In the digital era, data transfer in E-commerce plays a pivotal role in connecting businesses with customers. Such a process not only optimizes operations but also enhances user experience. However, it simultaneously raises significant challenges in terms of data security and legal compliance.
In the digital era, data transfer in E-commerce plays a pivotal role in connecting businesses with customers. Such a process not only optimizes operations but also enhances user experience. However, it simultaneously raises significant challenges in terms of data security and legal compliance.
I. Current landscape of data transfer in E-Commerce
In the E-commerce sector, data transfer has become increasingly prevalent, enabling businesses to optimize operations, improve marketing efficiency, and enhance customer experience.
However, many businesses haven’t fully complied with regulations on data protection and privacy yet, leading to risks of data breaches or misuse. Insufficient control mechanisms between data transferors and data recipients also pose challenges, requiring stricter governance to ensure security and transparency.
II. Concept of data transfer in E-Commerce
1. What is data transfer in E-commerce?
Data transfer in E-commerce refers to the act whereby one party (enterprise, organization, or individual) transfers or provides data to another party for purposes such as business operations, management, analysis, or advertising within the E-commerce environment.
The transferred data may include customers’ personal information, transaction data, consumer behavior, product information, or other data related to online business activities.
Such an activity enables businesses to optimize operations, enhance customer experience, and implement effective marketing strategies, while also requiring strict compliance with legal regulations on data protection and privacy. Data transfer may occur internally within an organization or externally between businesses and their partners or third-party service providers.
2. Common forms of data transfer in E-commerce
Pursuant to Article 17 of the Law on Personal Data Protection 2025, the transfer of personal data is permitted and specifically regulated in certain circumstances.
In particular, personal data may be transferred with the consent of the data subject; shared internally within an organization for purposes consistent with the original processing objectives; or transferred in the course of division, separation, merger, consolidation, restructuring, or reorganization of entities, including changes in ownership of State-owned enterprises.
In addition, the law permits data transfer between data controllers, data controllers/processors, and data processors or third parties in accordance with legal provisions; upon request of competent State authorities; and in special cases stipulated under Clause 1, Article 19 of the Law.
3. How does data transfer differ from data sharing?
In E-commerce, data sharing generally refers to the exchange of information between partners, such as customer data or product details (e.g., sellers and E-commerce platforms) for mutual business purposes.
By contrast, data transfer involves a higher legal validity and technical complexity, typically concerning the movement of data, such as electronic invoice data or personal data, from one system to another.
Such activities are subject to stricter compliance requirements, including tax regulations, data protection laws, and ownership and confidentiality obligations, thereby distinguishing data transfer from ordinary data sharing in terms of scope, purpose, and legal responsibility.
III. Legal framework governing data transfer in E-Commerce
1. Conditions for data transfer in E-commerce
In E-commerce, the transfer of consumers’ personal data must be conducted in a transparent, lawful manner and in compliance with privacy rights, as stipulated in Article 29 of the Law on Personal Data Protection 2025.
Accordingly, organizations and individuals engaged in E-commerce may only transfer personal data after clearly informing users of the types of data collected, the purposes and scope of use, and ensuring that the transfer does not exceed the agreed scope.
Data transfer requires explicit consent from data subjects, enabling users to choose out of tracking or data sharing through cookies or similar technologies, and ensuring their rights to access, modify, and delete personal data.
Furthermore, organizations must not unlawfully transfer sensitive data or infringe upon individuals’ privacy, and must implement appropriate technical and organizational measures to safeguard data throughout the transfer process, including cross-border transfers.
Thus, data transfer is deemed lawful only when it satisfies principles of transparency, consent, purpose limitation, and security in accordance with personal data protection laws.
2. Scope of transferable data in e-commerce
The scope of transferable data in E-commerce is broad, including customer data, transaction data, financial data, technological and operational data, and intellectual property, provided that such transfer complies with applicable laws, particularly the Law on Cybersecurity 2018, the Law on Personal Data Protection 2025, and regulations on electronic transactions.
Such transfers must be based on valid legal grounds (e.g., contractual arrangements, compliance with tax or customs obligations, mergers), ensure consent where required, and maintain strict confidentiality, often through electronic data messages such as invoices, contracts, and emails.
3. Legal provisions on inspection and supervision of data recipients
Pursuant to Articles 34 to 38 of the Law on Personal Data Protection 2025, responsibility for inspecting and supervising data recipients is assigned to multiple state authorities.
