Over the past two weeks, Vietnamese consumers have easily come across advertisements for Chinese e-commerce platform Temu, which offers low-priced products and discounts of up to 90%, while the platform has only not yet obtained a license to operate in Vietnam.

The Vietnam E-Commerce and Digital Economy Agency under the Ministry of Industry and Trade informed that it only received Temu’s license application on October 24.

In other words, Temu has been selling goods in Vietnam without a license since the beginning of the month.

Temu is a subsidiary of China’s PDD Holdings Group, one of the world’s leading retail groups.

It followed its predecessors like Taobao, 1688 and Shein to conquer the Vietnamese market.

Such a large e-commerce platform operating publicly in Vietnam without a license is a matter of concern.

Tran Van Lam, a member of the National Assembly’s Finance and Budget Committee, said the problem demonstrates flaws in management and law enforcement.

Regulations on the management of e-commerce platforms are sufficient. Therefore, it is impossible for foreign companies to enter Vietnam and operate e-commerce platforms without announcement or business registration, Lam noted.

This is a management problem that needs to be resolved, the official added.

Vietnam has tools, including technologies, to inspect cross-border e-commerce platforms to prevent illegal operation of websites and platforms in the country, according to Lam.

Tran Hoang Ngan, deputy of the National Assembly of Ho Chi Minh City, expressed support for cross-border e-commerce platforms, but expressed concerns over the loose management of foreign e-commerce platforms and their illegal operations.

If they have not yet registered their businesses in Vietnam and do not pay their taxes, the fairness of the business world will suffer, affecting local small and medium-sized businesses.

It is necessary to strengthen inspections to prevent trade fraud and tax evasion and ensure fairness and transparency.

Such channels will put domestic small and medium-sized businesses at a disadvantage, and these channels therefore need to be closely controlled, Ngan suggested.

Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said Tuoi Tre (Youth) that the ministry had instructed the relevant units to examine the operation of Temu in Vietnam.

The ministry manages all imported goods to protect locally produced products.

For modern distribution channels, especially e-commerce platforms, special policies are required.

Faced with the complex development of cross-border e-commerce platforms, the Ministry of Industry and Trade has resorted to various management solutions, including submitting a draft plan to intensify e-commerce management.

In particular, the ministry proposed developing specialized laws and changing regulations on tax exemptions for goods imported via express delivery services.

The ministry asked Vietnam’s Directorate of Market Supervision to coordinate with the General Department of Vietnam Customs to closely monitor goods on cross-border e-commerce platforms.

The Vietnam Competition Commission is responsible for protecting consumers and informing them about the risks of cross-border online shopping.

The Ministry of Industry and Trade will propose solutions to supervise goods on e-commerce platforms that do not comply with Vietnamese law.

Temu is now present in 78 countries and territories.

Although Temu has not yet officially announced its entry into the Vietnamese market, local consumers can download the Temu app, purchase products and make payments.

Starting from nothing in early September 2022, Temu’s monthly gross merchandise value has soared to some $4 billion by mid-2024.

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