Vietnam bans Chinese retailer Temu for failing to register in time

Vietnam has taken action against Chinese online retailer Temu, which failed to meet the government's registration requirements by the end of November 2024. Temu, a subsidiary of the e-commerce giant Pinduoduo, began its operations in Vietnam in October 2024, offering extremely low prices and free shipping to attract customers. However, concerns were raised regarding the authenticity of Temu's products and their potential negative impact on local Vietnamese manufacturers. The Ministry of Industry and Trade issued warnings that Temu's website and app would be blocked if the company did not register by the given deadline. In light of these concerns, Temu has communicated that it is actively working with the Vietnam E-commerce and Digital Economy Agency as well as the Ministry of Industry and Trade to fulfill the registration requirements. They have submitted the necessary documentation to establish their e-commerce services in Vietnam. This response came too late, as the government decided to suspend Temu's operations due to the failure to comply with the registration timeline, which raised doubts about Temu's commitment to the local market. On the day of suspension, changes were made to Temu's website, including the removal of Vietnamese language options, signaling serious implications for user experience in the country. This situation raises questions about the future of Temu in Vietnam, particularly if authorities will allow the company to resume operations once it has completed the registration process. Meanwhile, Temu is also facing scrutiny in Europe over allegations of not adequately preventing the sale of illegal products, further complicating its position in global markets. This suspension is part of a broader trend where countries impose stricter regulations on foreign e-commerce platforms, especially those that deal in low-cost goods that may undermine local industry. As the e-commerce landscape evolves, the Vietnam government appears determined to protect its local businesses and ensure compliance with regulatory requirements. The future of Temu will depend on its ability to navigate these challenges and the regulations imposed by the government, which may significantly affect its operational strategy moving forward.