A trade expert said that Chinese products have been sold among Vietnamese products as ‘made-in-Vietnam’ products in Vietnam for a long time.
For example, Chinese ceramics are sold at Bat Trang, a traditional ceramics craft village. Chinese silk is sold at Van Phuc, a traditional silk craft village, and Chinese fruits are often sold as Vietnamese fruits.
A report released by the Business Association of High Quality Vietnamese Products in 2016 also said many Vietnamese enterprises do not make products, but they buy products from China and sell under their brands.
Businesses commit trade fraud because Chinese products don't sell well in Vietnam. Vietnamese consumers tend to turn their back on products sourced from China because they assume they are low-quality and toxic.
Luu Duy Dan, deputy chair of the Vietnam Craft Village Association, said Vietnamese traders want to sell Chinese products because they bring higher profits.
Businesses commit trade fraud because Chinese products don't sell well in Vietnam. Vietnamese consumers tend to turn their back on products sourced from China because they assume they are low-quality and toxic. |
“Chinese goods are diverse and are cheaper than Vietnamese items,” he explained. “A Vietnamese bamboo-made lantern, very beautiful and durable, is priced at VND150,000, while the Chinese sell a product like this at VND15,000 only, though it is less beautiful and durable.”
According to Dang Vinh Tho, chair of the Silkworm Association of Vietnam, many households in the silk village of Van Phuc no longer make silk, but import Chinese silk to sell domestically.
Merchants prefer made-in-Vietnam silk, but they still sell made-in-China products. Vietnam, which can make high-quality silk with large growing areas and high technology, still has to import Chinese silk.
“Ironically, while Chinese merchants come to Vietnam to collect Vietnam-made silk, Vietnamese merchants flock to China to buy China-made silk to sell in Vietnam and swindle customers,” Lao Dong said.
Experts pointed out that merchants continue committing fraud because consumers don’t protest the fraud.
Forty-four percent of consumers, when asked what they will do if they are not satisfied with the quality of products and services, said they would keep silent and ignore the cases. At least 38.6 percent of them explained that the value of the disputed products is small, while 22 percent said they do not complain to competent agencies because the procedures are too complicated.
Nguyen Minh Duc from VCCI’s (Vietnam Chamber of Commerce & Industry) legal department has urged heavy sanctions on people who commit fraud. “If the fraudulent actions do not bear sanctions, consumers will have no confidence in labeling,” he said.
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