Less than two weeks ago, Temu was forced to suspend operations in Vietnam for failing to meet a platform registration deadline.

Although Temu only debuted in Vietnam in October, it quickly grew in popularity due to its steep discounts and established itself amongst other foreign-owned e-commerce platforms such as Shopee, Lazada, and TikTok Shop. Together, these platforms account for an astounding 99% of the EC market share in Vietnam.

The Vietnamese Ministry of Industry and Trade indicated Temu’s operations will remain suspended until the registration procedure is complete. Temu has confirmed that it is working to finalize the process. Vietnam’s legal framework allows for penalties against unregistered e-commerce platforms, and fines have previously been issued to businesses failing to comply.

Whether Temu’s suspension will be lifted remains uncertain.

Beyond regulatory complications, there has been significant pushback from both the Vietnamese government and local businesses regarding the platform’s deep discounts.

Vietnam remains the fastest growing economy in the SEA region. With E-commerce only making up only 8% of the country’s total retail sales, the growth potential is significant.

Despite this, Temu’s suspension in Vietnam reflects a broader trend across Southeast Asia, where governments are increasingly regulating cross-border e-commerce to protect local economies and ensure compliance with national laws. Brands must be mindful of these regulatory concerns when entering into markets in the region and selecting platforms to operate on.