Temu has launched in Vietnam and Brunei, bringing the ecommerce platform’s number of markets in Southeast Asia to 5.
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 delivery in Thailand.
With five markets in Southeast Asia, Temu now operates in a total of 82 countries and territories (as of 7 October 2024).
Many industry stakeholders heard about Temu’s potential entry in Vietnam as early as in July. Back then it was anticipated that the launch would happen in October – and it seems now Temu has made it on time.
That said, the launch version of Temu Vietnam site is rudimentary: it is currently only available in English (not Vietnamese); only credit card payments are accepted (not local wallets); and only two logistics players (Ninja Van and Best Express) are plugged in.
We believe additional language, payment and logistics options will be added in, if Temu puts sufficient effort into the Vietnam market.
While many might be familiar with Ninja Van, but not as much with 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 amongst the top ecommerce logistics players in the country.
Best also opened a subsidiary in Indonesia about six weeks ago:
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:
In the Momentum Works Ecommerce in Southeast Asia 2024 report, we highlighted that Vietnam was the fastest growing ecommerce market in 2023, with a YoY GMV growth rate of almost 53%:
The data we have been gathering this year shows that the growth momentum is continuing in 2024.
While ecommerce in Indonesia is no longer growing as fast as in Vietnam, Southeast Asia’s most populous country still accounts for almost half of the region’s ecommerce market. It is a prize that Temu will keep trying to crack.
Just last week, Indonesian authorities reiterated that it would upload a ban on Temu to protect the country’s MSMEs.
However, we should not forget that exactly a year ago, Indonesia also banned TikTok Shop, only for the social-media-based ecommerce platform to return through acquiring local player Tokopedia after a mere 2 months.
A new Indonesian cabinet under President-elect Prabowo Subianto will be sworn in later this month – we might get more clarity on the potential policy directions then.
There are also unconfirmed and unverified rumours that Temu is talking to one of the local ecommerce platforms in Vietnam for potential acquisition.
For more insights on Temu as a business, its strategies, focus, strengths, weaknesses and more, you can get a copy of Momentum Works’ latest Temu: 2 years on report.
