Vietnam has suspended the operations of Chinese online retailer Temu after the company failed to meet a government-imposed deadline for registration by the end of November, The Associated Press reports.
The future of Temu’s operations in the country remains uncertain, even if it completes the registration process.
Temu, a subsidiary of the Chinese e-commerce giant Pinduoduo, launched in Vietnam in October, quickly gaining attention with its aggressively discounted prices and free shipping offers. However, this rapid expansion raised concerns within the Vietnamese government regarding the authenticity of Temu’s products and the potential negative impact on domestic manufacturers.
The Ministry of Industry and Trade had previously warned Temu that its app and website would be blocked if registration wasn’t completed by the November deadline, according to the official Vietnam News Agency. The ministry cited concerns about the extremely low prices offered by Temu, suggesting potential issues with product quality and fair competition.
In a statement released Thursday, Temu confirmed it was working to rectify the situation, claiming to have submitted the necessary documents to the Vietnam E-commerce and Digital Economy Agency and the Ministry of Industry and Trade. However, the suspension remains in effect.
The company’s website now lacks Vietnamese language options, displaying a notification explaining the ongoing registration process with Vietnamese authorities.
This action by the Vietnamese government comes as Temu faces scrutiny in Europe, where investigations are underway concerning allegations that the company is failing to prevent the sale of illegal goods on its platform.
