Vietnam E-commerce Landscape: Temu's Bold Move Amid Indonesia Ban

Temu's Expansion into Vietnam and Brunei

International discount shopping platform Temu, operated by PDD Holdings, is expanding into Vietnam and Brunei to boost its Southeast Asia operations amidst Indonesia's recent ban on the popular e-commerce app. Although Temu's entry into Vietnam comes as the economy grows rapidly, its website's current support is limited to English and transactions through credit cards and Google Pay, excluding local payment methods like Momo.

Challenges in Vietnam

• Temu's initial approach appears rushed.
• Not integrating local payment systems could hinder adoption.
• The ban in Indonesia poses significant implications for future operations.

In affluent Brunei, Temu caters to both English and Malay speakers. The nation's high standard of living offers a promising backdrop for the platform's growth. Despite facing challenges in Indonesia, including accusations of harming local businesses, Temu remains undeterred. In October, Indonesian authorities banned Temu to protect local micro, small and medium enterprises (MSMEs) from the influx of cheaper foreign products. The Indonesian Minister, Budi Arie Setiadi, highlighted that Temu's unregistered status in the e-commerce space was another reason for the ban.

Regulatory Scrutiny and Market Position

Founded in Boston in 2022, Temu is currently available in over 80 countries and territories, ranking second in popularity for online marketplaces with 662.5 million visits per month, trailing Amazon. The platform faces mounting scrutiny from both the United States and the European Union. Measures discussed include potential changes to customs duties that could impact Temu and similar platforms.