Vietnam has issued a firm ultimatum to Chinese e-commerce giants Shein and Temu: Register by the end of November or risk a nationwide block of their platforms starting in December. The Vietnamese government and local businesses raised concerns over the low-cost pricing strategies employed by Shein and Temu, which they claim threaten domestic retailers and encourage the influx of counterfeit goods.
Vietnam Pressures Shein and Temu Over Low Prices and Counterfeit Goods
During a recent government meeting, Deputy Trade Minister Nguyen Hoong Long highlighted the Ministry of Industry and Trade’s discussions with Shein and Temu, emphasizing the need for compliance with Vietnam’s licensing and regulatory standards. According to Reuters, these platforms have rapidly gained popularity by offering low-priced clothing and consumer goods, undercutting local vendors who struggle to match the aggressive discounts.
Concerns also extend to the authenticity of goods sold on these foreign platforms. Vietnamese authorities have warned that Shein and Temu’s expansive catalogs increase the risk of counterfeit products infiltrating the market, eroding consumer trust and undermining local businesses. The Ministry of Industry and Trade has confirmed it will take measures, including blocking apps and domains, should these platforms fail to register as required.
E-commerce Challenges: Vietnam Follows Regional Trend in Regulating Foreign Platforms
Vietnam’s issues with Shein and Temu mirror a broader regional trend of scrutinizing foreign e-commerce platforms. Earlier, Indonesia requested tech giants Apple and Google remove Temu from their stores, citing harm to local merchants due to Temu’s ultra-low prices. This regional pushback reflects a growing sentiment against Chinese e-commerce platforms disrupting Southeast Asian markets.
Vietnam’s e-commerce market, valued at $22 billion and ranked third in Southeast Asia, continues to grow, attracting both domestic and international players. Vietnam is considering revoking the VAT exemption on imports under $40 to support local businesses. This change could help level the competitive field, balancing the interests of local vendors against those of global e-commerce platforms.
Jaja has a degree in journalism and took classes in international law and business communication. Her career spans roles at prominent international media outlets, including International Business Times, Celebeat and Delightful Philippines. As a news editor, Jaja covered a wide range of beats, including legal, business, economy, cryptocurrency, personal finance, gaming, technology, and entertainment.