Temu, a Chinese eCommerce platform, has had its operations temporarily banned in Vietnam due to its failure to comply with the country’s registration deadline.
Temu and Shein, another Chinese retailer, were ordered by the Ministry of Industry and Trade last month to register with the government by November 30, 2024. According to Decree 52 (2013) and Decree 85 (2021), which mandate that foreign eCommerce platforms operating in Vietnam adhere to specific registration procedures, this was following trade regulations. The Ministry declared on December 5th that Temu’s activities would be halted until the platform completed its registration.
Although Temu had applied, the ministry explained, it is still being reviewed. It did not, however, detail the procedures Temu must follow to resume services or provide a timeframe for when the suspension would be lifted. Temu acknowledged that it is collaborating with the Ministry of Industry and Trade and the Vietnam E-commerce and Digital Economy Agency to finish the required registration to resolve the issue. The business has not, however, stated when it anticipates returning to full operations in Vietnam.
The operational disturbance has also been confirmed by users in Vietnam who are trying to access Temu’s website and have noticed that Vietnamese-language options have been removed. Although Shein’s website wasn’t accessible in Vietnam either, it’s unclear if the platform has experienced the same suspension.
Continuing, Shein told clients that they could still shop on its global platform and said it is collaborating with Vietnamese authorities to guarantee adherence to local laws. This suspension occurs because local companies and the Vietnamese government are worried about the effects of Temu and Shein’s and other foreign platforms’ steep discounts.
Once more, the trade ministry has addressed the issue of fake goods being sold on these sites. Temu has already encountered regulatory problems in other nations, such as Indonesia, where local officials have demanded that the program be taken down from app stores to safeguard local retailers. A recent government move in Vietnam has also started to address tax advantages that have long favored international e-commerce businesses.
BrandSpur digital news platform reports that the VAT exemption on inexpensive imported goods is being phased out by the finance ministry, which is anticipated to have an impact on the nation’s foreign-dominated eCommerce industry.
