Chinese e-commerce platforms Temu and Shein are ramping up efforts to capture Vietnam’s growing market by offering steep discounts and promotions. Temu, owned by PDD Holdings, recently launched in Vietnam, selling directly to consumers with offers such as free shipping for orders over ₫120,000 and hefty first-time purchase discounts. Similarly, Shein offers free shipping on orders above ₫200,000, enticing Vietnamese shoppers.

Vietnam's e-commerce market, which grew by 25 per cent annually, attracted major platforms like Taobao and JD.com, spurred by open policies and strong retail potential. The market is valued at $23.8 billion in 2023, ranking third in Southeast Asia.

However, the influx of cheap Chinese goods is pressuring local retailers. Platforms like Temu and TikTok offer lower-priced alternatives, forcing domestic sellers to compete on price. Some countries, including Indonesia, have already banned Temu to protect local businesses.

Experts argue Vietnam should regulate foreign platforms without banning them, ensuring local businesses can compete on a level playing field. The Ministry of Industry and Trade is working to enhance regulations and increase oversight to protect both consumers and local sellers in the rapidly growing digital marketplace.