Vietnam has suspended the operations of the Chinese e-commerce platform Temu after the company failed to meet a government deadline to register its services.
The Ministry of Industry and Trade issued a directive last month, which required Temu and fellow fast fashion giant Shein to register with the Vietnamese government by November 30 or face penalties, including the blocking of internet domains and a halt in the use of their apps.
The requests were made based on trade regulations that are specified in the government’s Decree 52 from 2013 and Decree 85 from 2021.
The Vietnamese Ministry of Industry and Trade announced on 5th December 2024 that it had ordered the suspension of Temu’s operations in the country due to its failure to complete the required registration procedures.
“Temu operations will be temporarily suspended until it completes the registration procedure,” the ministry stated.
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The ministry added that Temu had submitted an application for e-commerce services in Vietnam and that it is currently under review by the authorities. However, it did not specify how long the suspension would last or what steps Temu must take for the suspension to be lifted.
When accessing Temu’s website from Vietnam, Vietnamese-language options were no longer available, confirming the disruption. Temu disclosed in a statement posted on its website that it is collaborating with Vietnam’s E-commerce and Digital Economy Agency and the Ministry of Industry and Trade to complete its registration for providing e-commerce services in the country.
“Temu is working with the Vietnam E-commerce and Digital Economy Agency and the Ministry of Industry and Trade to register its provision of e-commerce services in Vietnam,” Temu stated.
The company however did not give a clear timeline for when its operations will resume in Vietnam.
Shein’s status in Vietnam
While the Vietnamese government did not specify whether Shein’s operations were affected by the registration issue, its Vietnamese website was also unavailable.
The company disclosed that it is dedicated to following the laws and regulations of the countries where it operates.
“Shein is committed to complying with the laws and regulations of the countries we operate in,” they stated
The company noted that while its Vietnamese site was temporarily down, customers could still access its international platform to shop.
What you should know
Temu has faced similar regulatory hurdles in Indonesia, where local regulators have requested that Google and Apple remove the app from their stores to protect local merchants. This comes as part of broader efforts to regulate foreign e-commerce platforms that dominate the market.
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Temu is under investigation by the European Commission over concerns that it is not effectively preventing the sale of illegal products. This investigation follows Temu’s inclusion in the list of “very large online platforms” under the EU’s Digital Services Act (DSA), which subjects platforms to heightened scrutiny.
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The investigation will focus on whether Temu’s systems are adequate in preventing “rogue traders” from selling non-compliant goods, and it will also look into the platform’s practices regarding addictive features, such as game-like reward programs.
Additionally, regulators are reviewing Temu’s compliance with DSA transparency requirements, including access to data for researchers and clarity on how recommendations are made to users.
