Vietnam has temporarily halted the operations of the Chinese e-commerce platform Temu after the company failed to meet a government-imposed deadline for registering its services.
The Ministry of Industry and Trade had issued a directive in November requiring both Temu and fast-fashion retailer Shein to register with the Vietnamese government by November 30. Failure to comply would result in penalties, including blocking internet domains and disabling app functionality. This directive was based on trade regulations outlined in the government’s Decree 52 (2013) and Decree 85 (2021).
On December 5, 2024, the ministry announced that Temu’s operations had been suspended due to non-compliance. “Temu operations will be temporarily suspended until it completes the registration procedure,” the ministry stated.
Despite the suspension, Temu has submitted an application to register its e-commerce services in Vietnam, which is currently under review. The ministry did not provide details on how long the suspension would last or the specific steps required for reinstatement.
The disruption was confirmed when Vietnamese-language options disappeared from Temu’s website. In response, Temu issued a statement affirming its collaboration with Vietnam’s E-commerce and Digital Economy Agency and the Ministry of Industry and Trade to complete the registration process. However, the company did not specify when its services would resume in Vietnam.
Shein’s Status in Vietnam
The ministry did not clarify whether Shein had also been impacted by the registration requirements. However, Shein’s Vietnamese website was temporarily unavailable. The company reassured users that it is committed to adhering to local laws and regulations.
“Shein is committed to complying with the laws and regulations of the countries we operate in,” the company stated. It added that customers in Vietnam could still shop via its international platform.
Global Regulatory Challenges for Temu
Temu’s regulatory hurdles are not limited to Vietnam. In Indonesia, regulators requested Google and Apple to remove Temu’s app from their stores, citing the need to protect local merchants. This aligns with broader efforts to regulate foreign e-commerce platforms dominating local markets.
In Europe, Temu is under investigation by the European Commission for failing to prevent the sale of illegal products. The probe follows Temu’s designation as a “very large online platform” under the EU’s Digital Services Act (DSA), subjecting it to stricter oversight.
The investigation will assess whether Temu’s systems effectively prevent “rogue traders” from selling non-compliant goods and whether the platform’s game-like reward features are problematic. Regulators are also scrutinizing its transparency in meeting DSA requirements, including data accessibility for researchers and clarity in recommendation algorithms.
Temu’s ongoing compliance challenges underscore the increasing scrutiny faced by global e-commerce giants as regulators prioritize fair competition and consumer protection.