Vietnam announced plans to take action against Chinese online retailers Shein and Temu by blocking their Internet domains and mobile applications if they fail to register their operations with the Ministry of Industry and Trade by the end of November.
This development arises from concerns over the influence of these Chinese platforms on local markets, particularly regarding their aggressive discounting strategies and the quality of products they offer.
Deputy Trade Minister Nguyen Hoang Long addressed the issue during a government meeting, indicating that discussions with both Shein and Temu regarding their licensing status had already taken place.
“After the ministry’s notification, 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.”
Shein, a fast-fashion retailer, has been active in the Vietnamese market for some time, attracting consumers with its low prices and a wide array of fashion items.
Temu, which is part of the Chinese e-commerce conglomerate PDD Holdings, recently began offering its services to Vietnamese shoppers last month, further intensifying competition in the online retail sector.
The Vietnamese government’s decision underscores a broader effort to regulate foreign e-commerce entities and ensure that they adhere to local laws and trade regulations. This move is seen as a protective measure for domestic businesses that may struggle to compete with the competitive pricing and vast inventory range of these international platforms.
In related news, Thailand should embrace trade opportunities with China rather than follow Indonesia’s lead in banning the Chinese e-commerce platform TEMU, say experts.
In light of Indonesia’s recent decision to prohibit the TEMU application, the International Institute for Trade and Development (ITD) voiced its opposition to a similar move by Thailand. Wimol Pankong, Deputy Director (Academic) of ITD, urged the Thai government to pursue a more balanced approach focused on establishing rigorous standards rather than outright bans.
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