Home Money & Business Business Vietnam halts operations of Chinese e-commerce platform Temu

Vietnam halts operations of Chinese e-commerce platform Temu

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Vietnam halts operations of Chinese e-commerce platform Temu

HANOI, Vietnam — Vietnam has put a halt to the operations of the Chinese online shopping platform Temu due to its failure to meet a government deadline for company registration, which was set for the end of November.

The future of Temu, which is a subsidiary of the Chinese e-commerce firm Pinduoduo, remains uncertain as it awaits potential approval to resume operations contingent upon completing the required registration. The government’s decision to suspend Temu’s activities follows concerns regarding the legitimacy of its exceptionally low-priced products and the negative effects they may have on local Vietnamese manufacturers.

As of Thursday, Temu announced that it was in communication with the Vietnam E-commerce and Digital Economy Agency as well as the Ministry of Industry and Trade to fulfill its registration requirements, and it has submitted the necessary documentation.

Temu entered the Vietnamese market in October and quickly gained attention with significant discounts and free shipping offers. The government had issued prior warnings indicating that failure to register by the specified deadline could lead to the blocking of Temu’s app and website, as reported by the official Vietnam News Agency referencing the Ministry of Industry and Trade.

On Thursday, the Vietnamese language options were removed from Temu’s platform. A notice was displayed on its site indicating that the company was actively collaborating “with the Vietnam E-commerce and Digital Economy Agency and the Ministry of Industry and Trade to register its e-commerce services in Vietnam.”

Additionally, Temu is currently under investigation in Europe for potentially allowing the sale of illegal items on its platform.