Relationship between Data Privacy Regulations and Consumer Trust in E-Commerce Platforms in Vietnam

Abstract

Purpose: The aim of the study was to assess the relationship between data privacy regulations and consumer trust in e-commerce platforms in Vietnam.

Materials and Methods: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries.

Findings: The study found that stringent data privacy regulations positively influence consumer trust in e-commerce platforms. When consumers perceive that their data is adequately protected, they are more likely to trust the platform, resulting in higher confidence levels and increased willingness to engage in online transactions. Moreover, compliance with these regulations can differentiate e-commerce platforms in competitive markets, as consumers tend to prefer platforms that prioritize data privacy and security. This relationship underscores the pivotal role of regulatory frameworks in shaping consumer perceptions and behaviors in the digital marketplace, emphasizing the importance of maintaining robust data protection standards to foster trust and sustainable business relationships.

Implications to Theory, Practice and Policy: Trust theory, regulation theory and technology acceptance model may be used to anchor future studies on assessing the relationship between data privacy regulations and consumer trust in e-commerce platforms in Vietnam. E-commerce platforms should prioritize enhancing data transparency and accountability to build consumer trust. Policymakers should work towards harmonizing international data privacy standards to create a cohesive regulatory environment.