Vietnam’s government has announced that Chinese online retail platforms Shein and Temu must register with local authorities by the end of November or face potential blocks on their internet domains and apps. This mandate reflects Vietnam’s concern over the platforms’ deep discounting practices, which local businesses argue undermine the domestic market. The Ministry of Industry and Trade is also addressing concerns around the sale of counterfeit goods on these sites.
Deputy Trade Minister Nguyen Hoang Long stated that the ministry has been working with both companies regarding their licensing obligations. He warned that if Shein and Temu fail to comply, technical measures, including blocking applications and domains, will be enforced in coordination with relevant agencies.
Shein, a popular fast-fashion retailer, has been selling in Vietnam for two years, while Temu, owned by Chinese e-commerce firm PDD Holdings, launched operations in the country only last month. Shein has responded by expressing commitment to adhering to Vietnamese regulations, working closely with local authorities to ensure compliance. Temu, however, has not yet commented on the issue.
The finance ministry has noted that items imported through e-commerce platforms can currently receive a value-added tax exemption for goods up to 1 million dong (around $40). However, officials are considering ending this exemption, given that many imported items benefit from the tax break.
Beyond Vietnam, Shein and Temu face growing regulatory challenges elsewhere. In October, Indonesia requested that Apple and Google remove Temu from their app stores to shield local merchants from the competition of low-cost imports.
Vietnam’s e-commerce sector, now valued at $22 billion, ranks as Southeast Asia’s third-largest market after Indonesia and Thailand, according to a recent report by Google, Temasek, and Bain & Company. Competing e-commerce platforms in Vietnam include Shopee, Lazada, Tiki, and Sendo, indicating a dynamic but increasingly regulated market environment.
