People go shopping at a Mumuso store in Hanoi (Source: foody.vn)

Hanoi (VNS/VNA) - The Ministry of Industry and Trade (MoIT) has announced its decision to inspect retailers with a business model similar to that of Mumuso Vietnam Company Limited.

As per the instructions of Minister Tran Tuan Anh, the MoIT’s Domestic Market Department will cooperate with related government agencies to address the shortcomings of the legal framework in place to manage chain stores.

The decision comes after the MoIT announced last month that an investigation found that Mumoso Vietnam had violated the law by misrepresenting the origins of its products.

The MoIT concluded that 99.3 percent, or 2,257 out of the total 2,273 products sold by Mumuso Vietnam, which represents itself as a Korean brand, were imported from China.

The Domestic Market Department will also study and propose to the ministry and competent authorities policies to increase the efficiency of State management over companies similar to Mumuso Vietnam. 

The minister requested the Department of Competition and Consumer Protection, under MoIT, to expeditiously investigate and handle Mumuso’s violations of the Competition Law. The department will also co-ordinate with relevant units to monitor, supervise and evaluate compliance with the competition law and protect the interests of consumers at some enterprises with a business model similar to that of Mumuso Vietnam.

In addition, the minister also asked the Market Management Department to urgently carry out procedures for handling administrative violations against Mumuso Vietnam and publicise the results. He also directed the Market Management Sub-Departments to review and supervise the operation of chain stores across the country and promptly report to the ministry leaders on any violations.

After debuting in the Vietnamese market in December 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 22,000 VND (nearly 1 USD).

Though Mumuso customers are informed that Mumuso’s products are made in the Republic of Korea, the company was unable to provide documents clarifying the accuracy of the information during the MoIT investigation, especially those relating to the origins of products and production technologies, the ministry said.-VNS/VNA