The e-commerce and digital economy watchdog made the confirmation on October 23 on request from the Ministry of Industry and Trade.
Temu.com is currently the second most popular e-commerce platform in the world, with an average of 663 million monthly visits in the third quarter, following Amazon.
It connects consumers with manufacturers in China, allowing them to purchase products at the lowest prices. One of the main reasons Temu can offer such extremely low prices is its unique approach to subsidizing shipping costs.
Temu entered the Vietnamese market in early October, launching a series of promotions, including free shipping, a return policy with refunds up to 90 days, and a willingness to pay substantial commissions of up to 30% for affiliate marketing to boost the number of new users.
During a regular press briefing in Hanoi on October 23, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan expressed his surprise at the extremely low prices of products on offer on Temu.
However, he emphasized the need for thorough investigation and research, stating that he could not definitively confirm whether those prices reflect genuine products, as he respects the market law of supply and demand.
Many businesses and experts are expressing concerns that the influx of Chinese retail platforms like Temu, Shein, and Taobao will bring cheap, low quality goods into the Vietnamese market.
Currently, Indonesia has issued a ban on the operation of the Temu platform, while several other countries have also expressed concerns about this e-commerce platform, according to media outlets.
Tan affirmed that foreign e-commerce platforms entering Vietnam must register in accordance with regulations.
As soon as the results of investigation are available, the Ministry of Industry and Trade will propose solutions to ensure proper oversight and control, he said.
The Ministry of Industry and Trade stated that it is currently implementing a project to ensure strict management and combat fraud, counterfeit goods, and imitations. It has also assigned its market management watchdog to closely monitor this issue.
Since it entered the Vietnamese market, the Temu e-commerce platform has quickly attracted local consumers by offering a wide range of products at low prices, from electronics to household items and fashion. Notably, many items listed on Temu are extremely cheap, with some products discounted by 2-3 times their original price or promoted with discounts of up to 90%.
Notably, on the Temu Vietnam website, product prices have been displayed in Vietnamese dong, and customers can rate them with stars. The delivery time to Vietnam takes only 4-7 days, and all orders enjoy free shipping.
