Jun 18, 2012

Vietnam - Many Chinese merchants carry out illegal trade activities in Vietnam

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VietNamNet Bridge – Under the Vietnamese laws, foreign merchants are not allowed to collect farm produce and seafood directly from farmers. Meanwhile, Chinese merchants have been present everywhere in the Vietnamese territory to cultivate, collect and fish aquatic creatures and farm produce.

Chinese ships in Vietnamese territorial waters

According to Hoang Dinh Yen, Deputy Head of the Department for Aquatic Resources Exploitation and Protection, to date Vietnamese competent agencies have licensed two Chinese ships to enter the Vietnamese territorial waters to carry the aquatic products collected in Vietnam.

However, he said, one of the licenses has expired, and only one ship still continues the work.

The only one ship left in Vietnam has still been going here and there on the Vietnamese sea. According to the Vung Ro border gate Frontier Post, since 2007, the ship has been docking and leaving the Vung Ro bay 39 times to provide breeding aquatic creatures and collect seafood products. 643 tons of fish have been carried from Vung Ro abroad by the ship.

The noteworthy thing is that Vietnam could not collect tax from the seafood exports.

According to Colonel Nguyen Trong Huyen, Chief Commander of the Phu Yen Border Guard, the Chinese ship which collects fish at Vung Ro bay has the license granted by the Ministry of Fisheries, now the Ministry of Agriculture and Rural Development. The Chinese businessmen collected products in Vietnam but they reported loss. Therefore, Vietnam could not collect tax from them.

This is just the volume of seafood products the Chinese ships purchased at Vung Ro. If counting on the seafood products it collected on the other territorial waters, the total tax sum Vietnam fails to collect from the ship would be very big.

Not only hunting for aquatic produce, Chinese merchants have also been going to the forests, reaching out to rural areas to hunt for farm produce, from pepper, chili to rice, coffee and cashew nuts.

The same trick has been used by Chinese merchants everywhere: at first, they pay very high prices to scramble for products with Vietnamese merchants. After they dominate the market, they would suddenly stop buying or force the prices down, thus making Vietnamese farmers suffer. Especially, a lot of Vietnamese merchants have gotten moneyless, because the collected farm produce cannot be sold to the Chinese merchants who ordered the products.

According to Vo Van Quyen, Director of the Domestic Market Department under the Ministry of Industry and Trade, under the current laws, the foreign businessmen without commercial presence in Vietnam must be licensed by the Ministry of Industry and Trade to implement the right to export products. Especially, the licensed businessmen are not allowed to collect produce directly from farmers, but they must do this via Vietnamese businessmen.

Meanwhile, to date, no foreign businessman or Chinese merchant has made registration at the ministry, while the ministry has not granted any license to foreign businessmen of this kind.

The Chinese merchants who have been collecting farm produce in Vietnam are those, who entered Vietnam with tourism visas. Here in Vietnam, they have been collecting farm produce illegally under the Vietnamese names.

In the southern province of Ben Tre, it is estimated that ¼ of the dried coconut output has been exported to China every year.

According to Nguyen Van Dac, Deputy Chair of the Ben Tre Coconut Association, Vietnamese merchants only can enjoy the commissions calculated on the amounts of products, while the prices are decided by Chinese merchants.

Source: Lao dong


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