Authority orders investigation on Khaisilk Corp’s silk scarf labeled “Made in China”

By Minh Anh - Oct 27, 2017 | 06:57 AM GMT+7

TheLEADERThe Minister of Industry and Trade Tran Tuan Anh has requested the Market Surveillance Agency to coordinate with the Consumer Protection Division under the Vietnam Competition Authority to investigate, review and clarify the information on Khaisilk Corp (Khaisilk)’s silk scarf, which was labeled both "KHAISILK - Made in Vietnam" and “Made in China".

Authority orders investigation on Khaisilk Corp’s silk scarf labeled “Made in China”
A scarf bought from Khaisilk store has label cut at the edge. Photo: Facebooker Dang Nhu Quynh

The Minister requested that in case of signs of violations related to the origin of goods and counterfeit goods, these agencies must immediately propose solutions. These agencies are also requested to urgently report to the Minister Industry and Trade before October 28, 2017.

Previously, on October 23, facebooker Dang Nhu Quynh complained to purchase Khaisilk’s silk scarf labeled "Made in China".

Accordingly, on October 17, company V. - Quynh’s family company, ordered 60 silk scarves at price of VND 644,000 (roughly US$28.39) per piece with total amount of VND 38,640,000 (equivalent to US$1,703) at Khaisilk store (113 Hang Gai, Ha Noi).

However, after receiving the silk scarves, the company found that one scarf was labeled both "KHAISILK - Made in Vietnam" and "Made in China". The company checked all 60 scarves and found many scarves had labels cut at the edge.

Company V. requested Khaisilk store at 113 Hang Gai to clarify issues as: "These silk scarves are either under Khaisilk’s brand or made in China? What is the real material of which silk scarves are made? Why is a scarf labeled both "KHAISILK - Made in Vietnam" and "Made in China"?

At first, Khaisilk tried to defend that all silk scarves are under the Khaisilk’s brand and made of 100 per cent of silk. Regarding the scarf was labeled both "KHAISILK - Made in Vietnam" and "Made in China, when packing, the warehouse staff found lack of one scarf, he/she took the other on the sewing machine, which was being produced for the other customer without inspection.

Khaisilk argued that the scarf taken for replacement was under 350-scarf order produced to Khaisik’s customer, Design GO in Hong Kong. Design GO required 350 scarves to be labeled "Made in China" due to the import procedures.

However, Khaisilk’s answers did not make the company V. pleased, many facebookers also expressed their doubts about the quality of Khaisilk’s luxury silk scarves.

After keeping quiet for several days, Hoang Khai, founder and owner of Khaisilk, on October 25, officially spoke to the press and admitted selling silk scarves imported from China since the 1990s. At the same time, Khai apologized customers and promised compensation if customers would return the products.

According to Khai, Khaisilk will be crippled after years of brand development; however, Khaisilk will bear its self-inflicted blunder and take its responsibility.