Previously, the Ministry of Industry and Trade had announced a series of violations by Khai Duc Company.
According to statistics by the General Department of Vietnam Customs, the company did import fashion products from China and Thailand in 2006-2009. From 2009 to October 15, 2017, the company no longer conducted the activity.
The company had neither produced fashion products nor placed orders with other domestic firms since 2012 but purchased products from businesses, business households and stores in the market and labeled them with “Khaisilk®”, “Khaisilk cach dieu (stylized)” and “Khaisilk Made in Vietnam” for sale.
In addition, the company had showed signs of breaking the Penal Code for trading fake quality goods. Assessment results to some silk product samples of the company showed no silk component while information on the products say they are 100 percent silk.
Moreover, Khai Duc Company had also showed signs of violating Tax and Invoice Management Law as some invoices used by the company were not issued and managed by taxation agencies.
Some invoices had incorrectly declared goods information. There was a difference between on paper and actual data of a huge volume of products at a branch of the company. Khai Duc failed to explain the reason for the difference and fully present invoices of these products.
Some products did not have brands while some had but their brands do not comprise sufficient contents as per regulations.
The company’s website provides incorrect information to consumers. Khai Duc Company had sold unclear origin products.