The logo of Chinese e-commerce platforms Shein and Temu are displayed . Photo by of Reuters
The Ministry of Industry and Trade has warned Chinese e-commerce giant Temu to comply with the law or face the possibility of being blocked.
The Vietnam e-Commerce and Digital Economy Agency has been instructed to contact Temu by the end of this month to issue the warning, Minister of Industry and Trade Nguyen Hong Dien said in a recent order.
If the company does not cooperate, the ministry and the Ministry of Information and Communications will block its platform.
The law requires cross-border e-commerce platforms to register in the country if it has a Vietnamese domain, uses Vietnamese as a display language or has 100,000 transactions a year in Vietnam.
Temu began allowing Vietnamese consumers to shop on its platform last month but has not registered in the country.
The trade ministry has also urged consumers to take precautions while shopping online, especially on platforms that have not registered in Vietnam.
Deputy Minister of Industry and Trade Ho Duc Phoc said earlier that Temu should pay taxes just like U.S. companies Google and Facebook.
Singapore-based Shopee is the biggest e-commerce platform in Vietnam with a 71% market share in the second quarter, according to e-commerce intelligence firm YouNet ECI.
Other notable platforms include TikTok Shop, Lazada and Tiki.
Comments are closed.