Temu is required to comply with Vietnamese law.

Shein and Temu logos on computer and phone screens.

Since the beginning of October, Temu, a subsidiary of PDD Holdings (China) – the group that owns the e-commerce site Pinduoduo – has not officially registered to operate in Vietnam, but users can access app stores on their phones to download the app and make purchases and payments on the platform using the Vietnamese version.

Besides Temu, other cross-border e-commerce platforms such as Shein and 1688 have recently started operating in Vietnam but have not yet registered with the Ministry of Industry and Trade .

In a document dated October 26th, Minister of Industry and Trade Nguyen Hong Dien requested the Department of E-commerce and Digital Economy to proactively contact Temu's legal team to demand compliance with Vietnamese law. This must be done immediately within October.

If necessary, coordination with the Ministry of Information and Communications may be undertaken to develop appropriate technical solutions for blocking.

According to regulations, cross-border online retail platforms with Vietnamese domain names, displaying in Vietnamese, or having more than 100,000 transactions per year from Vietnam must register their operations with the Ministry of Industry and Trade.

This aims to ensure compliance with standards on consumer protection, information security, and related legal regulations. However, the Department of E-commerce and Digital Economy acknowledges that some platforms still do not comply with this regulation.

The Ministry of Industry and Trade leaders also requested the Department of E-commerce and Digital Economy to guide consumers to exercise caution when shopping online on e-commerce platforms, including cross-border platforms.

Authorities advise people not to transact with platforms that have not been registered and verified on the E-commerce Management Portal.

The Department of Trade and Digital Economy is also tasked with advising the ministry's leadership to report to the Prime Minister, requesting him to direct the Ministry of Finance to study options for monitoring and managing imported goods circulating through unregistered e-commerce platforms.

The Ministry of Industry and Trade also instructed the General Department of Market Management to coordinate with the General Department of Customs to increase supervision, detection, and handling of warehouses and goods collection points (if any) of unregistered cross-border e-commerce platforms.

In October, the Legal Department reviewed and proposed solutions for handling platforms operating illegally. The Import-Export Department was requested to propose methods for controlling goods imported into Vietnam through e-commerce channels.

In November, the Ministry of Industry and Trade assigned the Domestic Market Department to assess the impact on the domestic market when foreign goods enter the Vietnamese market through cross-border e-commerce platforms.

The Department of Science and Technology must develop standards and regulations for goods under the management of the Ministry of Industry and Trade. This aims to help businesses improve product quality and branding, increase consumer confidence, and enhance the competitiveness of Vietnamese goods.

The business model of e-commerce platforms like Temu is to directly connect buyers with manufacturers. Their factory-direct pricing model helps them attract users seeking affordable products. Initially, goods sold on this platform were heavily advertised, with discounts of up to 70-90%.

During the group discussion on socio-economic issues, many National Assembly deputies expressed concern that the influx of cheap goods from abroad would stifle domestic products and businesses.

Deputy Prime Minister Ho Duc Phoc stated that the cross-border e-commerce platform Temu is also subject to taxation like Google and Facebook. He requested the General Department of Taxation to review Temu's registration, declaration, and tax payment. If Temu fails to pay taxes, the authorities will conduct an inspection and take appropriate action.

TB (summary)

Source: https://baohaiduong.vn/yeu-cau-temu-tuan-thu-phap-luat-viet-nam-396641.html