Temu and Shein suspended in Vietnam for lack of registration

A popular online shopping platform must cut through red tape after Vietnamese authorities suspended their operations in the country. According to the country’s trade ministry, Temu missed its registration deadline.

According to a Vietnamese news agency, Temu was warned it would be blocked if the company didn’t register by the end of November, which is required for companies with more than 100,000 annual sales per year.

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Authorities with the trade ministry said that Temu’s application is being reviewed, but as of Thursday, Dec. 5, all Vietnamese language options were no longer available on the company’s website.

Temu says it is currently working with officials to register its services and restore operations through a notification on its website.

Parent company PDD Holdings launched Temu in Vietnam in October. As the website entered the Vietnamese market, it drew the attention of the deputy trade minister, who called for an investigation into the low-priced products and possible counterfeits.

The cheap goods have risen to popularity since 2022 but have started to face challenges as they enter other markets. In the U.S., a Florida state senator is calling on the Department of Commerce to investigate Temu’s labor practices, privacy of data and the safety of products currently sold by the company.

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Europe has opened its own investigation into the sale of illegal products officials believe are being sold on the platform. The European Commission cited the union’s Digital Services Act, which aims to keep internet users safe. If found guilty, the company could face hefty fines.

Temu’s fast fashion competitor Shein also faces challenges in Vietnam. The website is unavailable to Vietnam shoppers for failure to register its operations as well.