Temu Suspend Operations in Vietnam After Failing to Register with Authorities
Temu, the Chinese shopping app, has been forced to suspend its services in Vietnam after it failed to register with the relevant authorities, state media reported on Thursday.
Failure to Register with Authorities
Goods ordered on Temu were no longer being cleared through customs in Vietnam, state media reported, after the company missed an end-of-November deadline to register with the Ministry of Industry and Trade.
Reasons for Suspension
The suspension of services comes after the Ministry of Industry and Trade raised concerns in October over Temu’s stunningly low prices and their impact on local producers.
Concerns over Prices
The ministry expressed concerns that the “unusually low prices of its goods, which may impact domestically produced products”, according to the official Vietnam News Agency.
Algorithms and Discounts
Temu has caught the eye of Vietnamese consumers with discounts of up to 90% and free shipping, according to state media. However, it is unclear whether the goods are authentic.
Global Concerns
Temu is also one of the fastest-growing apps in Europe, but the EU has hit the shopping platform with a probe over concerns the site is doing too little to stop the sale of illegal products.
Investigations in Other Regions
In April, regulators in South Korea opened an investigation into Temu on suspicion of unfair practices including false advertising and poor product quality.
Conclusion
Temu’s suspension of services in Vietnam is a setback for the company, which has gained popularity globally for its low prices and powerful algorithms. However, the company’s failure to register with authorities and concerns over the authenticity of its products have raised questions about its business practices.
FAQs
* What led to Temu’s suspension of services in Vietnam?
+ The company failed to register with the relevant authorities.
* What were the concerns raised by the Ministry of Industry and Trade?
+ The ministry expressed concerns over Temu’s stunningly low prices and their impact on local producers.
* What is the current situation with Temu’s services in Vietnam?
+ The company’s services have been suspended, and it is unclear when or if they will resume.
* What are the global concerns surrounding Temu?
+ The EU has launched an investigation into the company’s practices, and regulators in South Korea have also opened an inquiry into the company’s activities.