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|The Khaisilk scandal may result in a hefty sentence for chairman Hoang Khai|
According to newswire VTCnews, the local authorities found that Khai Duc JSC, operated by Hoang Khai or Khaisilk, has violated regulations on trading in fashion products on five counts, one of them being the criminal act of trading counterfeiter products.
Notably, the local authorities found that a number of silk products lack the logo or contain different materials than denoted.
Besides, the company mislead customers by supplying incorrect information about the origins or the material of its products.
According to newswire NDH, 7 of 10 Khaisilk products inspected have incorrect information about the materials. Accordingly, six out of seven products were made either by 100 per cent polyester instead of the 100 per cent silk as labelled, or by 49.9 per cent rayon, 35.3 per cent acrylic, and 14.8 per cent wool instead of the 100 per cent pashmina.
Furthermore, from 2012 to date, the company has been purchasing products from other stores and enterprises or imported from China to then re-label them with “Khaisilk cách điệu” and “Khaisilk Made in Vietnam” to sell to customers.
In addition, the company was found to have committed violations in declaring its business results, showing a difference between the revenue the company declared for tax payment and its real income, without any explanation.
With these violations, Hoang Khai, the chairman of the board of directors of Khaisilk JSC who holds 99 per cent of the company, is facing a sentence of six months to five years of imprisonment, while the highest punishment for these violations may reach up to 15 years.
Besides, the company will have to pay a fine between VND5-50 million ($220,11-2,201), and either a part or the entirety of its assets will be confiscated.
Previously, according to newswire Vietnamnews, on October 30, Minister of Industry and Trade Tran Tuan Anh chaired a meeting with relevant agencies to resolve Khaisilk’s violations of selling "Made in China" products under a Vietnamese trademark.
The scandal broke out after a Khaisilk scarf was found bearing both ‘Made in China’ and ‘Made in Vietnam’ tags at one of the brand’s outlets at 113 Hang Gai Street, Hoan Kiem District, Hanoi.
Anh said the relevant documents have been submitted to the police and a criminal probe has been launched.
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