Vietnam has blocked Shein and Temu from selling until they register with local e-commerce agencies. The move follows concerns about discounts and counterfeits. Both companies plan to comply but gave no timeline for resuming operations.
Shein and Temu, known for their fast fashion dominance, have been barred from selling in Vietnam. The government enforced the suspension after the companies missed the deadline to register with Vietnam’s E-commerce and Digital Economy Agency. Concerns over counterfeit goods and massive discounts pushed authorities to act decisively. A Shein spokesperson confirmed its Vietnam site is offline but said international access remains open. Meanwhile, Temu reported it has submitted registration documents, signaling steps toward compliance.
The suspension stems from stricter e-commerce laws in Vietnam, requiring platforms to register their operations. Vietnam’s Ministry of Industry and Trade aims to ensure fair competition and protect consumers from counterfeits. This regulatory push aligns with global scrutiny of fast fashion platforms, especially regarding transparency and ethical practices. Local officials have not announced a timeline for lifting the ban, leaving millions of Vietnamese customers without access to these popular platforms.
Shein and Temu are no strangers to government intervention. Earlier this year, the European Commission investigated both platforms for compliance with the EU’s Digital Services Act, focusing on consumer safety and anti-counterfeiting measures. In the U.S., Shein faced a congressional inquiry in 2023 over labor practices. These developments underscore increasing global pressure on fast fashion companies to align with local and international regulations.
Both companies have expressed commitment to resolving issues in Vietnam. Shein emphasized its dedication to adhering to local laws, while Temu noted progress with submitted registration documents. Despite these assurances, neither company has provided a clear timeline for resuming operations in Vietnam. As regulatory scrutiny grows, the fast fashion giants face mounting challenges in sustaining their rapid global expansion while addressing compliance concerns.
Will Shein and Temu regain consumer trust?
Each week we select most important sector news and statistic
so that you can be up to speed