People go shopping at a Mumuso store in Hanoi (Source: foody.vn) Hanoi (VNS/VNA) - The Ministry ofIndustry and Trade (MoIT) has announced its decision to inspect retailers witha business model similar to that of Mumuso Vietnam Company Limited.
As per the instructions of Minister Tran TuanAnh, the MoIT’s Domestic Market Department will cooperate with related governmentagencies to address the shortcomings of the legal framework in place to managechain stores.
The decision comes after the MoIT announced lastmonth that an investigation found that Mumoso Vietnam had violatedthe law by misrepresenting the origins of its products.
The MoIT concluded that 99.3 percent, or 2,257out of the total 2,273 products sold by Mumuso Vietnam, which represents itselfas a Korean brand, were imported from China.
The Domestic Market Department will also studyand propose to the ministry and competent authorities policies to increase theefficiency of State management over companies similar to Mumuso Vietnam.
The minister requested the Department ofCompetition and Consumer Protection, under MoIT, to expeditiously investigateand handle Mumuso’s violations of the Competition Law. The department will alsoco-ordinate with relevant units to monitor, supervise and evaluate compliancewith the competition law and protect the interests of consumers at someenterprises with a business model similar to that of Mumuso Vietnam.
In addition, the minister also asked the MarketManagement Department to urgently carry out procedures for handlingadministrative violations against Mumuso Vietnam and publicise theresults. He also directed the Market Management Sub-Departments to review andsupervise the operation of chain stores across the country and promptly reportto the ministry leaders on any violations.
After debuting in the Vietnamese market inDecember 2016, Mumuso Vietnam has opened 27 stores nationwide,offering thousands of products in five main areas of beauty, healthcare,fashion accessories, office and home appliances with prices from only 22,000VND (nearly 1 USD).
Though Mumuso customers are informed thatMumuso’s products are made in the Republic of Korea, the companywas unable to provide documents clarifying the accuracy of the informationduring the MoIT investigation, especially those relating to the origins ofproducts and production technologies, the ministry said.-VNS/VNA
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