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|People go shopping at a Mumuso store in Hanoi. - Photo foody.vn|
As per the instructions of MoIT Minister Tran Tuan Anh, the ministry’s Domestic Market Department will cooperate with related Government agencies to address the shortcomings of the legal framework in place to manage chain stores. The decision comes after the MoIT announced last month that an investigation found that Mumoso Vietnam had violated the law by misrepresenting the origins of its company’s products.
The MoIT concluded that 99.3 per cent, or 2,257 out of the total 2,273 products sold by Mumuso Viet Nam, which represents itself as a Korean brand, were imported from China.
The Domestic Market Department will also study and propose to the ministry and competent authorities policies to increase the efficiency of State management over companies similar to Mumuso Vietnam.
The minister requested the Department of Competition and Consumer Protection, under MoIT, to expeditiously investigate and handle Mumoso’s violations of the Competition Law. The department will also co-ordinate with relevant units to monitor, supervise and evaluate compliance with the competition law and protect the interests of consumers at some enterprises with a business model similar to that of Mumuso Vietnam.
In addition, the MoIT minister also asked the Market Management Department to urgently carry out procedures for handling administrative violations against Mumuso Vietnam and publicise the results. He also directed the Market Management Sub-Departments to review and supervise the operation of chain stores across the country and promptly report to the ministry leaders on any violations.
After debuting in the Vietnamese market in December 2016, Mumuso Vietnam has opened 27 stores nationwide, offering thousands of products in five main areas of beauty, healthcare, fashion accessories, office and home appliances with prices from only VND22,000 (nearly US$1).
Though Mumoso customers are informed that Mumuso’s products are made in the Republic of Korea, the company was unable to provide documents clarifying the accuracy of the information during the MoIT investigation, especially those relating to the origins of products and production technologies, the ministry said.