Vietnam has ordered Chinese language on-line retailers Temu and Shein to register with the federal government by the top of November. In any other case, the federal government will block their purposes and web domains in Vietnam. The Ministry of Commerce is, amongst different issues, involved concerning the potential sale of counterfeit items.

“If these platforms don’t meet the necessities, the Ministry of Trade and Commerce will coordinate with related authorities to implement technical measures equivalent to blocking purposes and domains,” the Vietnamese ministry mentioned.

Operation on the Vietnamese market

Quick trend retailer Shein has been promoting in Vietnam for greater than two years. Temu, owned by Chinese language e-commerce large PDD Holdings, started providing its items there in October this yr.

Shein states that it sells merchandise on to Vietnamese customers. It additionally says it’s dedicated to complying with Vietnamese legal guidelines and rules and that it’s working carefully with native authorities on the matter. He didn’t touch upon that.

Vietnam permits imported items value as much as a million dong (41.7 euros) to be exempt from worth added tax. The Ministry of Finance mentioned that a lot of the objects that profit from this tax break enter the nation by web gross sales. The Ministry is contemplating canceling this tax aid.

Problematic e-shops

Each Temu and Shein face elevated scrutiny and authorized hassle elsewhere. In October, Indonesia requested Apple and Google to dam Tema from their app shops. She needed to guard small merchants from the competitors of very low-cost items. Then in October, the European Fee started to research the Temu firm . He suspects that she is just not attempting arduous sufficient to forestall the sale of unlawful and probably harmful merchandise. This may make the corporate responsible of violating EU regulation.

Vietnam’s e-commerce market grew 18 p.c to $22 billion this yr, in response to a report by Google, Temasek and Bain & Firm launched final week. It’s the third largest market in Southeast Asia after Indonesia and Thailand.

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