Vietnam warns Temu: Register with govt or get blocked

WEB DESK: Vietnam has said that Chinese online retailers Shein and Temu must register with the government by the end of November or their internet domains and apps will be blocked in the country.

According to Reuters, the government and local businesses have raised concerns about the impact of these platforms on local markets, particularly due to their heavy discounting.

The Ministry of Industry and Trade also expressed worries about the potential sale of counterfeit goods on these sites.

During a weekend government meeting, Deputy Trade Minister Nguyen Hoang Long confirmed that the ministry has been working with both Shein and Temu regarding the licensing requirements.

Long stated, “If these platforms do not comply after our notification, we will coordinate with relevant agencies to take technical measures, such as blocking their applications and domains.”

Shein and Temu have not yet responded to requests for comment. Fast-fashion retailer Shein has been operating in Vietnam for at least two years while Temu, which is owned by Chinese e-commerce giant PDD Holdings, only began serving Vietnamese customers last month.

Currently, Vietnam allows imported goods worth up to 1 million dong ($40) to be exempt from value-added tax (VAT).

However, the finance ministry is reviewing this tax break, noting that most items benefiting from it are imported through e-commerce platforms.

Both Temu and Shein are also facing increased scrutiny in other countries. Last month, Indonesia asked Apple and Google to remove Temu from their app stores, aiming to protect small businesses from being undercut by ultra-cheap goods.

Vietnam’s e-commerce sector has grown by 18 percent this year, reaching a value of $22 billion, making it the third-largest in Southeast Asia, behind Indonesia and Thailand, according to a report by Google, Temasek, and Bain & Company.

Other platforms operating in Vietnam include Singapore’s Shopee, Alibaba-backed Lazada, and local companies Tiki and Sendo.

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