The entry of the e-commerce platform Temu into the Vietnamese market, represented by YouNet ECI, is expected to have three significant impacts on the domestic market.
In recent days, on social networking platforms, there have been frequent advertisements about the Temu e-commerce platform with attractive content such as: Exciting promotions with up to 90% off many items, or free shipping, fast shipping time of only 4 days.
Previously, in early October, there was information that the e-commerce application Temu quietly entered the Vietnamese market. In the early stages, the website and application versions of Temu were relatively rudimentary, did not provide Vietnamese options and only accepted credit card payments and did not support local e-wallets. However, recently, this application has continuously added many features suitable for the Vietnamese market. These are the reasons why many people are curious to visit Temu to experience it.
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| Temu has sent an official document to the Department of E-commerce and Digital Economy regarding the implementation of requirements for compliance with Vietnamese e-commerce laws. |
The 2023 survey results of YouNet ECI Company and Buzzmetrics Company (enterprises specializing in research on social network data analysis and e-commerce) show that about 9 out of 10 Vietnamese consumers will be affected by price factors when shopping online.
Assessing the impact of the Temu e-commerce platform when entering the Vietnamese market, YouNet ECI representative predicted that there will be some significant changes for the market.
First , the online sellers who are currently importing goods from China to Vietnam will be severely affected. If Temu continues to maintain a large proportion of cross-border goods from China, this group will face challenges in competing on price and supply.
YouNet ECI's e-commerce data shows that currently online sellers and non-official shops account for 95% of the number of sellers doing business on platforms in Vietnam, so this impact is expected to be quite widespread.
Second , OEM (OEM) brands and SMEs (small and medium enterprises) doing business on e-commerce will face strong competition.
Currently, the majority of Chinese domestic products in the Vietnamese market are mainly in the fashion and cosmetics industries. However, with the expansion of Temu’s product portfolio, low to mainstream brands in Vietnam will feel the pressure in other industries besides fashion and cosmetics.
Third, on a more positive note, Temu can boost the growth of the e-commerce market like TikTok Shop did. When TikTok Shop joined, not only them but also the entire e-commerce market grew thanks to the Shoppertainment trend that TikTok Shop actively promoted. Shoppertainment has so far helped bring growth potential to many new categories, expand the consumer base and improve technology for the Vietnamese e-commerce market.
At the regular press conference of the Ministry of Industry and Trade held yesterday afternoon (October 23), Deputy Minister Nguyen Sinh Nhat Tan answered questions related to the management of cross-border e-commerce platforms operating in Vietnam, especially the recent appearance of the "cheap" platform Temu. Deputy Minister Nguyen Sinh Nhat Tan said that according to the provisions of Decree 85/2021/ND-CP amending Decree 52/2013/ND-CP on e-commerce, e-commerce platforms operating in Vietnam are required to register with the Ministry of Industry and Trade.
Deputy Minister Nguyen Sinh Nhat Tan said, “We also need to investigate and research specifically and cannot confirm whether that price is real or not. First of all, we must still respect the fact that buying and selling is an agreement in the market.”
Deputy Minister Nguyen Sinh Nhat Tan emphasized that it is necessary to stay calm in the face of the above situation in order to make a thorough assessment and find the right cause. In the case of counterfeit goods, it is necessary to prevent their circulation; in the case of dumped goods, it must be handled according to market dumping regulations. In case of enterprises making genuine products, creating products with competitive prices, they must comply with market principles.
“At that time, we will consider creating a corridor of standards and technical barriers to protect domestic production. Along with that, we will improve competitiveness and review support policies for domestic enterprises. Currently, the Ministry of Industry and Trade has a general plan on these issues and is implementing many measures to protect domestic production,” Deputy Minister Nguyen Sinh Nhat Tan affirmed.
On October 24, 2024, Temu sent an official document to the Department of E-commerce and Digital Economy (Ministry of Industry and Trade) regarding the implementation of requirements for compliance with Vietnamese e-commerce laws when entering the market. To strengthen state management in the field of cross-border e-commerce in general, in recent times, the Ministry of Industry and Trade has drastically implemented a series of measures. In particular, it has directed functional units under the Ministry: the General Department of Market Management to coordinate with the General Department of Customs to strengthen supervision and control of goods and products from cross-border platforms; the National Competition Commission to strengthen the protection of consumer rights in cyberspace, take timely measures to disseminate information to consumers, raise awareness of risks when purchasing on cross-border e-commerce platforms; in case of violations, coordinate with the Ministry of Information and Communications to take appropriate technical measures to prevent them. Prepare a report to submit to the Prime Minister to direct the Ministry of Finance to study a plan to monitor and manage imported goods circulating through e-commerce platforms that do not comply with Vietnamese laws in the field of e-commerce. |
Source: https://congthuong.vn/cong-ty-younet-eci-neu-3-tac-dong-cua-temu-vao-thi-truong-thuong-mai-dien-tu-viet-nam-354592.html
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