Jakarta, Indonesia sentinel — The Vietnamese Ministry of Industry and Trade has officially suspended operations of Temu, a Chinese online retailer under Pinduoduo, after the company failed to meet the registration deadline at the end of November 2024. The suspension, reported by ABC News on Tuesday (Dec. 10, 2024), raises questions about Temu’s future in Vietnam and its ability to resume operations once compliance requirements are met.
Concerns About Product Authenticity
The suspension follows Vietnam’s concerns regarding the authenticity of Temu’s heavily discounted products and their potential impact on local producers. Authorities have scrutinized Temu’s aggressive pricing and free shipping offers since its entry into the Vietnamese market in October.
The Ministry had warned that Temu’s website and app would be blocked if the company failed to register before the November deadline. Temu’s Vietnamese language option has since been removed from its website, with a notice indicating its ongoing efforts to comply with local regulations.
Ongoing Registration Efforts
Last Thursday, Temu announced its collaboration with Vietnam’s E-Commerce and Digital Economy Agency and the Ministry of Industry and Trade to complete the registration process. The company stated that it had submitted the required documents but did not provide a timeline for when operations might resume.
Temu is part of the Chinese e-commerce giant Pinduoduo, known for offering low-cost goods. Its swift market penetration strategy through deep discounts has raised eyebrows, particularly in countries concerned about unfair competition and product authenticity.
Broader Implications
This is not the first regulatory hurdle faced by Temu. In Europe, the company is under investigation for allegedly failing to prevent the sale of illegal products. Vietnam’s suspension marks another setback in its global expansion efforts, reflecting rising scrutiny on international e-commerce platforms operating across borders.
The suspension underscores a broader push by Vietnam to regulate foreign e-commerce companies and ensure fair practices that protect local businesses. With its growing digital economy, Vietnam has become an attractive market for global players, making compliance with local laws increasingly crucial.
Indonesia Urges Apple to Block Temu App from the App Store
Next Steps
It remains unclear if Temu will be allowed to resume operations after completing its registration. Vietnam’s Ministry of Industry and Trade has yet to specify the conditions under which the retailer could return to the market. Temu’s ability to navigate these regulatory challenges will likely impact its reputation and operations in other markets as well.
(Becky)