- The Ministry of Public Security plays a leading role in State management, including law-making, technical standard-setting, inspection, supervision, and international cooperation on personal data protection.
- The Ministry of National Defense coordinates in safeguarding data within national defense activities such as inspecting, supervising, and applying security technology.
- The Ministry of Science and Technology contributes to developing standards and promoting research and application of data protection technologies.
In addition, ministries, ministerial-level agencies, and People’s Committees at all levels are responsible for implementing legal regulations, allocating resources, conducting awareness and training, and coordinating in monitoring and handling violations within their respective jurisdictions, including in E-commerce activities.
4. Data transfer procedures
Under Article 21 of the Law on Personal Data Protection 2025, data processing impact assessments are required as follows:
Data controllers, as well as entities acting as both controllers and processors, must establish and store a data processing impact assessment dossier and submit one (01) original copy to the competent personal data protection authority within 60 days from the commencement of data processing, unless exempted.
Such an assessment is conducted once throughout the processing and must be updated in case of changes in accordance with Article 22 of the Law. Data processors shall establish and store such dossiers in accordance with agreements with data controllers.
The competent authority has the power to review and request amendments or supplements if the dossier is incomplete or non-compliant. Relevant parties must promptly update any changes to submitted dossiers.
Competent State authorities are exempt from such requirements. The Government will issue detailed regulations on dossier components, conditions, procedures, and processes for conducting such assessments.
IV. Questions on data transfer in E-Commerce
1. Is there a limit on the amount of data that can be transferred?
Current law does not impose a specific quantitative limit on data transfer. Instead, it focuses on purpose, scope, and legality.
Accordingly, businesses may transfer data as necessary, provided that:
- The transfer complies with defined purposes and demands business needs;
- Data recipients are clearly identified and bound by confidentiality obligations;
- Data subjects have provided consent where required;
- Compliance with data protection, privacy, storage, and monitoring requirements is ensured.
Thus, while no fixed limit exists, data transfer must be conducted carefully, transparently, and lawfully.
2. Must enterprises obtain consent for each transfer to third parties?
According to Clause 3, Article 9 of the Law on Personal Data Protection 2025 (as guided by Article 6 of Decree No. 356/2025/ND-CP), the consent of the data subject refers to the permission granted by the data subject for the processing of their personal data. Such consent is only valid when it is given voluntarily and based on a clear understanding of the type of data, the purpose of processing, the data controller, as well as the data subject’s rights and obligations.
The consent must be explicitly expressed, capable of being reproduced, printed, or provided in electronic form, and must apply to each specific purpose separately. It must not be subject to any condition requiring agreement to other purposes, and shall remain valid until the data subject modifies such consent or as otherwise provided by law. Silence or failure to respond shall not be deemed as consent. The Government shall provide detailed regulations on the content and forms of consent to ensure uniform implementation and the protection of data subjects’ rights.
Accordingly, businesses are only required to obtain customers’ consent when the purpose, scope, or subjects of data processing differ from the original agreement. If the data is transferred in accordance with the purposes previously consented to by the customer and in compliance with applicable laws, businesses are not required to obtain consent again.
3. Are there security requirements for third-party recipients?
Third-party recipients must implement appropriate security measures to protect personal and business data.
They are required to comply with Article 29 of the Law on Personal Data Protection 2025, including technical safeguards, access control, secure storage, monitoring, and adherence to confidentiality agreements.
4. Is a confidentiality agreement required?
Businesses are strongly advised to execute confidentiality agreements with third parties prior to data transfer. Such agreements should clearly define the scope of data, purposes of use, confidentiality obligations, access rights, and liability for breaches.
5. Can customers request termination of data transfer?
Customers have the right to request cessation of data transfer to third parties under Clause 5, Article 28 of the Law on Personal Data Protection.
This includes the right to withdraw consent, request deletion or destruction of data, and demand termination of transfer, except in cases otherwise provided by law (e.g., national security).
V. Why seek legal advice from NPLaw on data transfer in E-Commerce?
Issues relating to data transfer in e-commerce involve complex legal considerations, including compliance obligations, customer rights, and risk management.
NPLaw – Ngoc Phu Law Company Limited, with a team of experienced lawyers in e-commerce and personal data protection, provides comprehensive advisory services, including contract drafting, confidentiality agreements, and guidance on lawful data transfer practices.
To safeguard your business operations and ensure legal compliance, contact NPLaw for professional and timely support.
The above information is for reference purposes only. For detailed advice tailored to your specific case, please contact NPLaw for prompt assistance.
