Temu, a cross-border e-commerce platform, has been ordered to suspend operations by Vietnam’s Ministry of Industry and Trade for failing to complete its registration documents on time. Experts advise customers who have pending orders on Temu to take two critical steps to safeguard their purchases.

Concerns from customers

Many Temu customers in Vietnam are worried about potential financial losses, especially as the platform’s Vietnamese version is no longer accessible. Several buyers reported placing orders as early as November but have yet to receive their items.

Duy Khanh, a Hanoi resident, shared his experience: in October, he purchased products worth VND 200,000 on Temu, only to find them defective. He opted for a refund, which Temu offers through either the original payment card or a Temu account balance. Choosing the latter for its immediate credit, Khanh planned to make additional purchases.

However, when he tried to shop again in November, Temu implemented a minimum order value of VND 887,000 for checkout. This left Khanh unable to spend his account balance without significantly increasing his order.

“My funds in the Temu account remain inaccessible. Hearing about the platform’s suspension, I reached out to customer service but received no response,” Khanh said.

Official statements

Speaking to VietNamNet on the evening of December 4, Hoang Ninh, Deputy Director of the Department of E-commerce and Digital Economy under the Ministry of Industry and Trade, explained:

“Temu submitted its registration documents but has not yet completed the process. The Ministry announced that if Temu failed to finalize its registration by November 30, it would be required to cease operations. Accordingly, we recently instructed Temu to suspend its activities until all registration procedures are completed.”

On the matter of the platform’s increased minimum order value, Ninh clarified that this is a business strategy. Temu likely introduced the change after spending substantial resources on promotional campaigns and free shipping initiatives during its entry into the Vietnamese market.

As for delayed deliveries, Ninh noted that customs regulations might prevent shipments from non-registered e-commerce platforms from entering Vietnam.

Advice for buyers

Ninh advised customers awaiting deliveries to consider two options: Wait for Temu to complete its registration, which may allow pending orders to be fulfilled; Request a refund if the items are not delivered within the promised timeframe.

He added: “I’ve personally placed orders on Temu and received refunds for delayed deliveries. On one occasion, Temu even informed me to keep the item free of charge if it eventually arrived.”

Nguyen Binh Minh, a member of the Executive Committee of the Vietnam E-commerce Association (VECOM), recommended two immediate steps for affected customers: Contact Temu to inquire about delivery timelines, as customs issues may be causing delays; Cancel the order and request a refund if delivery remains uncertain.

Minh emphasized the importance of avoiding unlicensed e-commerce platforms to minimize risks and urged consumers to exercise greater caution when engaging in cross-border online shopping.

Risks of unlicensed platforms

The Ministry of Industry and Trade has previously warned consumers about potential risks when shopping on unregistered cross-border e-commerce platforms:

Lack of Oversight: Such platforms are not monitored by regulatory authorities, leaving consumers vulnerable to receiving substandard goods or poor after-sales service.

Difficulty in Dispute Resolution: Consumers face challenges in claiming refunds or returns for defective, misdescribed, or unsafe products. Complaints often lead to protracted and complicated dispute resolution processes.

Counterfeit Goods: Buyers risk purchasing fake or unverified products without clear origins.

Data Security Risks: Cross-border transactions typically require international payment details, such as credit card information or e-wallet credentials. Without compliance with Vietnam’s data protection laws, these details could be stolen or misused.

Unexpected Costs: Buyers may face hidden fees, such as unanticipated taxes or additional charges, not disclosed during the purchase process.
 

Binh Minh