HANOI – The Vietnamese government has issued a deadline for the Chinese online retailers Shein and Temu to register with authorities or face having their internet domains and apps blocked in the country.
According to the Ministry of Industry and Trade, the move is aimed at addressing concerns over the impact of these deep-discounting Chinese platforms on local Vietnamese markets and the potential sale of counterfeit goods.
“After the ministry’s notification, if these platforms do not comply, the Ministry of Industry and Trade will coordinate with relevant agencies to implement technical measures such as blocking applications and domains,” said Nguyen Hoang Long, Vietnam’s deputy trade minister.
Shein, the fast-fashion e-commerce giant, has been operating in Vietnam for at least two years. Temu, owned by Chinese e-commerce firm PDD Holdings, only started allowing Vietnamese users to shop on its platform last month.
In a statement, Shein said it is “committed to complying with Vietnam’s laws and regulations” and is “working closely with local authorities on this matter.” Temu did not immediately respond to a request for comment.
Vietnam’s E-commerce Landscape Vietnam’s e-commerce market has seen rapid growth, reaching an estimated value of $22 billion in 2022, making it the third-largest in Southeast Asia behind Indonesia and Thailand.
Other major players in the Vietnamese e-commerce space include Singaporean platform Shopee, Alibaba-backed Lazada, and domestic companies Tiki and Sendo.
The Vietnamese government and local businesses have raised concerns about the impact of deep discounting by Chinese platforms like Shein and Temu on traditional retail. There are also worries about the potential sale of counterfeit goods.
As a result, the finance ministry is considering terminating a tax exemption on imported goods valued under $40, which officials say has primarily benefited e-commerce imports.
Regulatory Challenges Elsewhere Shein and Temu are also facing increased scrutiny and legal challenges in other markets. Last month, Indonesia requested that Apple and Google block Temu from their app stores to protect small merchants.
The deadline for Shein and Temu to register with Vietnamese authorities is set for the end of November. Failure to comply could result in their platforms being blocked in the country.
This move highlights the growing regulatory challenges Chinese e-commerce firms are facing as they expand globally, with host countries seeking to balance the opportunities of cross-border online retail with protecting domestic industries and consumers.
Source: Reuters
