maintain trust and safety for all stakeholders.

2.2.2 Safety and data protection regulations in Vietnam and challenges in implementing them

Traditional regulations include consumer protection measures that may not fully address the unique challenges of the sharing economy For instance, liability and dispute resolution mechanisms for issues such as property damage, personal injury, or scam incidents may need to be adapted to accommodate the dynamic nature of these platforms Instances of fraudulent listings, unsafe accommodations, or unscrupulous service providers have highlighted the need for effective consumer protection measures in the sharing economy In Vietnam, Vietnam's Consumer Rights Protection Law provides guidelines for consumer protection, including the right to fair and transparent transactions; the Law on Cybersecurity effectively since

2019 In 2020, Vietnam's Ministry of Industry and Trade launched the "Code ofConduct for E-commerce and Digital Economy" to enhance consumer protection measures in the sharing economy sector

On 17 April 2023, Vietnam issued Decree No 13/2023/ND-CP on Personal Data Protection (“Decree”), its first data protection law The Decree compiles provisions relating to data protection contained in various other laws into one instrument The Decree will come into effect on 1 July 2023

The challenge lies in ensuring that sharing economy platforms comply with these laws and safeguard user data This includes implementing strict data protection measures, obtaining consent before collecting personal data, and storing data securely.

In Vietnam, ensuring safety and data protection in the sharing economy can be particularly challenging due to limitations in technical infrastructure and lower levels of technological advancement.

One challenge is the lack of robust technical infrastructure to support secure and reliable sharing economy platforms Weak internet connectivity and outdated digital infrastructure can hinder the smooth operation of sharing economy services. This can make it difficult for platforms to implement adequate security measures to protect user data and ensure safe transactions.

Additionally, the lower level of technological advancement in some areas of Vietnam can pose challenges to data protection in the sharing economy Outdated or insufficient technology may make it easier for cybercriminals to exploit vulnerabilities and gain unauthorized access to consumer data This increases the risk of data breaches and compromises user privacy.

The sharing economy heavily depends on data collection and analysis to match users with relevant services and enhance their experiences Nonetheless, the absence of advanced technologies and data analytics capabilities could hinder platforms' ability to efficiently manage and safeguard user data Furthermore, inadequate resources for implementing robust data protection measures, such as encryption and data anonymization, can amplify the risks associated with user information exposure.

Collaboration between the government, private sector, and technology providers is crucial to develop and implement regulations and guidelines that promote safety and data protection in the sharing economy Establishing clear standards and requirements for data privacy and security, as well as conducting regular audits and assessments, can help ensure compliance and prevent data breaches.

Futhermore, there are several challenges to dealing with safety and data protection regulations in Vietnam:

Lack of Awareness and Understanding: Many small and medium-sized enterprises (SMEs) may not fully understand their obligations under data protection regulations For example, they may collect unnecessary personal data or fail to obtain proper consent from individuals Individuals may not be aware of their rights or the risks associated with sharing personal data This lack of awareness can lead to individuals unknowingly exposing their personal information.

Challenges stemming from conflicts with traditional businesses 56 1 Economic disruption and competitiveness challenges for

2.3.1 Economic disruption and competitiveness challenges for traditional businesses

One of the main challenges that traditional businesses face in the sharing economy in Vietnam is economic disruption The traditional business models often rely on long-standing structures and established practices When sharing economy platforms enter the market, they can disrupt these traditional industries by offering alternative, more convenient, and often cheaper services This disruption can lead to a loss of market share and revenue for traditional businesses These are some economic disruption and competitiveness challenges are significant hurdles that traditional businesses in Vietnam face when operating in the sharing economy:

Market Development: Vietnam's sharing economy market is still relatively nascent compared to more mature markets like the United States and China This means that the impact on traditional businesses may be less pronounced at the moment, giving them more time to adapt and adjust their strategies.

Cultural Considerations: Vietnamese consumers have unique cultural and behavioral preferences that may shape the impact of the sharing economy on traditional businesses For instance, traditional markets ("cho") play an essential role in Vietnamese daily life and are deeply ingrained in the culture Despite the rise of online shopping and delivery platforms, traditional markets continue to thrive, indicating a resilient demand for traditional businesses.

