Temu Suspends Operations In Vietnam Over Registration Issues

Shopping app Temu, owned by Chinese e-commerce giant PDD Holdings, has suspended its operations in Vietnam after failing to meet the government’s registration requirements.

State media reported on Thursday that goods ordered through the platform were no longer clearing customs, following a missed end-of-November deadline to register with the Ministry of Industry and Trade.

Vietnamese authorities have expressed concerns over Temu’s “unusually low prices” and their potential impact on local producers.

Despite the setback, a Temu spokesperson told AFP, “We have submitted all required documents for the registration” and are working with authorities to resolve the issue.

Separately, fashion retailer Shein also temporarily suspended its Vietnamese site, citing ongoing registration efforts with the ministry.

Temu, launched in Vietnam in October, quickly gained traction among consumers with discounts of up to 90% and free shipping offers. However, officials questioned the authenticity of products sold and raised concerns about their effects on domestic industries.

Since its global debut in 2022, Temu has rapidly expanded, becoming a top online shopping app in the United States and one of the fastest-growing in Europe.

However, the platform has faced scrutiny, including an EU probe into the sale of illegal products and investigations in South Korea over alleged false advertising and poor product quality.

With Vietnamese removed as an interface language on Temu’s app, it remains unclear when or if the platform will resume operations in the country.

Meanwhile, authorities continue to monitor the compliance of foreign e-commerce platforms entering the Vietnamese market.