HANOI, Vietnam (AP) — Vietnam has suspended the operations of Chinese online retailer Temu after it failed to meet a government deadline to register the company by the end of November. The suspension raises questions about the future of Temu, a unit of Chinese e-commerce giant Pinduoduo, in the Vietnamese market.
The Ministry of Industry and Trade in Vietnam expressed concerns about the authenticity of Temu's products, particularly their low prices, and the potential impact on local manufacturers. Temu had entered the Vietnamese market in October, offering significant discounts and free shipping to attract customers.
Despite submitting required documents to register its e-commerce services, Temu's operations remain suspended. The company is collaborating with the Vietnam E-commerce and Digital Economy Agency and the Ministry of Industry and Trade to address the registration issue.
The Vietnamese government had warned Temu that failure to register before the end of November would result in the blocking of its app and website. As a consequence, Vietnamese language options were removed from Temu's website, signaling the ongoing regulatory challenges faced by the online retailer.
Furthermore, Temu is facing scrutiny in Europe over suspicions of inadequate measures to prevent the sale of illegal products on its platform. The investigation in Europe adds to the regulatory hurdles confronting Temu as it navigates compliance requirements in multiple markets.