Economic Factors: Vietnam's economic context, including factors such as income levels, market competitiveness, and the presence of informal economies,can influence how traditional businesses are affected In sectors with lower purchasing power or where consumers value personal relationships and trusted local vendors, traditional businesses might be relatively more resilient to the impact of sharing economy platforms.

Vietnam's technology infrastructure has seen improvements in adoption and digital access; however, disparities persist, particularly in rural and remote regions This lack of connectivity and awareness of sharing economy platforms may hinder the widespread impact of these services on traditional businesses, limiting their reach to more localized areas.

Some examples and insights into economic disruption and competitiveness challenges for traditional businesses posed by the sharing economy in Vietnam, especially in 5 key sectors:

- Traditional taxi companies in Vietnam faced significant disruption with the rise of ride-hailing platforms like Grab and GoViet

- These platforms offered more cost-effective, convenient, and efficient transportation solutions, leading to a shift in consumer preference

- Taxi businesses had to adapt and compete by improving their service quality, pricing, or by launching their own app-based services.

- Traditional hotels and guesthouses faced competition from home-sharing platforms like Airbnb, Luxstay, and Traveloka

- These platforms allowed individuals to rent out their homes or spare rooms, offering unique and often more affordable accommodation options

- Hotels had to differentiate themselves by emphasizing the benefits of their services, such as professional management, standardized quality, or aditional amenities.

- Traditional brick-and-mortar retailers faced challenges from the rapid growth of e-commerce platforms like Lazada and Shopee.

- Online platforms offered a wider range of products, competitive pricing, and the convenience of doorstep delivery.

- Traditional retailers had to enhance their digital presence, develop online sales channels, and focus on providing unique in-store experiences to stay relevant.

- Traditional restaurants faced disruption from food delivery platforms likeGrabFood, Loship and Baemin.

- These platforms provided consumers with a wide selection of food from various restaurants, along with delivery services.

- Restaurants adapted by partnering with food delivery platforms, optimizing their menus for takeaways, or enhancing their dine-in experiences.

- Traditional service providers such as consultants, tutors, and freelancers faced increased competition from online platforms like Fiverr and Upwork.

- These platforms connected clients directly with skilled professionals, offering a broader pool of talent and potentially lower costs.

- Traditional service providers had to emphasize their expertise, established networks, and personal touch to differentiate from online platforms.

2.3.2 Impact on income inequality, job security, and displacement of traditional service providers

The emergence of the sharing economy in Vietnam has presented several challenges in terms of income inequality, job security, and the displacement of traditional service providers.

While the sharing economy has provided income-generating opportunities for individuals with spare assets or specialized skills, there is a risk that the benefits primarily concentrate in the hands of a select few platform owners or highly skilled professionals This may widen the income gap between those who can access and benefit from the sharing economy and those who cannot.

The flexible nature of Gig work in the sharing economy can offer individuals autonomy and opportunities for supplemental income However, it also poses challenges to job security Gig workers often lack employment benefits, like insurance or retirement plans, and they face income instability due to the unpredictable nature of Gig work This can lead to financial insecurity and a lack of stability in workers' lives.

The sharing economy has shaken up industries like transportation and lodging, intensifying rivalry As incumbents like taxi drivers and hoteliers try to negotiate the changing market dynamics, they risk displacement and lower earnings They may struggle to compete with sharing economy platforms' lower costs and flexibility Traditional service providers may face displacement and reduced incomes as they struggle to adjust their business models to a shifting market landscape driven by sharing economy platforms It becomes crucial to acknowledge the potential adverse effects on these workers and ensure a just transition for all parties impacted.

Futhermore, the impact of the sharing economy on income inequality, job security, and displacement of traditional service providers can vary across different sectors in Vietnam.

- Income inequality: The sharing economy can provide opportunities for individuals with vehicles to earn additional income For examples, ride-sharing platforms can provide opportunities for individuals with higher-quality or more desirable vehicles to earn more income compared to those with lower-quality vehicles However, income inequality may arise if the market becomes saturated, leading to price competition and decreasing earnings for individual drivers

- Job security: The flexibility of the sharing economy can promote job security for individuals who can supplement their income or work on a part-time basis. Drivers in the ride-sharing industry have the flexibility to work part-time or set their own schedules However, they may face insecurity if there is oversaturation in the market.

