Chinese Online Retailer Temu Faces Growing Scrutiny as Vietnam Suspends Its Operations

Temu, which has raised concerns among Vietnamese consumers and regulators, missed the deadline to register with Vietnam’s trade ministry.

Temu, the Chinese e-shopping giant, is facing new regulatory challenges in Vietnam, as authorities suspended its operations on Dec. 5 due to a missed registration deadline.

The Vietnamese trade ministry said in a statement that Temu had submitted an application for registration that is currently under review. Until the agency “completes the registration procedure,” Temu’s operation will be temporarily suspended, it added.

Hanoi’s decision comes as Temu encounters regulatory challenges in other markets while expanding globally. Owned by Chinese e-commerce giant Pingduoduo, Temu has rapidly gained a foothold in the European Union and the United States by offering a wide array of low-priced products primarily sourced from China. Still, this explosive growth has not been without controversy.

Since its launch in the Vietnamese market in October, Temu has sparked concerns among consumers and regulators. Officials raised concerns about the authenticity of the goods listed on the platform, with Nguyen Sinh Nhat Tan, the deputy minister of industry and trade, calling for an investigation into the company’s low-priced products.

Further, Vietnam regulations stipulate that international e-retailers offering services in Vietnamese languages and domains and processing over 100,000 transactions annually must register with its Ministry of Industry and Trade.

During a government meeting last month, Vietnam’s deputy trade minister, Nguyen Hoang Long, said they had requested Temu and its Chinese rival, Shein, to complete the registration by the end of November.

“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,” Long said at the time, adding that his ministry has worked with representatives from the two Chinese companies.

On Dec. 5, the Vietnamese language option was removed from Temu’s website and app, although users in the Southeast Asia nation can still access the platform in other languages, including English and Chinese, according to local media.

A notice on the company’s Vietnamese website states, “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.”

Hanoi’s decision also comes amid Indonesian authorities’ request to block Temu from the Google and Apple app stores, citing the need to protect local small businesses.

Temu’s app is also facing regulatory scrutiny in other markets. In the European Union, regulators are examining risks stemming from the sales of illegal products and Temu’s “potentially addictive” design, including “game-like reward” programs and other issues. If Temu is found in violation of the Digital Services Act, it could face fines of up to 6 percent of its global turnover.

In the United States, Temu has also come under fire due to concerns over intellectual property theft, forced labor, and the risk that personal data collected by the app could end up in the hands of the Chinese regime.

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