Econ
Vietnam’s Asanzo suspends operation as losses from fraught allegation mount
Over the last 70 days of waiting for the final conclusion regarding the issue, Asanzo said the company had to pay VND1 billion (US$43,000) per day in salaries and wages for employees while its business operation was completely paralyzed over the saga.
Vietnam’s electronic firm Asanzo has announced its decision to temporarily suspend operation as it incurred losses of VND70 billion (US$3 million) while government agencies are investigating allegation that the firm has been selling Chinese goods disguised as made-in-Vietnam.
Over the last 70 days of waiting for final conclusion regarding the issue, Asanzo said the company had to pay VND1 billion (US$43,000) per day in salaries and wages for employees while its business operation was completely paralyzed over the saga, not to mention other expenses, stated the electronic firm in a statement dated August 30.
The company, therefore, has to suspend all production and business activities. It, however, still provides warranty services to ensure rights of customers.
During this period, Asanzo is committed to securing the rights of employees within its capabilities and in compliance with law, stated the company.
The date of August 30 was the deadline for government agencies to submit its conclusion to Prime Minister Nguyen Xuan Phuc over the investigation. However, Dam Thanh The, chief of the Standing Office of the National Steering Committee for Prevention and Fight against smuggling, commercial fraud and counterfeit goods, or Steering Committee 389, said the final conclusion has not been made due to the cautious nature of the issue.
According to The, the investigation would involve multiple agencies so the committee is handling the case objectively for a comprehensive and accurate conclusion, which would be disclosed as soon as possible.
Echoing The’s view, Director General of the Vietnam Directorate of Market Surveillance under the Ministry of Industry and Trade Tran Huu Linh said the agency has not completed its own report concerning Asanzo due to the large number of companies involving in the investigation.
On July 30, a mission from the Vietnam Chamber of Commerce and Industry (VCCI) held a meeting with Asanzo. It later concluded that the firm’s advertisement that its electronic products are made in Vietnam or produced in Vietnam is in line with regulations, as the company has acquired parts from domestic sources or assembled its products in Vietnam with imported parts.
Tuoi Tre newspaper in June reported Asanzo had been found selling its self-claimed "made-in-Vietnam" products but actually imported from China. Tuoi Tre quoted sources as saying Asanzo’s production facilities actually only assemble televisions with components originated from China, while other electronic household products are imported entirely from China without a single component made in Vietnam.
CEO of Asanzo Pham Van Tam held a press conference on June 23 admitting the use of up to 80% of foreign-made components for the company’s main products including televisions and air-conditioners. Tam also informed the software for televisions is fully developed in Vietnam.
Illustrative photo.
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The company, therefore, has to suspend all production and business activities. It, however, still provides warranty services to ensure rights of customers.
During this period, Asanzo is committed to securing the rights of employees within its capabilities and in compliance with law, stated the company.
The date of August 30 was the deadline for government agencies to submit its conclusion to Prime Minister Nguyen Xuan Phuc over the investigation. However, Dam Thanh The, chief of the Standing Office of the National Steering Committee for Prevention and Fight against smuggling, commercial fraud and counterfeit goods, or Steering Committee 389, said the final conclusion has not been made due to the cautious nature of the issue.
According to The, the investigation would involve multiple agencies so the committee is handling the case objectively for a comprehensive and accurate conclusion, which would be disclosed as soon as possible.
Echoing The’s view, Director General of the Vietnam Directorate of Market Surveillance under the Ministry of Industry and Trade Tran Huu Linh said the agency has not completed its own report concerning Asanzo due to the large number of companies involving in the investigation.
On July 30, a mission from the Vietnam Chamber of Commerce and Industry (VCCI) held a meeting with Asanzo. It later concluded that the firm’s advertisement that its electronic products are made in Vietnam or produced in Vietnam is in line with regulations, as the company has acquired parts from domestic sources or assembled its products in Vietnam with imported parts.
Tuoi Tre newspaper in June reported Asanzo had been found selling its self-claimed "made-in-Vietnam" products but actually imported from China. Tuoi Tre quoted sources as saying Asanzo’s production facilities actually only assemble televisions with components originated from China, while other electronic household products are imported entirely from China without a single component made in Vietnam.
CEO of Asanzo Pham Van Tam held a press conference on June 23 admitting the use of up to 80% of foreign-made components for the company’s main products including televisions and air-conditioners. Tam also informed the software for televisions is fully developed in Vietnam.
