Chinese online marketplace giant Temu penetrates Vietnamese market

Chinese online marketplace giant Temu penetrates the Vietnamese market. Photo: Forbes

The ecommerce platform started its first two markets in Southeast Asia, the Philippines and Malaysia, slightly more than a year ago. In July this year, Temu started deliveries in Thailand.

With five markets in Southeast Asia, Temu now operates in 82 countries and territories, as of October 7.

As reported by research firm Momentum Works, industry stakeholders heard about Temu’s potential entry in Vietnam as early as July.

That said, the launch version of the Temu Vietnam site is rudimentary. It is currently only available in English, only credit card payments are accepted (not local wallets), and only two logistics players (Ninja Van and Best Express) are plugged in.

Many customers may be familiar with Ninja Van, but not as much as Temu’s other launch logistics partner, Best Express.

NYSE-listed Best was once one of the largest express delivery players in China. In 2021, the company sold its domestic express business to J&T Express, and shifted its focus to other logistics solutions as well as overseas expansion. Its subsidiary in Vietnam is one of the best performing, and ranks among the top ecommerce logistics players in the country.

According to Temu’s Vietnam site, shipping will take 4-7 days, much faster than 5-20 days to Malaysia and the Philippines. This is understandable, as shipping from Guangzhou to Vietnam can be done easily over land.

Momentum Worksbelieves additional language, payment, and logistics options will be added if Temu puts sufficient effort into the Vietnamese market. There are also rumours that Temu is talking to one of the local ecommerce platforms in Vietnam for a potential acquisition.

According to the Momentum Works Ecommerce in Southeast Asia 2024 report, Vietnam was the fastest growing ecommerce market in 2023, with on-year growth of almost 53 per cent.

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