- Displacement of traditional service providers: Traditional taxi drivers or transportation companies may face increased competition from ride-sharing platforms, leading to lower demand and potential displacement if they are unable to adapt to changing market dynamics.

- Income inequality: The sharing economy in accommodation can provide opportunities for individuals to earn extra income by renting out their properties. Hosts with properties in prime locations or with unique features may have higher earning potential compared to hosts with less desirable properties However, it may also contribute to income inequality as those with more properties or desirable locations may have a higher earning potential.

- Job security: For individuals who rely on income from renting out their properties, the sharing economy can provide a source of steady income Hosting through accommodation-sharing platforms can provide a steady income source for individuals, although it may not offer the same level of stability and benefits as traditional employment However, fluctuations in demand and competition from other hosts may impact long-term job security.

- Displacement of traditional service providers: Traditional hotels and guesthouses may face increased competition and potential displacement from alternative accommodation platforms It may become challenging for them to compete with the pricing and flexibility offered by sharing economy platforms.

Figure 2.1: Airbnb's cap/valuation and other traditional hotel's cap/valuation

(Source: Yahoo Finance/CB Insights and Equidate Airbnb data as of March 2017)

It is clear that Airbnb’s value is now higher than the market capitalization of any other major hotel chain.

- Income inequality: E-commerce platforms can provide opportunities for individuals and small businesses to reach a wider customer base, potentially increasing their income However, income inequality may arise if larger businesses or established sellers dominate the market, limiting opportunities for smaller participants.

SOLUTIONS FOR SHARING ECONOMY

The government's guidelines for developing the sharing economy

3.1.1 Establishing and molding a comprehensive policy framework for the sharing economy in Vietnam

Several policies and decrees have been implemented by the government in Vietnam to facilitate the development of the sharing economy

After a long time in the drafting stage, the Government issued Decree No. 10/2020/ND-CP (Decree 10) on January 17, 2020, regulating automobile transport business and conditions for conducting automobile transport business, replacing the Decree No 86/2014/ND-CP dated September 10, 2014 (“Decree 86”) On 19 th July

2022, Decree No 47/2022/NĐ-CP on amendments to some articles of Decree No. 10/2020/ND-CP dated January 17, 2022 of the Government of Vietnam on auto transport business and conditions for auto transport business has established The new regulations on automobile transport business helps discriminating automobile transport business providers from providers of application software supporting the transport connection by the factor of directly coordinating the vehicles, drivers or deciding the transport fee or not

Effective January 1, 2022, Vietnam's Decree 85 (passed on September 25, 2021) regulates e-commerce activities and platforms within the country This decree amends Decree 52 and includes provisions for foreign entities engaging in cross-border e-commerce in Vietnam, ensuring fair and transparent operations within the sharing economy By implementing these regulations, the government aims to foster trust and reliability in the e-commerce sector.

On 20 July 2022, Minister of Information and Communications issued Circular No.

10/2022/TT-BTTTT, amending Circular No.13/2018/TT-BTTTT, on the list of cyber-information security products imported under the license and the order of, procedures for and applications for a license to import cyber-information security products The new regulations of Vietnam on shortening the time for re-issuance of the license to import cyber information security products By shortening the time for re-issuance of the license to import these products, the Vietnamese government is taking a proactive step towards facilitating the growth of the sharing economy This move can benefit sharing economy platforms by reducing administrative burdens and streamlining the process of importing essential cyber information security products Efficient and timely access to these products is crucial for sharing economy platforms as they rely heavily on data protection and security to build trust and confidence among users By removing unnecessary delays in the licensing process, the government is supporting the sharing economy ecosystem and enabling platforms to operate more effectively Moreover, these new regulations also highlight the government's recognition of the importance of cybersecurity and data protection in the sharing economy By ensuring that necessary security measures can be promptly implemented through the importation of cyber information security products, the government is bolstering consumer trust and promoting a secure environment for sharing economy transactions.

