Chinese e-commerce platform Temu has been ordered to suspend its operations in Vietnam after missing a key registration deadline, according to reports from Vietnamese state media. The decision follows the company’s failure to meet the end-November deadline set by the Vietnamese government for foreign e-commerce services to officially register their operations in the country.
Temu, owned by Chinese retail giant PDD Holdings, began offering services in Vietnam in October. As part of the regulatory requirements, the company needed to complete registration procedures with the Ministry of Industry and Trade by November 30. Without completing this process, Temu faced the risk of having its internet domains and apps blocked in Vietnam.
The Ministry of Industry and Trade confirmed the suspension in a statement reported by the Vietnam News Agency. “Temu hadn’t completed its registration procedures by the end-November deadline. Therefore, the competent authority has requested that Temu temporarily suspend operations in the country,” the agency said.
As of Thursday, users in Vietnam attempting to access Temu’s website noticed that the Vietnamese language option had been removed. A notification on the site indicated that Temu was working with the Vietnam E-commerce and Digital Economy Agency as well as the Ministry of Industry and Trade to resolve the registration issue. However, there was no information on how long the suspension would last or what actions Temu must take to have it lifted.
The suspension comes at a time when concerns about the impact of foreign e-commerce platforms on local markets are rising in Vietnam. Local businesses have voiced worries about aggressive pricing strategies, with deep discounts from platforms like Temu putting pressure on domestic retailers. Additionally, the Vietnamese government has expressed concerns over the potential sale of counterfeit goods through these platforms.
This latest development coincides with new legislative changes in Vietnam aimed at tightening regulations on foreign e-commerce platforms. The country’s parliament recently approved revisions to a tax law that now requires foreign e-commerce operators to pay value-added tax (VAT) on sales. These changes are seen as a challenge to the foreign-dominated e-commerce sector, which has enjoyed tax exemptions since 2010 on imported goods valued under 1 million dong (approximately $40).
Both Temu and its parent company, PDD Holdings, have yet to comment on the situation.
