VietNamNet Bride – Chinese businessmen have been, through
different ways, doing trade illegally in Vietnam, thus causing chaos to the
market and ravaging the agricultural production. This has been attributed to
the loopholes existing in the Vietnamese laws.
Vo Van Quyen, Director of the
Domestic Market Department of the Ministry of Industry and Trade, said Chinese
businessmen come to Vietnam as travelers, but they collect farm produce to
carry to China, affirming that this is an illegal activity in the Vietnamese
territory.
Easy regulations clear the way for Chinese to Vietnam
Dinh Tien Phong, Deputy Director
of Hathaco, a farm and seafood produce processing company, said most of the Chinese
businessmen come to Vietnam to collect farm produce with an aim to collapse the
Vietnamese market.
In fact, with similar
geographical conditions, all the plants grown in Vietnam can also be grown in
China.
China’s Hainan Island, for
example, is well-known as a big chili growing land, while Chinese businesses
regularly export chili to South Korea. However, Chinese businessmen still came
to Vietnam to collect chili. Why did they accept to pay the high price of
30,000 dong per kilo to buy Vietnam’s chili, while Vietnamese enterprises only
paid 20,000 dong?
In fact, Chinese businessmen
offered high prices just to encourage Vietnamese farmers to grow more chili.
After that, they disappeared from the market, leaving Vietnamese farmers with
the unsold chili.
Ngo Van Chanh, Deputy Director of
Chanh Thu Fruit Import-Export Company in Ben Tre province, said Chinese
businessmen well understand the problems of Vietnamese farmers, who just make
transactions with verbal agreements instead of signing contracts. Therefore,
they can easily swindle Vietnamese farmers and welsh on their debts.
The government’s Decree No. 90
clearly shows how to treat the foreign businessmen with no presence in Vietnam.
However, to date, such businessmen have not appeared in reality.
Since the decree took effect in
2007, no foreign businessman has registered their business at the Ministry of
Industry and Trade’s Import-Export Department or provincial industry and trade
departments.
Most of the Chinese businessmen
came to Vietnam with tourism visas. In Vietnam, they collected farm produce and
then assume the names of Vietnamese businessmen to carry the produce back to
China across the border gates.
The out-of-date decree
Under the Decree No. 90, the
foreign businessmen with no presence in Vietnam are referred to the ones who do
not make direct investment in Vietnam in accordance with the modes stipulated
in the Investment Law and Commercial Law. The businessmen do not have
representative offices or branches in Vietnam as stipulated by the Commercial
Law.
The businessmen, if wanting to
collect goods in Vietnam, must register for the import-export right at the
Vietnamese competent agencies.
However, as Professor Vo Tong
Xuan, a well-known agriculture expert in Vietnam, no one would be foolish
enough to register to the competent agencies if he really plans to make
deceitful trade.
It would be better for Chinese
businessmen to act as travelers to come to Vietnam, which allows them to ease
the administrative procedures, and then collect farm produce with the
assistance of Vietnamese merchants.
In case the businessmen are
discovered by the competent agencies, they would be easily escape punishment,
because Vietnamese farmers cannot show any documents, invoices or contracts, to
prove their behaviors.
“Therefore, the requirement on
making registration at provincial industry and trade departments proves to be
nonsensical,” Xuan said.
Compiled by Thu Uyen
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