The government plays a vital role in developing a well-defined and flexible regulatory framework that fosters a supportive environment for sharing economy platforms to operate This includes enacting regulations that prioritize consumer protection, fairness, and compliance Efforts should be made to address matters such as classification, licensing, and permit requirements that are applicable to sharing economy models By establishing a shared understanding of what constitutes sharing economy activities, the government can establish consistent rules and guidelines for the operations of these platforms.

3.1.2 Promoting innovation and sustainable growth in the sharing economy

The government in Vietnam recognizes the importance of promoting innovation and sustainable growth in the sharing economy By implementing policies that support and encourage sharing economy platforms, the government aims to stimulate economic development and provide opportunities for entrepreneurs and businesses operating in this sector Additionally, the government's emphasis on sustainability highlights its commitment to ensuring that the growth of the sharing economy aligns with environmental and social considerations This includes encouraging platforms to adopt environmentally friendly practices and promoting responsible sharing of resources By fostering a favorable policy environment, the government aims to harness the potential of the sharing economy to drive positive economic and social change in Vietnam.

For examples, Decision No 749/QD-TTg dated June 03, 2020 on introducing program for national digital transformation by 2025 with orientations towards 2030. This program aims to propel Vietnam into an era of innovation and sustainable growth, particularly in the sharing economy sector With a clear focus on promoting innovation and sustainable growth, Vietnam is poised to become a regional leader in this emerging field It is important to highlight the various initiatives undertaken by the Vietnamese government to promote innovation in the sharing economy These initiatives include the establishment of innovation hubs and startup incubators, as well as the provision of financial and technical support for entrepreneurs By creating a favorable ecosystem for sharing economy businesses to thrive, Vietnam is encouraging the development of innovative platforms and services that can provide value to its citizens Moreover, with its young and tech-savvy population, the country has a vast pool of potential users and providers in the sharing economy. Moreover, by leveraging digital technologies, the sharing economy has the capacity to optimize resource utilization and reduce waste This, in turn, can contribute to sustainable economic development and environmental conservation Vietnam's commitment to this vision is clearly reflected in Decision No 749/QD-TTg.

Promoting innovation and sustainable growth in the sharing economy across key sectors in Vietnam is crucial for harnessing the full potential of this emerging model Here are some ways to achieve this in each sector:

Encouraging technology adoption and providing support for ride-sharing platforms to invest in innovative solutions such as electric vehicles and smart transportation can promote sustainability and reduce carbon emissions.Additionally, fostering partnerships between traditional taxi services and ride- sharing platforms can leverage their respective strengths and drive further innovation in the industry Policies that promote shared mobility, such as carpooling or ride-sharing, should also be implemented to reduce congestion and optimize resource usage

Promoting sustainable practices among sharing economy platforms is essential Encouraging platforms to adopt eco-friendly amenities, promote energy efficiency, and support local communities can have a positive impact on the environment and drive sustainable tourism Collaboration between sharing economy platforms and local communities is crucial to ensure responsible tourism, preserve local heritage, and distribute economic benefits more evenly Establishing quality standards and guidelines can also ensure consistency and high-quality experiences for guests

(3) E-commerce supporting digital literacy and entrepreneurship skills among individuals participating in the sharing economy is important Education and training programs can enhance their understanding of e-commerce platforms and enable them to leverage them effectively to drive innovation Promoting responsible consumer behavior by raising awareness about the environmental and social impact of purchasing decisions is crucial Sustainable practices like eco-friendly packaging, ethical sourcing, and fair trade should be encouraged Establishing innovation hubs and incubators can support startups and entrepreneurs, providing them with mentorship, funding, and resources for sustainable growth

To foster sustainable food systems, partnerships between sharing economy platforms and local actors (farmers, suppliers, artisans) are crucial These platforms connect home cooks and vendors, fostering knowledge exchange on sustainable cooking and waste management Moreover, by showcasing local cuisines, food-sharing platforms promote cultural heritage and facilitate cultural exchange.

Promoting skills development is key Initiatives that provide training and upskilling opportunities for individuals participating in sharing economy professional services can enhance their expertise and drive innovation Platforms or events that encourage collaboration and networking among professionals across different fields foster a sense of community and enable cross-disciplinary innovation Clear guidelines and regulations should be established to balance consumer protection, professional standards, and innovation

In conclusion, the growth of the sharing economy can also lead to job creation,income redistribution, and improved access to goods and services for underserved communities By fostering a supportive environment for sharing economy businesses, Vietnam can harness the full potential of this sector to drive positive societal change By implementing these strategies in each sector, Vietnam can promote innovation and sustainable growth in the sharing economy This will enable the country to harness the full potential of this emerging economic model while addressing environmental, social, and economic challenges With the right policies and support, the country has the potential to become a regional leader in the dynamic and transformative sector.

