Adidas is being questioned by authorities who suspect the companies have
been dodging laws to retail goods.
According to the Ho Chi Minh City
Planning and Investment Department, Adidas Vietnam was licenced to operate as
an importer and wholesaler. However, many analysts claim Adidas has been
retailing goods by investing in more than 50 retail outlets through investments
in equipment and exclusive product distribution.
The government’s Decree
23/2007/ND-CP on the activities of buying and selling goods stipulates that
wholesaling is the activity of selling goods to traders and other institutions,
which do not include the sale of goods directly to consumers - the end-user.
Meanwhile, retailing is defined as the activity of selling goods directly to end-users.
Le Thi Thu Huong, deputy head of
the Ho Chi Minh City Department of Taxation, said there was agreement between
Adidas and retailers that Adidas provides shelves, wardrobes, furnishings to
retailers, but the retailers must not re-lease or sell to the third parties in
any forms.
Meanwhile, expenses on the
furnishings provided to the retailers have been taken into account as sale
expenses.
It was also said that Adidas and
retailers signed contracts under which the retailers act as sales agents for Adidas
with the sale prices set up by Adidas. This raises the specter that retailers
act as the hired workers for Adidas. For these reasons, experts believe that
Adidas has tried to put its hand into the retail sector in Vietnam.
VIR contacted Adidas to seek
comments on the information, but the firm refused to answer questions.
Nguyen Hiep, a lawyer from the Ho
Chi Minh City Bar Association, said that Adidas had violated the laws when they
carry out the business types which have not been registered.
Lawyer Nguyen Thanh Tuan from the
Dong Nai provincial Bar Association also said according to Decree
06/2008/ND-CP, if enterprises carry out the unregistered types of business,
they would be imposed the fine of VND1-3 million. The fines are too low to
deter violators, because the sums are minor compared to the potential profits
for violators.
Trang Bac | vir.com.vn
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