Not long ago, the Ministry of Industry and Trade suspended Temu's operations just one month after its launch due to business registration-related issues. In addition, the Vietnamese government is also considering canceling the tax exemption policy for low-value imported goods purchased mainly through online platforms.
Li Jianggan, CEO of Momentum Works, said: "Temu may not be able to rely entirely on the cross-border model to operate effectively and sustainably in this market. He said that Temu may need to turn to local online market operations, similar to the company's practices in major markets such as the United States, Europe, Japan and South Korea.
This means that Temu needs to cooperate with local Vietnamese sellers so that they can bring their products to the platform. If this model is adopted, Temu will face more intense competition from Shopee, which accounted for 61% of Vietnam's e-commerce market share last year.
