Premier Vietnamese silk brand Khaisilk had closed all of its outlets as of October 27 after it was found selling Chinese-made products labeled “Made in Vietnam,” local media reports.

Khai Duc Co. Ltd., manager of Khaisilk brand, said the recently-inspected shop on Hang Gai Street in Hanoi had started recalling products and refunding customers.

In HCMC, the Khaisilk outlet on Dong Khoi Street in District 1 now displays a sign saying, “We are closed for inspection and stock checks.” Another outlet at the Lotte Legend Hotel on Ton Duc Thang Street has also been closed since October 26.

Customers in HCMC should be able to return Khaisilk products from November 10 at the brand’s outlet on Vo Van Tan Street in District 3. Khaisilk will receive returned products from 4 p.m. to 6 p.m. everyday within 30 days.

“Khaisilk outlets in HCMC are temporarily closed for authorities to inspect, and will only reopen when inspections have been concluded,” a Khaisilk hotline operator said in Vnexpress.

Khaisilk’s owner Hoang Khai has also withdrawn from Shark Tank Vietnam, a reality TV show for startups to get funding.

“Hoang Khai, one of the guest investors of Shark Tank Vietnam, has decided to withdraw from the show to focus on his corporation,” the TV show’s organizers announced on October 28.

Khaisilk’s crisis started when a Hanoi-based company complained that Khaisilk products might be actually made in China.

A Facebook user identified as Dang Nhu Quynh said his company bought 60 silk scarves at VND644,000 (more than US$28) each from the Khaisilk boutique on Hang Gai Street, Hanoi. However, the company found that one of the scarves had two labels, with one reading “Khaisilk – Made in Vietnam” and the other “Made in China.”

Minister of Industry and Trade Tran Tuan Anh then ordered the Market Surveillance Agency and the Vietnam Competition Authority to investigate the case.

Hoang Khai admitted on October 26 that half of the silk products in the Khaisilk outlet chain came from China, and apologized to customers.

SGT