Temu and Shein are in trouble

By: Trademagazin Date: 2024. 11. 11. 11:28

The Vietnamese government has set a deadline for online retailers Shein and Temu to register with local authorities – otherwise they face blocking, the reports Reuters.

Chinese platforms are required to submit their license applications by the end of November, otherwise they may make their internet domains and applications unavailable in the country. The decision is based on concerns about the protection of the Vietnamese market and the sale of counterfeit products. Nguyen Hoang Long, deputy minister of commerce, told a cabinet meeting that authorities could introduce technical measures if platforms do not meet regulations.

Vietnam’s e-commerce market has grown by 18% this year and is worth $22 billion, making it the third largest market in the region after Indonesia and Thailand. Shein has been in the country for two years, while Temu, owned by PDD Holdings, launched last month. Shein responded in a statement, emphasizing its commitment to complying with Vietnamese laws and its willingness to cooperate with the authorities.

Vietnam currently offers tax relief for imported products under 1 million dong (approx. HUF 15,000), which are exempt from VAT. However, the finance ministry is considering doing away with it as most of the discounted goods come to the country through e-commerce platforms. Shein and Temu face similar crackdowns around the world: Indonesia, for example, recently asked Apple and Google to remove Temu’s app, protecting local merchants from ultra-cheap Chinese products.