Chinese online shopping apps Shein and Temu face a potential ban in Vietnam. According to a report by Reuters, the Vietnamese government recently said that it will block the internet domains and apps of Shein and Temu in the country, unless they register their business operations with Vietnam’s trade ministry. Deadline for the same is November’s end.
Shein has been selling into Vietnam for some time, while Temu, owned by Chinese e-commerce giant PDD Holdings, started operations in Vietnam last month.
The regulatory decision comes as Vietnamese officials express growing unease about Chinese online retailers’ market practices, particularly their aggressive pricing strategies and product quality concerns.
Vietnam’s Deputy Trade Minister Nguyen Hoang Long confirmed at a recent government session that his ministry has been in discussions with both companies regarding licensing compliance. “After the ministry’s notification, if these platforms do not comply, the Ministry of Industry and Trade will coordinate with relevant agencies to implement technical measures such as blocking applications and domains,” Long said in a government statement released after the meeting.

Temu under investigation in Europe

Temu is reportedly facing a European Union investigation over suspicions that the online shopping platform is failing to prevent the sale of illegal products. According to a report by news agency AP, the European Commission has opened its investigation against Temu. Temu was recently added to the list of “very large online platforms” needing the strictest level of scrutiny under the bloc’s Digital Services Act (DSA).
The European Commission is said to be investigating the platform for potential violations of the DSA, specifically regarding consumer protection, fair competition, and data privacy. The EU’s concerns center around the sale of non-compliant goods, addictive design features, and transparency of recommendation algorithms. Regulators are particularly worried about the ease with which “rogue traders” can resurface on the platform after being suspended.