Legal pressures in Vietnam may push Temu to mull a pivot, compete directly with Shopee
The shopping platform may have to include more Vietnam-registered businesses instead of relying only on a direct-from-China supply chain
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[HO CHI MINH CITY] Cross-border shopping platform Temu is feeling the heat in Vietnam from regulatory hurdles, backlash from local sellers and higher taxes, and may have to pivot from its direct-from-China supply-chain model.
One of its options is to adopt the marketplace model it is rolling out in its largest market, the US, which could put the Chinese e-commerce giant in more direct competition with South-east Asia’s leading e-commerce player, Shopee.
Hanoi suspended Temu’s operations in Vietnam over registration issues a mere month after its debut in October, in its drive to step up scrutiny of local operators of foreign e-commerce platforms.
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