Some solutions for sharing economy development in Vietnam

3.2.1 Building adequate framework for sharing economy

Vietnamese regulators can explore innovative approaches to regulate the sharing economy, such as creating new legal frameworks specifically designed for sharing economy activities This would include defining clear categories for different sharing models and determining their specific regulatory requirements.

For regulatory updates: Update the Law on Investment to include provisions that recognize and regulate sharing economy activities, such as peer-to-peer accommodations, ride-sharing services, and food delivery platforms Amend the Law on Enterprises to accommodate new business models that operate in the sharing economy, such as collaborative consumption platforms and service aggregators It is crucial to establish more definitive criteria for determining the employment relationship regulated under labor law.

For classification and definitions: Establish specific categories for different sharing economy models, such as home-sharing, car-sharing, and crowdsourced delivery services Clearly define the activities and responsibilities of sharing economy platforms, participants, and users to ensure proper regulation and oversight.

To optimize taxation and revenue collection in the sharing economy, clear guidelines and regulations must be established to define tax obligations for platforms and participants, promoting fairness and transparency Additionally, collaboration between sharing economy platforms and tax authorities is crucial, enabling the sharing of relevant transaction data to facilitate accurate tax assessment and collection, enhancing revenue generation for governments.

For streamlined licensing and permitting process: Develop a simplified licensing process for sharing economy operators, such as a streamlined application procedure and reduced administrative requirements Introduce special permits or licenses tailored to sharing economy activities, ensuring they are affordable and accessible for small-scale operators.

Currently, most financial management state agencies are facing challenges such as: Lack of resources (staff, knowledge, and tools); low financial infrastructure; limited retail financial service market, complexity, and difficulty in balancing key regulatory objectives related to financial inclusion, stability, integrity, customer protection, and competition Therefore, the application of the Sandbox can create a relationship between state management agencies (Banks, Ministry of Finance) and financial service providers in an open and proactive dialogue, creating conditions for management agencies to review and develop policy frameworks and flexible enforcement monitoring.

To build an adequate framework for the sharing economy in Vietnam, specifically focusing on the five key sectors of the sharing economy:

- Encourage the development of ride-sharing platforms for carpooling, allowing individuals to share rides and reduce traffic congestion.

- Facilitate the growth of bike-sharing and scooter-sharing systems to promote sustainable and efficient transportation options in urban areas.

- Foster the adoption of electric and hybrid vehicles to reduce the environmental impact of transportation in the sharing economy.

- Support the growth of home-sharing platforms that connect travelers with hosts who are willing to rent out their spare rooms or properties.

- Collaborate with local authorities to ensure compliance with regulations and taxation for short-term rentals.

- Promote responsible hosting practices that prioritize the safety and comfort of guests and protect the rights of neighboring residents.

- Foster the development of peer-to-peer e-commerce platforms that enable individuals to buy, sell, and trade products with ease.

- Implement secure payment systems and buyer/seller protection mechanisms to build trust within the sharing economy.

- Encourage sustainable practices by promoting the resale and reuse of goods to reduce waste and promote a circular economy.

- Support initiatives that connect home cooks with individuals seeking unique dining experiences through home-based dining platforms.

- Promote the sharing of surplus food through food-sharing platforms to reduce food waste and address food insecurity.

- Ensure compliance with health and safety regulations to protect the well- being of consumers.

- Facilitate platforms that connect freelancers and independent professionals with clients seeking specific services.

- Encourage collaboration and knowledge sharing among professionals within the sharing economy to foster growth and innovation.

- Create mechanisms for dispute resolution and quality assurance to maintain the integrity of professional services

Maximize the utilization of resources while ensuring appropriate standards for each field, business sector, and service provider must take responsibility to meet the set standards Therefore, in order to fully realize the benefits of the sharing economy model, the government needs to have policies that promote the sharing economy model by relaxing traditional business conditions (applicable to both traditional and sharing economy sectors) At the same time, strengthen control and management of the sharing economy model in service provision to gradually achieve fairness between tradition and technology, and enhance competitiveness.

