Ho Chi Minh Times

Saturday, May 24, 2025

Chinese E-Commerce Platforms Challenge Vietnamese Businesses with Low-Cost Goods

Influx of cheap Chinese products pressures local enterprises to adapt or risk falling behind.
Vietnamese consumers are increasingly turning to Chinese e-commerce platforms like Temu, Taobao, and 1688 for low-cost goods, posing a significant challenge to domestic businesses. The allure of cheaper prices, free delivery, and a wide variety of products has made Chinese goods highly competitive in the Vietnamese market. Local retailers and producers are struggling to keep up, as Chinese imports often undercut Vietnamese products in both price and convenience.

Shoppers are drawn to the affordability of Chinese goods. For instance, household items and fashion accessories from China are priced significantly lower than similar Vietnamese products. Platforms like Temu offer promotions of up to 90 percent off and have delivery times as quick as four to seven days, thanks to efficient logistics networks that include warehouses near the Vietnam-China border.

Vietnamese businesses are feeling the pressure. Companies like Meet More Vietnam Co. Ltd., a coffee producer, face intense competition due to the low prices and free shipping offered by Chinese counterparts. Local enterprises are urged to focus on improving product quality, enhancing after-sales services, and optimizing logistics to reduce costs. Experts suggest that investing in specialized e-commerce warehouses and leveraging strong brand identities can help Vietnamese firms remain competitive. There is also a call for a legal framework to protect domestic production and retail sectors.

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