Vietnam has temporarily suspended the operations of Temu, a Chinese eCommerce platform after it failed to meet the country’s regulatory deadline for registration.
The Ministry of Industry and Trade issued a directive last month requiring Temu, along with fellow Chinese retailer Shein, to register with the government by November 30, 2024.
This was in line with trade regulations outlined in Decree 52 (2013) and Decree 85 (2021), which mandate that foreign eCommerce platforms operating in Vietnam comply with certain registration processes.
On 5th December, the Ministry announced that Temu’s operations would be suspended until the platform finalised its registration. The ministry clarified that while Temu had submitted an application, it is still under review.
However, it did not specify a timeline for when the suspension might be lifted or outline what steps Temu needs to take for the resumption of services.
In an attempt to address the situation, Temu confirmed that it is working with the Vietnam E-commerce and Digital Economy Agency, as well as the Ministry of Industry and Trade, to complete the necessary registration.
However, the company has not disclosed when it expects to be fully operational again in Vietnam. Meanwhile, users attempting to access Temu’s website in Vietnam have noted the removal of Vietnamese-language options, further confirming the operational disruption.
While Shein’s website was also unavailable in Vietnam, it is not yet known if the platform has been subject to the same suspension. Shein stated that it is working with the Vietnamese authorities to ensure compliance with local regulations and assured customers that they could still shop through its international platform.
This suspension comes as both the Vietnamese government and local businesses are concerned about the impact of deep discounting by foreign platforms like Temu and Shein. Again, the trade ministry has also spoken about the sale of counterfeit products on these platforms.
Temu has previously faced regulatory issues in other countries, such as Indonesia, where local authorities have called for the app to be removed from app stores to protect local merchants.
In Vietnam, a recent decision by the government has also begun to tackle tax exemptions that have long benefited foreign eCommerce companies.
The finance ministry is in the process of eliminating the VAT exemption on low-cost imported goods, expected to affect the foreign-dominated eCommerce sector in the country.
