Temu, the Chinese online retail platform owned by PDD Holdings, is making significant strides to register its operations in Vietnam, creating a buzz in the e-commerce sector of the country. Despite not having an official launch, the app is already accessible to Vietnamese consumers, branding itself with the tagline “Shop Like a Billionaire” and offering low-cost goods. This development comes amid stringent requirements under Vietnamese law, which mandate cross-border platforms displaying Vietnamese language or having more than 100,000 annual transactions from Vietnam to register with the authorities. The necessity of registration, however, could present numerous challenges and potential hurdles for Temu in an already competitive market.
Regulatory Requirements and Challenges
To proceed with its operations in Vietnam, Temu has submitted the required registration documents to Vietnam’s Department of E-commerce and Digital Economy, a division of the Ministry of Industry and Trade. The Department affirms that Temu must comply with local regulations, which are aimed at bolstering state management of e-commerce activities. This encompasses the implementation of a specialized e-commerce law to regulate the industry rigorously. The Ministry of Industry and Trade is also working closely with other functional entities, such as the General Department of Market Management and the General Department of Customs, to ensure thorough oversight of cross-border goods. This regulatory environment aims to provide a balanced framework that protects domestic businesses and consumer interests.
Temu’s strategy of offering low-cost goods might face resistance from local products due to the significant competitive pressure it could create. Experts believe that the influx of affordable items on the platform could potentially disrupt the market, making it harder for local businesses to compete. While ensuring consumer rights is a priority, authorities are equally focused on maintaining a level playing field for local enterprises. The National Competition Commission has also been tasked with enhancing consumer awareness and implementing measures to prevent violations in the digital marketplace. This holistic approach highlights the comprehensive efforts being made to oversee cross-border e-commerce more effectively.
Government’s Stance and Future Measures
Temu, a Chinese online retail platform under PDD Holdings, is making notable moves to formalize its operations in Vietnam, generating excitement in the country’s e-commerce sector. Even without an official launch, the Temu app is available to Vietnamese shoppers, enticing them with the slogan “Shop Like a Billionaire” and offering a variety of low-cost goods. This expansion occurs alongside Vietnam’s strict legal requirements, which demand that any cross-border platform displaying Vietnamese language or facilitating more than 100,000 transactions annually in Vietnam must register with local authorities. While this registration process is necessary, it could pose various challenges and obstacles for Temu as it navigates an already highly competitive e-commerce landscape. Successfully completing this registration could allow Temu to establish a stronger presence and compete more effectively, despite the hurdles posed by Vietnam’s regulatory environment and the crowded market.
