At a press conference today, July 31, at the office of the National Steering Committee for the Prevention of Smuggling, Trade Fraud and Fake Goods, Tin said that Con Cung has sold products without issuing invoices. The labels on its “Made in Vietnam” products were not printed in Vietnamese, and the labels of Con Cung products in general are not in line with the current regulations.
In addition, the stamps of the original manufacturer on some products were hidden behind the stamps of another producer. The chain was also accused of selling dairy products that were not processed in line with German technologies, as advertised earlier.
The sales of its cosmetic products were also found to be illegal.
Tin added that Con Cung could not prove the legitimacy of its promotion programs either.
He confirmed that the Ministry of Industry and Trade will coordinate with the Ministry of Science and Technology to investigate Con Cung’s violations and inspect all Con Cung outlets in other localities, in addition to the ones in Hanoi and HCMC.
A 16-member inspection team, led by Tran Hung, deputy director of the Market Management Department under the Ministry of Industry and Trade, has been formed, according to the Lao Dong newspaper.
Hung said strict penalties will be imposed on the firm if it evades taxes and trades smuggled products.
The Ministry of Industry and Trade has also requested Con Cung to explain its VND1-billion reward for the first customer who detects a fake product at its stores.
Con Cung chairman Nguyen Quoc Minh said the firm wants to prove that its products are genuine, stressing that the firm is striving to develop a Vietnamese brand, as only 30% of Con Cung products are outsourced abroad.
With some 600,000 customers per month, Con Cung’s annual revenue grows by 100%. The firm planned to list its shares on the stock market in 2020, so it has no reason to commit violations that will damage its reputation and hurt its customers, Minh remarked.
In May, a customer named Truong Dinh Cong Vinh, who purchased a baby girl clothing set worth VND329,000 from a Con Cung outlet, complained on his Facebook page that the retailer had replaced the product’s “Made in Thailand” label with another that read “CF,” which stands for “Con Cung Fashion.” This prompted the HCMC Market Surveillance Agency to inspect a few Con Cung outlets in Districts 1, 3 and 6. During the inspections, the agency confiscated more than 5,500 products, worth nearly VND500 million.
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