Chinese e-commerce platforms Temu and Shein have temporarily halted operations in Vietnam as they work to comply with government requirements to register their services. Vietnam's trade ministry had set a November deadline for the platforms to register or face suspension, citing concerns over deep discounting, potential counterfeit sales, and unfair competition with local businesses.

Temu, owned by PDD Holdings, entered the Vietnamese market in October, while Shein has operated there for over two years. The trade ministry confirmed that Temu’s operations would remain suspended until its registration is approved. Temu stated it had submitted the required documents and is cooperating with Vietnamese authorities, but no timeline has been given for resumption.

Shein’s Vietnamese website was also unavailable, although the company noted that customers could still shop through its international platform. Shein reiterated its commitment to complying with local regulations.

The suspensions come amid broader regulatory tightening in Vietnam’s e-commerce sector. Last week, the Vietnamese parliament passed changes to end tax exemptions on low-value imported goods and impose value-added tax (VAT) on local operators of foreign e-commerce platforms. The finance ministry is moving to eliminate the longstanding tax break, signaling significant implications for foreign e-commerce players.

Temu also faces challenges in Indonesia, where regulators have requested its removal from app stores to protect local merchants. Both companies are under scrutiny as Southeast Asian nations seek to regulate the rapidly growing e-commerce market.