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Vietnam’s Ministry of Industry and Trade has announced that Chinese e-commerce platforms Temu and Shein must register as official business entities in Vietnam or face a ban. The ban will affect the companies’ domains and applications and is seen as a way to protect Vietnam’s domestic retail ecosystem.
Shein and Temu offer a wide range of low-cost items that undercut sellers, raising alarms about the long-term impact on Vietnam’s retail sector. There is also apprehension about the potential sale of counterfeit goods, a frequent concern for online marketplaces offering discounted items.
While Shein has been available to Vietnamese consumers for over two years, Temu, backed by Chinese e-commerce conglomerate PDD Holdings, only launched its platform in Vietnam in October.
Despite their rapid rise in popularity, neither platform has yet responded publicly to the new regulatory mandate.
Nguyen Hoang Long, Vietnam’s Deputy Trade Minister, reiterated the government’s stance, explaining that if Shein and Temu fail to register within the allotted timeframe, the Ministry will coordinate with other agencies to take “technical measures” to block their services.
“After the ministry’s notification, if these platforms do not comply, the Ministry of Industry and Trade will coordinate with relevant agencies to implement technical measures such as blocking applications and domains,” Long stated.
In addition, Vietnam’s Finance Ministry has also indicated that it may revise a tax policy that exempts imported goods under 1 million dong (around $40) from a value-added tax. The policy has been instrumental in low-cost imports in the country purchased via Temu and Shein, which, in turn, could disrupt domestic sales.
As reported by Reuters, Vietnam isn’t the only country taking action against Temu and Shein. Indonesia recently requested that major app store operators like Apple and Google remove Temu, citing concerns over its effect on local businesses.
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