Core Viewpoint - Temu is determined to continue its expansion in Vietnam despite facing regulatory challenges and a temporary suspension of operations due to compliance issues with local e-commerce laws [2][4][10]. Group 1: Temu's Operations in Vietnam - Temu has achieved significant performance in Vietnam prior to its suspension, with daily orders reaching tens of thousands and generating millions in GMV [6]. - The company offered discounts of up to 90% and employed aggressive marketing strategies, which attracted a large number of Vietnamese consumers [6][8]. - The low-price strategy has raised concerns among local sellers, who struggle to compete, leading to market instability [7][8]. Group 2: Regulatory Challenges - Temu's suspension was primarily due to non-compliance with Vietnam's e-commerce regulations, including failure to submit a business registration application and issues related to tax and financial reporting [8][10]. - The Vietnamese government has a strong protective stance towards local businesses, which complicates the operational landscape for foreign e-commerce platforms like Temu [8][10]. Group 3: Market Potential and Competition - Vietnam's e-commerce market is projected to reach $13.8 billion in 2024, with a significant increase in online shopping expected as consumer habits shift [12]. - The competitive landscape is dominated by Shopee, holding 59.2% market share, while TikTok Shop has rapidly grown to capture 23.3% [12][13]. - Temu's potential re-entry into the market could disrupt local brands and existing platforms, intensifying competition [12][15]. Group 4: Future Outlook - Analysts believe that if Temu resolves its compliance issues, it has a strong chance of returning to the Vietnamese market [10]. - The ongoing changes in the Vietnamese government may also influence the regulatory environment and Temu's prospects [10].