Vietnam said Chinese online retailers Shein and Temu will need to register with the government before the end of November or it will block their internet domains and apps from being used in the country, Reuters reported on Monday.

Vietnam’s government and local businesses have expressed concern about the impact of Chinese online platforms on local markets due to deep discounting. The Trade Ministry also said it is worried about the potential for the sale of counterfeit items, according to the report.

Vietnam’s deputy trade minister Nguyen Hoang Long told a government meeting at the weekend that the ministry had worked with both Shein and Temu on the licensing matter.

“After the ministry’s notification, if these platforms do not comply, the Ministry of Industry and Trade will coordinate with relevant agencies to implement technical measures such as blocking applications and domains,” Long said in a government statement.

According to the report, Shein has been selling in Vietnam for at least two years, while Temu, owned by Chinese e-commerce giant PDD Holdings, started allowing users in Vietnam to shop last month.

Elsewhere in neighbouring Indonesia, both Temu and Shein are facing increased scrutiny and legal challenges. Last month, Indonesia has requested Apple and Google to block Temu from their app stores to protect small merchants from competing with ultra-cheap items.

Other e-commerce platforms that operate in Vietnam include Singapore-based Shoppe, Alibaba-backed Lazada and domestic companies Tiki and Sendo.

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