However, Temu’s rapid rise was short-lived. In early 2025, Vietnamese authorities suspended the platform’s operations after it failed to comply with government regulations regarding foreign business registration[5]. The incident highlights the increasing scrutiny faced by foreign digital companies operating in Vietnam, as the government moves to protect local businesses and ensure fair competition.

Despite regulatory hurdles, Chinese e-commerce platforms are expected to continue investing in Vietnam, viewing it as a key growth market in Southeast Asia’s digital economy.

In conclusion, while several Chinese e-commerce platforms have made efforts to reach Vietnamese consumers through cross-border services and localized interfaces, none currently operate officially or have an established legal presence within Vietnam’s domestic market.

Electric Vehicles

In the automotive sector, Chinese electric vehicle (EV) makers are also strengthening their footprint in Vietnam, with BYD leading the way. The company has outlined an ambitious plan to open 13 dealerships initially, aiming to expand to around 100 locations by 2026[6]. This aggressive expansion strategy signals BYD’s commitment to tapping into Vietnam’s emerging EV market, which is supported by government policies promoting green transportation.

Announced selling prices of BYD electric car models in the Vietnamese market

BYD officially introduced three models to Vietnamese consumers, including the Atto 3, a compact crossover that has already seen success in other international markets. The company plans to expand its product lineup to six models by October 2025, offering more options across different price segments to appeal to a wider range of customers[7]. The company’s swift expansion reflects broader trends, as Vietnam becomes an increasingly attractive destination for EV investment thanks to rising consumer interest in sustainable vehicles and favorable regulatory support.

Beyond BYD, other Chinese automakers such as Wuling, Chery, and MG (now under Chinese ownership) have also entered or shown interest in the Vietnamese market, though their presence remains less prominent. Wuling, for example, has partnered with local firms to assemble mini EVs like the Wuling HongGuang Mini EV, targeting urban commuters with affordable pricing. Chery has announced plans to establish a $800 million EV manufacturing plant in Thai Binh province, aiming to produce models like the OMODA and JAECOO by 2026[8]. MG is exploring the development of an automobile manufacturing and assembly factory in Vietnam, with plans to establish a research team by the end of 2024[9].

Factors Driving the Expansion

Several factors contribute to the successful penetration of Chinese retail brands in Vietnam. One major advantage is competitive pricing and product diversity; Chinese goods often cost less than local alternatives. For example, in traditional markets like Tan Binh and An Dong in Ho Chi Minh City, Chinese fashion items are typically priced 5–25% lower than Vietnamese products[10], making them highly attractive to both traders and consumers. In addition, Chinese companies benefit from efficient supply chains that cover every stage from raw materials to distribution, enabling them to respond quickly to market changes while maintaining low costs[11]. Another important factor is their strong research and development (R&D) capabilities[12], which allow Chinese brands to swiftly introduce new products that align with market trends, giving them a distinct edge over many local competitors with more limited innovation resources. Finally, Chinese brands excel at using digital platforms and social media, with many Vietnamese small traders reselling their products via channels like TikTok to reach younger audiences and boost visibility.

Chinese cakes on display at a store in Thu Duc City, a district-level unit in Ho Chi Minh City

Geographical proximity also plays a critical role: Vietnam shares a long land border with China, which significantly reduces transportation time and costs. This is further supported by increasing investment in logistics hubs and infrastructure in northern Vietnam, enhancing cross-border trade efficiency. For instance, Vietnam has approved an ambitious project to construct a new 390km railway linking the port of Haiphong and the capital Hanoi with Lao Cai, a critical border point with China. The project, expected to cost over $8 billion, aims to modernize Vietnam’s rail infrastructure and facilitate trade with its northern neighbor[13].

Moreover, preferential tariffs under free trade agreements (FTAs) between ASEAN and China lower import taxes on many categories of goods, giving Chinese products a clear price advantage over those from other countries. According to data from the World Integrated Trade Solution (WITS), Vietnam applies reduced tariff rates on imports from China under these agreements, enhancing the competitiveness of Chinese goods in the Vietnamese market[14].

Challenges and Regulatory Responses

The rapid influx of Chinese retail brands into Vietnam has raised growing concerns among authorities, local businesses, and industry observers. One of the primary challenges is the impact on local enterprises, particularly in highly competitive sectors such as fashion, electronics, and fast-moving consumer goods. Chinese products, which often come at lower prices and with greater variety, have made it increasingly difficult for Vietnamese manufacturers and retailers to maintain their market share. Many small and medium-sized local businesses, already constrained by higher production costs and limited access to advanced supply chains, are struggling to keep pace with the aggressive pricing strategies and constant product innovation offered by Chinese brands[15]. This situation risks eroding the competitiveness of domestic industries and could, over time, lead to reduced diversity in the market if local players are squeezed out.

