[Updated] Vietnam Takes Immediate Steps to Regulate Unregistered Cross-Border E-Commerce Platforms Like Temu, Shein, and 1688

Updated on November 19, 2024:

To address the previously reported issues and ensure effective state management in the absence of specific customs regulations for e-commerce goods, the General Department of Customs has issued Document No. 5480/TCHQ-GSQL on November 8. This document requests local customs departments to enhance the inspection, supervision, and control of imported goods traded via e-commerce.

Specifically, customs will not process declarations that do not provide information about the e-commerce service provider's website or app, or where these platforms are not registered in Vietnam or reported in the Ministry of Industry and Trade's e-commerce management system. Additionally, customs will prioritize inspections of certain imported goods, including general foods, functional foods, and infant formula.

For more details, read the official news from Vietnam Customs here.

Previously reported on October 28, 2024:

On October 26, 2024, the Minister of Industry and Trade (MOIT) signed Document No. 8598/BCT-TMĐT¹, urging subordinate authorities to enhance the management of Vietnam’s e-commerce sector, particularly cross-border e-commerce.

According to this document, platforms such as Temu, Shein, and 1688 have recently garnered significant consumer attention and become a hot topic in Vietnam. However, these cross-border e-commerce platforms have been operating without registration with the MOIT. To improve the effectiveness and efficiency of law enforcement, the MOIT has requested the heads of its subordinate units to urgently implement several key tasks as below. Please note that most of the tasks need to be implemented in October 2024.

Key tasks from the Document

No.	Major responsible authority	Key tasks
1	E-Commerce and Digital Economy Agency	Enhance communication and guide consumers to be cautious when shopping online on general cross-border e-commerce platforms, and platforms like Temu, Shein, 1688 in particular. Advise the Ministry's leaders to report to the Prime Minister directing the Ministry of Finance to study monitoring and management measures for imported goods circulating through e-commerce platforms that do not comply with Vietnamese laws. Proactively contact Temu's legal team to ensure compliance with current Vietnamese laws; if necessary, coordinate with the Ministry of Information and Communications to implement appropriate technical solutions. Coordinate with relevant agencies to update the progress of issuing the Prime Minister's Official Dispatch. Focus on effectively implementing the National E-commerce Development Program for the 2021-2025 period.
2	Directorate of Market Surveillance	Coordinate with the Customs to strengthen monitoring, detection, and handling of warehouses and collection points (if any) of cross-border e-commerce platforms that have not been registered.
3	National Competition Commission	Strengthen consumer protection efforts in the online marketplace.
4	Legal Department	Coordinate with the E-Commerce and Digital Economy Agency to review relevant legal factors.
5	Import-Export Department	Propose measures to control imported goods entering Vietnam through e-commerce channels in coordination with the Customs.
6	Trade Promotion Agency	Propose measures to address promotional activities that do not comply with legal regulations on e-commerce platforms.
7	Domestic Market Department	Assess the impact of foreign goods entering the Vietnamese market via cross-border e-commerce platforms.
8	Science and Technology Department	Develop standards and regulations for items managed by the Ministry of Industry and Trade.
9	Inspection and supervision units	Strengthen inspection activities to promptly detect and strictly handle violations in trade, especially in the e-commerce environment

Vietnam’s Attitude

According to the E-commerce and Digital Economy Agency, “On October 24, Temu sent an official document to the E-commerce and Digital Economy Agency regarding the implementation of requirements to comply with Vietnamese e-commerce laws when entering the market”. Local media reports indicate that Temu is currently completing the registration procedures to operate in the Vietnamese market. Once the documents are finalized, the management agency will review them.

Experts have expressed support for cross-border e-commerce activities; however, they caution that the lack of stringent management and unregistered platforms undermines fairness in business practices. This situation adversely affects small and medium-sized enterprises, leading to unfair competition in the e-commerce landscape. During a recent MOIT press conference, the Deputy Minister highlighted that, according to Decree 85/2021/ND-CP, all e-commerce platforms operating in Vietnam must register with the MOIT. Therefore, thorough investigations and specific research are essential.

The Deputy Minister emphasized the need for a calm and careful evaluation of the current situation. He stated, “If there are counterfeit and shoddy products, they must be prevented from circulating; if goods are dumped, they must be handled according to market dumping regulations. Honest businesses that create competitive products must abide by market principles.” He added that Vietnam would consider establishing standard corridors and technical barriers to protect domestic production while enhancing competitiveness and assessing the impact on local industries. The MOIT has developed a comprehensive plan addressing these issues and is implementing various measures to safeguard domestic production.

ChemLinked Reminder

For enterprises looking to trade products in Vietnam via e-commerce and cross-border platforms, compliance with Vietnamese laws and regulations is essential prior to exportation. For any regulatory assistance, consultation, or translation, please contact [email protected].