Feb 27, 2012

Vietnam - Local partner moves to make a spectacular slap on BigC

The French-invested retailer BigC last week received a heavy slap from one of its Vietnamese partners.

Tasco Thien Truong Joint Stock Company, based in Nam Dinh province, forced BigC to close its 4,300-square metre supermarket in Nam Dinh city for one day by placing a 35-metre long crane at the shopping centre’s main gate and a excavator at the auxiliary gate.

EB Nam Dinh Company Limited, on behalf of BigC, and Tasco opened this $4 million supermarket in early January, 2011. This BigC’s 14th supermarket in Vietnam sits on land owned by Tasco.

A source from BigC Thang Long in Hanoi said that although the supermarket had been functioning since January 2011, some of the procedures for the BigC-Tasco cooperative effort have not been completed and some matters required additional negotiations.

“However, instead of negotiating, Tasco decided to park large pieces of construction equipment at the entrances of BigC. This was an illegal action and one that was unhealthy in terms of business. It must be said that the provincial authorities welcome BigC’s business presence in Nam Dinh,” the source said.

“BigC is not in the wrong and we have and will continue to abide by all Vietnamese laws,” the source stated. The source did not comment on when the remaining procedures would be completed. But it said that BigC would not be intimidated by such extreme and untoward action by Tasco because BigC is a “large business enterprise with extensive business experience.”

“This is the second time that Tasco has attempted to do a nasty trick to BigC. The first time Tasco attempted to do the same thing but we stopped them,” the source said.

Local media quoted a Tasco representative as saying that EB Nam Dinh had intentionally delayed completing necessary procedures which would result in the supermarket site being transferred to EB Nam Dinh. In addition, it was charged that EB Nam Dinh interjected a number of items that were not in the original agreement between the two sides even though the supermarket had been operating on EB Nam Dinh’s land for more than one year.

The BigC Thang Long source argued: “Tasco should think about why the final procedures have been delayed. It must bear responsibility for this uncomfortable situation.” Further negotiations between the parties would take place.

Khoi Nguyen | vir.com.vn |

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