Businesses have a headache because exported goods are smuggled into the market

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Production activities of Nobland Vietnam Co., Ltd. Photo: Le Tuyet
Production activities of Nobland Vietnam Co., Ltd. Photo: Le Tuyet

Having difficulty with goods being smuggled out

The most recent loss of export goods occurred at Nobland Vietnam Co., Ltd., 100% Korean capital (District 12, Ho Chi Minh City). According to feedback from Nobland Vietnam Co., Ltd. at a meeting with the Ho Chi Minh City Labor Confederation and Ho Chi Minh City Export Processing Zone – Industrial Park Union (Hepza) on May 10, although the factory has cameras installed There were many security forces and access controls, but about 3,000 shirts (export goods) at the completion stage were still taken out of the domestic market. This business spent 70 million VND to buy back from sales shops.

Similarly, a representative of S.H Vina Company in Ho Chi Minh City said that the company specializes in making garments for export, not selling domestically, but occasionally finds unexported clothes being sold outside. Although the Board of Directors has repeatedly reviewed the entire production process, warehouse management, and how to get goods out of the gate, no loopholes have been discovered. Unable to stop it from the root, the leaders decided to set up a team to specifically scan shops to recover smuggled goods.

Regarding this situation, Mr. Pham Xuan Hong, Chairman of the Ho Chi Minh City Textile – Garment – Embroidery – Knitting Association, said that businesses let their products leak out, which violates the terms of product confidentiality, which is causing businesses not only to lose money but also to damage their reputation with partners. Therefore, businesses need to tighten control over goods and at the same time educate workers to understand the consequences of arbitrarily sending goods out. Because customers discover that products have been put out for consumption, businesses face risks such as being fined by customers, partners, reducing prices, or even canceling entire orders and terminating cooperation…

According to Mr. Nguyen Thanh Do, Head of the Legal Policy Department, Ho Chi Minh City Labor Federation, the situation of factories losing goods and export products being smuggled out is not unique. Depending on the quantity lost, each business has a different way of handling it. Businesses that suffer repeated, large amounts of damage often choose to notify the police to track down and completely resolve product theft cases.

Confused of “surplus export” goods

Not only facing the fear of losing goods, businesses producing export goods are also insecure about the increasing appearance of surplus sales points (exported Vietnamese goods)… from stores selling directly to online sites. This phenomenon is because sellers understand the psychology of buyers, they think that exported goods are genuine, quality is guaranteed, while the price is also moderate.

Ms. Vo Thao Nguyen, an administrative employee of a technology company in District 2, said that she often buys “surplus exports” clothes at a familiar store that specializes in selling Vietnamese exported goods online. However, Ms. Nguyen was often confused about whether the product she chose here was truly an export product or not.

Through discussions with export businesses, it is known that the so-called surplus export items include not only clothes but also shoes and household appliances. All store owners believe that the reason they have surplus goods to sell is because they have connections with employees inside the factory to smuggle the goods out. Or, products that do not meet standards are returned, then the company sells them out to remove the antlers.

Mr. Pham Xuan Hong said that most of Vietnam’s exported goods being sold on the domestic market are fake and counterfeit brands. Because exported products all have information about the place of production, clothes are also identified through fabric, thread, and raw materials. Besides, ordering houses have very strict regulations on suppliers (manufacturers) of clothing and footwear products, especially with famous brands. Bringing goods to market is not simple.

Mr. Kim Vinh Cuong, Vice Chairman of the union of Pouyuen Vietnam Co., Ltd., said that the factory once had hundreds of pairs of shoes stolen, all of which were export goods. Due to the large quantity of goods, the company raised the issue of having a hotline and reported it to the police. The police investigated the whole network with connections between people in the factory, the fleet of vehicles entering and leaving the company, and the security guards. After the incident, the company installed cameras in many areas, rotated guards continuously, and rotated shifts regularly to avoid connecting and creating lines.

Therefore, it is not easy for consumers to buy surplus goods exported by businesses to the US, EU or Japanese markets as the stores are advertising. If there are actually surplus products sold on the market, the quantity is not much, most of them are defective products or do not conform to Vietnamese size standards.

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