https://apnews.com/article/vietnam-temu-pinduoduo-china-ecommerce-d904b9f0c51adb676639eaa34eea835d
Vietnam has suspended Temu, a Chinese online retailer similar to Amazon, after it failed to register the company by a government deadline at the end of November. It is currently unknown if Temu will be allowed to operate in Vietnam after its business is registered, as the Vietnam E-commerce and Digital Economy Agency and the Ministry of Industry and Trade have had concerns over Temus suspiciously cheap products and impact on Vietnamese owned manufacturers. Temus owners, Pinduoduo, have stated that they are working with the two government agencies to be able to operate in Vietnam again, and that they have already submitted applications. This follows Temu’s ongoing investigation in Europe due to suspicion of selling prohibited items.
Temu has already stated that they submitted the necessary application before its due date, which leads me to believe that Vietnam’s E-commerce and Digital Economy Agency working with the Ministry of Industry and trade have shut down Temu’s operations due to the Chinese factory labor undercutting Vietnamese factory labor. Worker standards and pay are most likely much cheaper in China, allowing Temu to market products at extremely low prices, leading to the Vietnamese economy depending on Chinese factory products, namely textiles. Because of this, Vietnamese factories are likely to have to sell their products for less to compete, negatively affecting factory workers and the economy as a whole.