Temu Suspended in Vietnam for Non-Compliance with Registration Laws

Temu Halts Operations in Vietnam

Chinese e-commerce platform Temu, famous for its budget-friendly prices, has been forced to suspend services in Vietnam. This development comes after the app failed to meet a mandatory registration deadline with the Ministry of Industry and Trade by the end of November, according to state media reports.

Goods ordered through Temu are no longer being cleared at Vietnamese customs, making it uncertain when or if the app will resume operations in the country.

Changes to the App Interface

Following the suspension, Temu removed Vietnamese as a language option from its interface. Users in Vietnam can now only select English, Chinese, or French as their app languages.

This decision highlights Temu's halted services in Vietnam and its ongoing issues with compliance.

Concerns Over Low Prices and Domestic Impact

The Vietnamese Ministry of Industry and Trade had previously expressed concerns about the app’s pricing model. Since its launch in Vietnam in October, Temu attracted consumers with discounts of up to 90% and free shipping.

However, the ministry raised alarms about these “unusually low prices” and their potential negative effects on Vietnamese producers.

Additionally, the ministry questioned the authenticity of the goods sold on the platform, stating that such pricing strategies could disrupt domestic markets and unfairly impact local businesses.

Temu’s Response to the Suspension

A spokesperson for Temu told AFP that the company is working closely with Vietnamese authorities to resolve the issue. “We have submitted all required documents for the registration,” the spokesperson stated.

While this indicates Temu’s intention to comply with local regulations, it remains unclear when its operations might resume.

Global Scrutiny of Temu’s Practices

Temu’s challenges in Vietnam are not isolated. The app, which has gained significant traction in Europe and other markets, is under investigation in multiple regions:

• European Union: The EU has launched a probe into Temu, focusing on concerns that the platform is not adequately addressing the sale of illegal products.
• South Korea: In April, regulators began investigating Temu for alleged unfair practices, including false advertising and subpar product quality.

These international inquiries add to the pressure on Temu to enhance transparency and improve its operations globally.

Vietnam’s Growing E-Commerce Oversight

The suspension of Temu reflects Vietnam's increasing focus on regulating its e-commerce sector. Authorities are keen to ensure that foreign platforms comply with local laws and do not harm domestic businesses.

Vietnamese regulators have also raised questions about the authenticity of products sold on platforms like Temu and their compliance with consumer protection standards.

Future of Temu in Vietnam

As Temu works to register with Vietnamese authorities, its future in the country remains uncertain. While the app’s low prices and aggressive marketing strategies have appealed to consumers, they have also drawn scrutiny from regulators worldwide.

For now, Vietnamese consumers will need to explore alternative e-commerce options, while Temu navigates the complexities of compliance and market entry.

Conclusion:
Temu's suspension in Vietnam serves as a reminder of the challenges faced by global e-commerce platforms in adhering to local regulations. As the platform addresses concerns and works towards compliance, the situation highlights the delicate balance between innovation and regulation in today’s digital economy.