Aug 04, 2018 / 11:28

Companies similar to Mumuso in Vietnam under scrutiny

An investigation of the Ministry of Industry and Trade (MoIT) concluded that 99.3% or 2,257 out of the total 2,273 products sold by the self-claimed-Korean-brand Mumuso Vietnam were imported from China.

The MoIT has announced its decision to investigate enterprises operating with chain stores nationwide that have a similar business model to Mumuso Vietnam, said the Ministry on its website on August 3. 
Illustrative photo.
Illustrative photo.
As per Trade Minister Tran Tuan Anh's instruction, the ministry's Domestic Market Department will cooperate with related government agencies in addressing shortcomings of the legal framework which focuses on managing the chain store model. 

The move is aimed to increase efficiency of state management over companies similar to Mumuso Vietnam. 

The minister requested the Vietnam Competition Authority (VCA) to investigate and deal with Mumuso Vietnam's violations of the Competition Law.

The MoIT on July 13 announced violations found at Mumuso Vietnam with regard to the origin and brand of the company's products, following the ministry's conclusions of its investigation into the company's operations between 2016 and May 2018.

The investigation found signs of legal violations as the company had provided inaccurate and misleading information to customers.

Notably, 99.3% or 2,257 out of the total 2,273 products sold by Mumuso Vietnam were imported from China.

Among a number of Mumuso Vietnam's violations, customers are informed that Mumuso's products have South Korean origin, however, the company was unable to provide documents clarifying the accuracy of the information during the MoIT's investigation, especially those relating to the origins of products and production technologies, the ministry said.

After debuting in the Vietnamese market in December 2016, Mumuso has opened 27 stores nationwide, offering thousands of products in five aspects including beauty, healthcare, fashion accessories, office and home appliances with prices from only VND22,000 (US$1), it claims.