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

Vietnam’s e-commerce and digital economy agency under the Ministry of Industry and Commerce said it had not received Temu’s license application by October 24.

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

Temu is a branch of PDD Holdings in China, a leading retail group in the world.

It followed predecessors such as Taobao, 1688 and Shein to conquer the Vietnamese market.

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

Tran Van Lam, a member of the Finance – Budget Committee of the National Assembly, said the issue shows gaps in management and law enforcement.

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

This is a management issue that needs to be addressed, the official added.

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

Tran Hoang Ngan, a member of the National Assembly from Ho Chi Minh City, expressed his support for cross-border e-commerce platforms, but expressed concern about lax management of foreign e-commerce platforms and their illegal operations .

If they still do not register their operations in Vietnam and do not pay taxes, business fairness will be affected, hitting local small and medium enterprises.

Inspections need to be improved to prevent commercial fraud and tax evasion and to ensure fairness and transparency.

Such channels will disadvantage domestic small and medium-sized enterprises, so such channels must be closely controlled, Ngan suggested.

Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said Your Three Newspaper (Youth) that the ministry tasked the relevant units to review the operation of Temu in Vietnam.

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

Modern distribution channels, especially e-commerce platforms, require special policies.

Amid the complicated development of cross-border e-commerce platforms, the Ministry of Industry and Commerce has used various management solutions, including the submission of a draft plan for the intensification of e-commerce management.

In particular, the ministry proposed the construction of specialized laws and the amendment of regulations on tax exemptions for goods imported through express delivery services.

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

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

The Ministry of Industry and Commerce will propose solutions to monitor goods on e-commerce platforms that do not comply with Vietnam’s 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.

From nothing at the beginning of September 2022, the monthly gross value of Temu goods has grown to about $4 billion in mid-2024.

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