Photo: Koshiro K / Shutterstock.com
Chinese online retailer Temu, owned by PDD Holdings, has been ordered to halt its operations in Vietnam. According to Vietnam’s Ministry of Industry and Trade (MOIT), this decision follows the platform’s failure to meet a mandated end-November deadline for business regulation.
Temu, which began offering its services in Vietnam in October 2024, was required to register with Vietnamese authorities by November 30 to operate legally. The MOIT confirmed to Reuters that Temu’s operations would remain suspended until the registration process is completed.
The platform has submitted the necessary documents for review, but the ministry has not provided details on how long the suspension might last or outlined specific next steps for Temu to resume its activities.
A statement on Temu’s website, accessed from Vietnam, acknowledged the ongoing situation, noting that the company is working closely with Vietnamese authorities to complete the registration. However, the Vietnamese language option on its platform has been temporarily disabled.
Temu’s entry into Vietnam, characterised by aggressive discounting strategies, has raised concerns among local businesses and trade officials. These concerns centre around the platform’s potential to disrupt the domestic market and the possible sale of counterfeit goods.
This is not the first regulatory challenge Temu has faced in the region; Indonesian regulators recently requested Google and Apple to remove the app from their stores to protect local merchants.
Compounding challenges for foreign e-commerce platforms like Temu, Vietnam’s parliament has recently passed amendments to tax laws. These changes require local operators of foreign platforms to pay value-added tax (VAT) and propose the removal of tax exemptions for low-cost imported goods.
Since 2010, goods valued under 1 million dong ($40) have been exempt from duties. The finance ministry has begun implementing the scrapping of this tax break, signalling stricter regulatory scrutiny on international e-commerce giants.
While Temu has expressed its commitment to meeting Vietnam’s regulatory requirements, the timeline for its return to full operations remains uncertain.
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