Vietnamese state media reported on Thursday ( Dec. 5 ) that Chinese online retailer Temu was told to end its operations in Vietnam after it failed to meet the end-November deadline for business registration in the Southeast Asian nation.
Temu, owned by Chinese e-commerce big PDD Holdings, began offering its service in Vietnam in October. The government required registration in order for access to its online domains and apps to be blocked in the nation.
The Ministry of Industry and Trade was cited by Vietnam News Agency as saying that” Temu hadn’t finished its registration procedures by the end-November deadline.”
” So, the competent authority has requested that Temu temporarily halt operations in the country”.
The statement did not specify what Temu needed to do to have the suspension lifted or how long the suspension would become.
On Thursday, Vietnamese speech alternatives had been removed from Temu’s site when it was accessed from Vietnam. According to a alert posted on the website,” Temu is working with the Vietnam E-commerce and Digital Economy Agency and the Ministry of Industry and Trade to record its delivery of e-commerce service in Vietnam.”
Temu and its family company PDD Holdings did not respond to a request for comment right away.
The influence of Chinese online systems on local markets has been raised by the trade government and local businesses, who are concerned about the impact of extensive discounting. The government has also expressed concern about the potential selling of fake goods.
Last week, Vietnam’s parliament approved changes to a tax law that would have required local providers of foreign e-commerce systems to pay value-added tax (VAT ) and demanded that the government scrap a low-cost import products exemption.
The legislation by legislators will be a blow to the country’s heavily populated e-commerce sector, which has benefited from the exemption from VAT and existing regulations since 2010 that mandate imports of goods worth less than$ 1 million ( US$ 40 ) are duty-free.