According to state media, on Thursday, the Chinese shopping app Temu was forced to cease its services in Vietnam after failing to register with authorities.
Following Temu’s failure to register with the Ministry of Industry and Trade by the end of November, official media stated that goods ordered on Temu were no longer being cleared through Vietnamese customs.
When and whether Temu would be able to start up again was unclear.
Vietnamese is no longer the interface language on Temu’s app. Users can now choose between Chinese, French, and English.
The declaration follows the ministry’s October concerns about the impact of the remarkably low pricing on Vietnamese producers on the online marketplace.
Temu’s representative informed AFP they were registering their company with Vietnamese authorities.
The spokeswoman said, “We have submitted all required documents for the registration.”
Temu’s affordable prices and all-powerful algorithms have drawn customers from all across the world.
According to state media, it has attracted Vietnamese customers with discounts of up to 90% and free shipping since it started operating in Vietnam in October.
According to the official Vietnam News Agency, however, the ministry voiced concerns over the “unusually low prices of its goods, which may impact domestically produced products” in the month of its introduction.
According to VNA, the ministry stated, “It is unclear whether they (the goods) are authentic. “
Although Temu is one of the applications with the quickest growth rate in Europe, the EU has launched an investigation into the online retailer because it worries that it isn’t doing enough to prevent the sale of illicit goods.
Recall that THE NEWS CHRONICLES previously reported that Temu shook Up Nigeria’s E-Commerce Scene Nigerians were being coerced into using the e-commerce network, which offers quality at “ridiculously low prices,” despite global challenges, whether they were using Facebook, Instagram, or TikTok to catch up with mutuals.
But it’s not just another online store vying for customers’ attention. Temu’s interest in Nigeria suggests that its parent company, PDD Holdings, is changing its strategy to reach one of Africa’s largest consumer markets as external pressure increases.
Nigeria’s e-commerce market is predicted to grow from $8.53 billion in 2024 to $14.92 billion by 2029.
Temu’s engagement in Nigeria can indicate more significant strategy changes as pressure on PDD Holdings overseas increases.
The third quarter of 2023 saw PDD Holdings post sales of 99.35 billion yuan ($13.7 billion, £10.9 billion), below the 102.8 billion yuan analysts had projected.
Its vice president of finance, Jun Liu, openly admitted “intensified competition and ongoing external challenges.”
Due to its cost and convenience, Nigerians—nearly half of the population—are increasingly making purchases online, especially for everyday essentials, despite rising inflation.
In April, South Korean officials began investigating Temu after suspecting the company of unfair business practices, such as deceptive advertising and subpar products.
