The Great 1688 Shopping Festival: A Bonanza of Deals for Vietnam

The launch of the Vietnamese interface by 1688 (following Temu and Taobao’s Vietnamese versions) and its sale of goods to Vietnam without a license has caused great concern among businesses.

To attract users, 1688 offers free shipping on all products delivered to their doorstep for 0 VND and lucky money gifts of 17,000 VND to new customers who shop on 1688. They even sell valuable electronic products such as digital cameras for 0 VND through account registration to receive purchase codes.

Speaking to Tien Phong Newspaper on the afternoon of November 21, a representative from the Ministry of Industry and Trade (MoIT) stated that the continuous deployment of sales activities in Vietnam by cross-border e-commerce platforms from China without proper authorization is an issue that managing authorities must address. According to this representative, there is currently a legal vacuum that needs to be filled by relevant ministries and sectors, such as MoIT, Ministry of Finance, Ministry of Public Security, General Department of Taxation, and General Department of Vietnam Customs, to limit and manage the situation of e-commerce platforms illegally selling goods in Vietnam.

“Only with the synchronized participation of relevant ministries, sectors, and agencies can we thoroughly handle the situation of illegal sales into Vietnam by e-commerce platforms from China. Accordingly, the tax authority needs to cross-check data to determine revenue; the Ministry of Information and Communications should monitor illegal advertising and sales activities in Vietnam, while customs, police, and market management authorities implement solutions to control goods sold in the country. This needs to be done soon,” they said.

At a recent regular government press conference, in response to a question about managing Chinese e-commerce platforms like Temu and Shein selling goods in Vietnam, Mr. Nguyen Hoang Long, Deputy Minister of Industry and Trade, said that the Ministry had worked with the legal departments of these platforms and requested them to urgently register their activities with the MoIT according to Vietnamese law this November. Along with that, Temu and Shein must stop all commercial and advertising activities that violate Vietnamese law to protect consumers. If these platforms do not comply, the MoIT will coordinate with relevant agencies to implement technical measures such as blocking applications and domain names.

According to Mr. Mai Son, Deputy Director General of the General Department of Taxation (Ministry of Finance), regarding the state management of domestic revenue collection, including revenue from e-commerce business activities, based on the provisions of the Law on Tax Administration and Circular No. 80/2021, the managers of e-commerce platforms such as Temu, Shein, and Amazon are responsible for registering, calculating, declaring, and paying taxes directly through the portal of the General Department of Taxation.

If it is detected that a foreign provider has declared incorrect revenue, the tax authority will cross-check data to determine the revenue and then request the foreign provider to fulfill its obligations. If there are signs of fraud or tax evasion, the tax authority will conduct inspections according to regulations.