Recently, the wave of low-priced goods from Chinese e-commerce platforms such as Taobao, 1688, Shein, and Temu is forcing Vietnamese enterprises to enhance their competitiveness in the domestic market. In early October this year, Temu, the international version of China’s second-largest e-commerce platform Pinduoduo, officially entered the Vietnamese market and quickly gained favor among Vietnamese consumers through highly competitive prices and diverse promotional schemes.
Du Youxing, CEO of Accesstrade Vietnam, stated that while these e-commerce platforms bring more shopping opportunities to local consumers, they also pose challenges to domestic production and operating enterprises in the long run. This forces local manufacturers to improve product quality and increase logistics investment.
Nguyen Thi Chau, Director of V.N.F Garment Company in Ho Chi Minh City, pointed out that Chinese e-commerce platforms use a factory-direct sales model, reducing intermediary links by over 50%, making sales prices far lower than physical stores. This makes it more difficult for domestic products or enterprises importing goods from other countries to compete with Chinese products in the domestic market.
Representatives from the Vietnam Logistics Service Enterprise Association believe that to address the influx of cheap Chinese goods, Vietnamese enterprises need to focus on improving product quality and after-sales service while enhancing logistics systems to reduce costs and increase competitiveness.
The Ho Chi Minh City Department of Industry and Trade has proposed to the Ministry of Industry and Trade to prevent and strictly handle violations, including penalties or suspension of operations for platforms with repeated violations. The department also suggested strengthening compliance checks on international e-commerce platforms to create a fair competitive environment for Vietnamese enterprises.
Nguyen Binh Minh, a member of the Vietnam E-commerce Association Executive Committee, suggested that relevant departments need to establish a legal framework to strictly manage cross-border e-commerce activities. Strengthen inspection and supervision to prevent counterfeit goods, combat tax evasion through e-commerce, protect consumer rights, and ensure fair competition for local enterprises.
Recently, Minister of Industry and Trade Nguyen Hong Dien instructed departments to strengthen state management of e-commerce. The Department of E-commerce and Digital Economy needs to coordinate with relevant institutions to strengthen publicity and guide consumers to be cautious with cross-border e-commerce platform shopping behavior.
The Ministry of Industry and Trade has reported to the Prime Minister, suggesting the Ministry of Finance study and develop regulatory solutions for e-commerce platform imports that do not comply with Vietnamese laws and regulations. The Market Management General Department has also been requested to strengthen cooperation with the General Department of Customs and other relevant institutions to increase supervision of warehouses operated by unlicensed cross-border e-commerce platforms.
Key Points:
- Chinese e-commerce platform low-priced goods create competitive pressure on Vietnamese local enterprises.
- Vietnamese government departments are taking measures to regulate cross-border e-commerce market order.
- Local enterprises need to improve product quality and logistics efficiency to enhance competitiveness.
- Government will strengthen supervision and compliance checks on cross-border e-commerce platforms.
- Vietnamese relevant departments are developing more comprehensive cross-border e-commerce management policies.
- Authorities are working to protect local enterprises while maintaining market fairness.
