The People’s Committee of Dak Mil District in
the Central Highlands province of Dak Nong has recently ordered relevant local
departments and agencies to recommend solutions to prevent the Duc Lap brand of
coffee from being sold to foreign companies.
The
departments and agencies are also asked to evaluate the current operation and
financial state of the Minh An cooperative -- the owner of Duc Lap, the
people’s committee said in its directive.
“China’s
Guangzhou Buon Ma Thuot Coffee Co Ltd has eyed purchasing the Duc Lap brand
name,” said the committee’s deputy chairman, Pham Tuan Anh.
This is
the same Chinese company that has been involved in a dispute with the Dak Lak
People’s Committee over the Buon Ma Thuot coffee brand name, added Anh.
“Earlier
the cooperative had also intended to sell its brand to an overseas Vietnamese
in Australia, but the district people’s committee maintained its view that Duc
Lap should be kept in Vietnam, since it is a local mutual property,” Anh told
Tuoi Tre.
Meanwhile,
Nguyen Van Toan, head of the managing board of the Minh An cooperative, said
the organization has encountered a number of difficulties due to losses.
“We
have no capital for operations left, and we are owe 90 tons of coffee to 115
farmers and VND10 billion ($480,000) to two credit institutions,” said Toan.
The
cooperative decided not to declare bankruptcy since it wanted to keep the Duc
Lap coffee brand, which is protected in Vietnam, China, and the US, he added.
“If we
are granted a VND5-billion loan, the cooperative will transfer its brand to
local authorities without asking for any fees,” said Toan.
He
added that a similar demand was made last March, when the cooperative sought
permission from the provincial people’s committee of Dak Nong to borrow VND5
billion from the provincial Fund for Investment and Development.
The
credit aid would help the cooperative to avoid transferring its brand to
foreign partners, he explained.
“But
the provincial Department of Agriculture and Rural Development told us in their
response that they are not authorized to approve bank loans or brand transfer
activity,” said Toan.
“The
department also asked the cooperative to transfer the Duc Lap brand to local
authorities to develop a mutual brand for Dak Nong province.”
Commenting
on the cooperative’s demand for bank loans to transfer its brand, the district
people’s committee deputy chairman said it will receive the brand at a
negotiable price with Minh An cooperative.
“The
district committee has also called on its provincial counterpart to assist the
cooperative with credit support, but has yet to receive any response,” added
Anh.
While
neither of the cooperative’s problems and demands have been solved, Toan said
the Chinese company has proposed to buy the brand for VND18 billion ($864,000).
“We
have yet to reply to their proposal as we want to keep this brand for the
locality,” said Toan.
The Duc Lap coffee brand emerged in Duc Lap
District of the erstwhile Quang Duc Province, which is now Dak Mil District of
Dak Nong Province, before 1975, and is as well-known as its Buon Ma Thuot
counterpart in Dak Lak Province.
After 1975, though the locality’s names were
changed, Duc Lap remained the local coffee brand of Dak Mil District.
In 2004, the Minh An cooperative was granted
brand registering certifications from the Ministry of Science and Technology’s
Intellectual Property Department.
Tuoi
Tre
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Healthcare and Life Science with expertise in ASEAN. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programmes. Many thanks for visiting www.yourvietnamexpert.com and/or contacting us at contact@yourvietnamexpert.com
No comments:
Post a Comment