Vietnam suspends Temu’s operations for regulatory non-compliance, spotlighting the growing challenges faced by foreign e-commerce platforms in protecting local businesses.
The Vietnamese government has suspended the operations of Temu, a Chinese e-commerce giant, after the company failed to meet a mandatory registration deadline imposed by the Ministry of Industry and Trade. The suspension marks a significant regulatory move as Vietnam tightens its grip on foreign e-commerce platforms to protect domestic businesses and ensure compliance with local laws.
On December 5, 2024, Vietnam’s Ministry of Industry and Trade announced the temporary suspension of the company services, citing its failure to register by the November 30, 2024 deadline. Despite launching in October 2024 with enticing offers like steep discounts and free shipping, Temu quickly came under scrutiny for pricing practices that allegedly threatened local manufacturers
Temu stated it had already submitted its application for registration, which is under review, and expressed its commitment to resolving the issue promptly. Vietnamese users attempting to access the platform reported the removal of Vietnamese-language options, signaling the suspension’s enforcement.
Temu isn’t the only platform under scrutiny. Fast-fashion giant Shein also faces similar regulatory pressures. Although Shein’s website was inaccessible in Vietnam, its operational status remains unclear. Shein has reiterated its commitment to adhering to Vietnam’s laws and regulations while redirecting customers to its global platform for purchases.
The hurdles Temu faces in Vietnam are not isolated. In Indonesia, authorities demanded the app’s removal from Google and Apple stores, citing concerns about the platform’s impact on small merchants.
In Europe, Temu is under investigation by the European Commission for allegedly failing to prevent the sale of illegal products and for non-compliance with the Digital Services Act (DSA) transparency requirements.
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