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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

Published Thu, Dec 12, 2024 · 12:38 PM
    • 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.
    • 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. PHOTO: JAMILLE TRAN, BT

    [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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