In response to these challenges, the Vietnamese government has moved to implement regulatory measures aimed at maintaining a level playing field. Authorities have increased scrutiny over foreign e-commerce platforms, requiring companies like Temu and Shein to officially register with the government or face suspension of their operations[16]. These steps are intended not only to ensure compliance with Vietnamese laws but also to protect local businesses from unfair competition and prevent the dominance of unregulated foreign entities. Additionally, regulators are paying closer attention to issues such as tax compliance[17], consumer protection[18], and the transparency of cross-border transactions. Such actions reflect a broader strategy by Vietnam to carefully manage foreign investment, promoting healthy competition while safeguarding the interests of its domestic economy and ensuring long-term sustainable growth.

미래 전망

Vietnam’s retail market is set for robust growth, with a projected CAGR of over 12% through 2029, expanding from $142 billion to $350 billion by 2025. In this environment, Chinese retail brands will continue to expand aggressively, leveraging strengths in competitive pricing, efficient supply chains, and digital marketing, particularly in low- and medium-cost goods like electronics, fashion, and household items. These products remain attractive to price-sensitive Vietnamese consumers.

Chinese brands are also focusing on higher-quality products in sectors like automobiles, home appliances, and technology, though they still face strong competition from established European, Japanese, and American brands. While Chinese products will maintain an edge in budget-friendly categories, it will take time for them to match the premium quality and reputation of global competitors.

Meanwhile, the Vietnamese government is actively working to enhance local product competitiveness and improve supply chain efficiency. These efforts will ensure a balanced, competitive market, fostering innovation and sustainable growth in the retail sector.

결론

The burgeoning presence of Chinese retail brands in Vietnam reflects broader regional economic shifts and the increasing interconnectedness of markets. While these brands bring benefits such as affordable products and increased consumer choices, they also present challenges for local businesses. Navigating this complex landscape will require strategic planning, regulatory foresight, and collaborative efforts between the government and domestic enterprises to ensure sustainable and inclusive growth in Vietnam’s retail sector.

[1] https://www.vietdata.vn/post/vietnam-bubble-tea-market-2023-fierce-competition-among-brands?srsltid=AfmBOopxMyaZ747FG1fKe9-c5YE5kBE34-fAdnCeJtCSt1KJkW1rdcTl

[2] https://vir.com.vn/vietnams-fb-market-exciting-for-expanding-chinese-chains-113688.html

[3] https://en.vietnamplus.vn/foreign-e-commerce-platforms-expand-market-in-vietnam-post300967.vnp

[4] https://vietnamnet.vn/en/temu-s-super-low-prices-prompt-concern-as-e-commerce-giant-enters-vietnam-2334934.html

[5] https://vneconomy.vn/e-commerce-platform-temu-suspends-operation-in-vietnam.htm

[6] https://vir.com.vn/byd-targets-openning-100-dealerships-in-vietnam-within-next-three-years-112817.html

[7] https://www.reuters.com/business/autos-transportation/byd-introduce-three-more-car-models-vietnam-market-2024-07-18/

[8] https://www.reuters.com/business/autos-transportation/chinas-chery-set-up-800-mln-automobile-factory-vietnam-2024-04-04/

[9] https://emidas-magazine.com/en/news/20062024-2744

[10] https://news.tuoitre.vn/vietnamese-traders-prefer-low-cost-chinese-goods-to-locally-made-products-10382600.htm

[11] https://www.vietnam-briefing.com/news/vietnam-versus-china-manufacturing-cost-quality-infrastructure-comparison.html/

[12] https://www.mckinsey.com/capabilities/operations/our-insights/chinas-digital-r-and-d-imperative

[13] https://vir.com.vn/national-assembly-discusses-lao-cai-hanoi-haiphong-railway-project-122811.html

[14] https://www.vietnam-briefing.com/news/vietnam-reduces-mfn-tariffs-strategic-imports-decree-73.html

[15] https://news.tuoitre.vn/vietnamese-manufacturers-struggle-for-survival-amid-price-pressure-from-chinese-e-commerce-platforms-insider-10382550.htm

[16] https://en.vietnamplus.vn/temu-shein-must-complete-business-registration-by-month-end-post303801.vnp

[17] https://www.aseanbriefing.com/news/vietnams-new-e-commerce-tax-decree-what-digital-platforms-need-to-know/

[18] https://english.luatvietnam.vn/legal-news/building-trust-in-the-digital-marketplace-consumer-protection-laws-for-e-commerce-in-vietnam-4729-99750-article.html

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