Vietnam has suspended the operations of the Chinese language e-commerce platform Temu after the corporate failed to satisfy a authorities deadline to register its companies.
The Ministry of Trade and Commerce issued a directive final month, which required Temu and fellow quick style big Shein to register with the Vietnamese authorities by November 30 or face penalties, together with the blocking of web domains and a halt in the usage of their apps.
The requests had been made primarily based on commerce laws which are specified within the authorities’s Decree 52 from 2013 and Decree 85 from 2021.
The Vietnamese Ministry of Trade and Commerce introduced on fifth December 2024 that it had ordered the suspension of Temu’s operations within the nation as a result of its failure to finish the required registration procedures.
“Temu operations will likely be briefly suspended till it completes the registration process,” the ministry said.
The ministry added that Temu had submitted an utility for e-commerce companies in Vietnam and that it’s at the moment beneath evaluate by the authorities. Nevertheless, it didn’t specify how lengthy the suspension would final or what steps Temu should take for the suspension to be lifted.
When accessing Temu’s web site from Vietnam, Vietnamese-language choices had been not accessible, confirming the disruption. Temu disclosed in an announcement posted on its web site that it’s collaborating with Vietnam’s E-commerce and Digital Financial system Company and the Ministry of Trade and Commerce to finish its registration for offering e-commerce companies within the nation.
“Temu is working with the Vietnam E-commerce and Digital Financial system Company and the Ministry of Trade and Commerce to register its provision of e-commerce companies in Vietnam,” Temu said.
The corporate nonetheless didn’t give a transparent timeline for when its operations will resume in Vietnam.
Shein’s standing in Vietnam
Whereas the Vietnamese authorities didn’t specify whether or not Shein’s operations had been affected by the registration difficulty, its Vietnamese web site was additionally unavailable.
The corporate disclosed that it’s devoted to following the legal guidelines and laws of the international locations the place it operates.
“Shein is dedicated to complying with the legal guidelines and laws of the international locations we function in,” they said
The corporate famous that whereas its Vietnamese web site was briefly down, prospects may nonetheless entry its worldwide platform to buy.
What it is best to know
Temu has confronted comparable regulatory hurdles in Indonesia, the place native regulators have requested that Google and Apple take away the app from their shops to guard native retailers. This comes as a part of broader efforts to manage international e-commerce platforms that dominate the market.
- Temu is beneath investigation by the European Fee over issues that it isn’t successfully stopping the sale of unlawful merchandise. This investigation follows Temu’s inclusion within the checklist of “very massive on-line platforms” beneath the EU’s Digital Companies Act (DSA), which topics platforms to heightened scrutiny.
- The investigation will concentrate on whether or not Temu’s methods are enough in stopping “rogue merchants” from promoting non-compliant items, and it’ll additionally look into the platform’s practices concerning addictive options, akin to game-like reward applications.
Moreover, regulators are reviewing Temu’s compliance with DSA transparency necessities, together with entry to information for researchers and readability on how suggestions are made to customers.
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