Chinese online retailer Temu has been instructed to suspend its operations in Vietnam after failing to meet a November deadline for business registration, the Vietnamese trade ministry announced Thursday.
Temu, owned by PDD Holdings, began operating in Vietnam in October but was required to register with authorities by the end of November or face access restrictions to its platforms.
The trade ministry stated, “Temu operation will be temporarily suspended until it completes the registration procedure.” It added that the platform has submitted an application, which is currently under review, but did not specify a timeframe for resuming operations or further requirements.
On Thursday, the Vietnamese language option was removed from Temu’s website when accessed from Vietnam. A notification on the site stated, “Temu is working with the Vietnam E-commerce and Digital Economy Agency and the Ministry of Industry and Trade to register its provision of e-commerce services in Vietnam.”
Temu confirmed it had submitted all required registration documents but did not provide a timeline for resuming operations.
The Vietnamese trade ministry has raised concerns over the impact of foreign e-commerce platforms, including Temu, on local markets due to their pricing strategies. The ministry has also expressed concerns about the sale of counterfeit goods.
In Indonesia, Temu has faced regulatory challenges, with authorities requesting Google and Apple to block the platform to protect small merchants.
Meanwhile, Vietnam’s parliament recently approved tax law amendments requiring foreign e-commerce platforms to pay value-added tax (VAT) and called for the elimination of tax exemptions on low-cost imported goods. The finance ministry has begun procedures to end the tax break, which currently applies to goods valued at under 1 million dong ($40).
The change is expected to affect foreign-dominated e-commerce platforms, which have benefited from the VAT exemption since 2010.