In order to clarify the responsibilities between parties in the regulatory frameworks of the sharing economy in Vietnam, several solutions can be considered:

- Establish clear and comprehensive laws and regulations that address the different aspects of sharing economy platforms These regulations should define the roles, rights, and responsibilities of each party involved, including the platform operator, service provider, and users.

To enhance accountability and ensure compliance within the sharing economy, a licensing or registration system should be implemented for both platforms and service providers This regulatory framework would mandate adherence to specific standards and requirements, empowering authorities to monitor and enforce regulatory adherence.

In state management, there is a need to change mindset, embrace new ideas, and allow for the experimentation of pioneering models, while boldly removing inappropriate legal barriers However, it is not necessary to establish specific laws regulating the sharing economy model The Vietnamese government can undertake a comprehensive review of existing regulations, such as the Law on Investment and the Law on Enterprises This review should focus on identifying gaps and inconsistencies that hinder the incorporation of sharing economy activities

To encourage and manage the development of sharing economy activities, it is necessary to enhance the management capacity of the State apparatus and innovate state management by fostering coordination among ministries and sectors in operational management, administration, and information sharing There should be common standards for data collection and processing to enable connectivity, storage, and analysis of information as a basis for formulating appropriate policies in an environment where technology blurs boundaries between sectors and industries Promoting the construction of an e-government in the 2020-2025 period is essential.

3.2.2 Ensuring consumer trust and safety for sharing economy

Ensure consumer protection: Establish robust consumer protection measures to safeguard the rights and interests of consumers in the sharing economy Develop regulations that emphasize transparency, trust, and accountability, ensuring fair treatment, quality standards, and effective dispute resolution mechanisms for sharing economy transactions Emphasizing consumer protection measures ensures that consumers in the sharing economy are fairly treated and have recourse in case of disputes It builds trust and confidence in sharing economy platforms and encourages wider adoption, benefiting both consumers and sharing economy operators.

Ensure inspection, examination, and information security on the network environment In the context of rapidly increasing economic activities, information security needs to be guaranteed Specifically, there must be policies guiding individuals and organizations, both domestic and foreign, to be responsible for information security Do not provide information to third parties unless requested by authorized state management agencies and permitted by the information owner; propagate the obligation and responsibility for ensuring the security of personal information It is necessary to establish mechanisms for economic entities involved in sharing activities to control the use of information from platforms, businesses using personal data, and their organizations in accordance with agreed upon terms between parties.

To foster consumer trust and safety in Vietnam's sharing economy, specific measures are necessary These include clearly defining the duties of service providers, such as upholding service safety and quality, adhering to regulations, and providing accurate user information These responsibilities are particularly crucial in five key sectors of the Vietnamese sharing economy.

- Driver Screening: Ride-hailing platforms like Grab, Gojek and GoViet can implement strict background checks, driver training programs, and require valid driver's licenses from all their drivers.

- Vehicle Inspections: Government authorities can conduct regular inspections of vehicles used for ride-sharing services to ensure that they meet safety standards.

- Verification Processes: Home-sharing platforms like Airbnb can implement identity verification and host verification processes to establish trust between hosts and guests.

- Transparent Reviews: Guest reviews and ratings on platforms like Luxstay can provide valuable feedback to future guests, ensuring transparency.

- Secure Payment Systems: Leading e-commerce platforms in Vietnam like Shopee and Tiki can implement secure payment gateways, encrypted transactions, and multi-factor authentication to protect consumers' financial information.

- Verified Sellers: Platforms like Lazada and Sendo can implement verified seller programs, where sellers' identities and products are validated to protect consumers from counterfeit goods.

- Food Safety Regulations: The Vietnam Food Administration can enforce strict food safety regulations and conduct regular inspections of traditional restaurants and food delivery platforms like Grabfood and Baemin to ensure compliance.

- Transparent Vendor Information: Food delivery platforms can display detailed vendor information, such as hygiene ratings, certifications, and customer reviews, to help consumers make informed choices.