Khaisilk closes shop in Hanoi after police check
Khaisilk, a premier Vietnamese silk brand which is facing a fake product scandal, has just closed its shop in Hanoi’s Old Quarter shopping area following a check by local authorities on Thursday.
A source told Dantri/DTiNews that an inspection team from the Hanoi Market Management Department and local police came to check a Khaisilk shop at 113 Hang Gai Street and collected 50 products for investigation.
After the inspection team left at 2.30pm, the shop closed and the staff refused to talk with the media and customers.
The investigation was done following a request from the Minister of Industry and Trade, Tran Tuan Anh following a complaint by a customer that Khaisilk was selling made-in-China products.
The minister asked for a detailed report by October 28.
In an interview with Thanh Nien newspaper on October 25, the owner of the famous brand, Hoang Khai, confessed that half of his silk products were sourced from China and sold under the guise of made-in-Vietnam labels.
Khaisilk chairman said that he wanted to apologise to customers for the unclear positioning of his products.
Khai admitted that in the 1990s, when the Vietnamese silk industry began its decline, he was forced to turn to the Chinese market for sourcing beautiful products which he believed could be taken as Vietnamese.
The Khaisilk chairman explained that he thought it was a common practice, saying such brands as Zara and H&M also source products from China and sell under their own brand names to customers worldwide.
He claimed that the practice is ethical as long as product quality is guaranteed.
The chairman, who currently based in Ho Chi Minh City, however, admitted that he has paid little attention to his silk business since the Khaisilk Group began expanding into real estate, restaurants, and shopping centres.
The story of Khaisilk products carrying two labels was first reported by Vietnamese Facebook user Dang Nhu Quynh on October 23.
Quynh said that they bought 60 silk scarves as gifts for his partners from the Khaisilk shop on Hang Gai Street on October 17. The products cost VND644,000 (USD28) each.
“You can clearly see that on the other 59 scarves, the ‘Made-in-China’ label was carelessly removed and a ‘Made-in-Vietnam’ label was added,” Quynh wrote on his Facebook account.
Quynh then filed an official complaint to the company headquarters.
The company’s response, as recounted in Quynh’s post, was to double-down on their claim that all 60 scarves were made from 100 percent silk.
Speaking with the media while inspecting the shop on October 26, deputy head of Hanoi Market Management Department, Tran Hung, said that this is a serious case that had badly affected the prestige of Vietnamese brands among customers, especially foreign customers.
"We're all shocked by this finding," Hung said. "Khaisilk products have long been popular choices for gifts from Vietnam."
Hung said they are co-operating with police to further investigate the case.
Khaisilk shop at 113 Hang Gai Street closes on October 26 afternoon
A source told Dantri/DTiNews that an inspection team from the Hanoi Market Management Department and local police came to check a Khaisilk shop at 113 Hang Gai Street and collected 50 products for investigation.
After the inspection team left at 2.30pm, the shop closed and the staff refused to talk with the media and customers.
The investigation was done following a request from the Minister of Industry and Trade, Tran Tuan Anh following a complaint by a customer that Khaisilk was selling made-in-China products.
The minister asked for a detailed report by October 28.
In an interview with Thanh Nien newspaper on October 25, the owner of the famous brand, Hoang Khai, confessed that half of his silk products were sourced from China and sold under the guise of made-in-Vietnam labels.
Khaisilk chairman said that he wanted to apologise to customers for the unclear positioning of his products.
Khai admitted that in the 1990s, when the Vietnamese silk industry began its decline, he was forced to turn to the Chinese market for sourcing beautiful products which he believed could be taken as Vietnamese.
The Khaisilk chairman explained that he thought it was a common practice, saying such brands as Zara and H&M also source products from China and sell under their own brand names to customers worldwide.
He claimed that the practice is ethical as long as product quality is guaranteed.
The chairman, who currently based in Ho Chi Minh City, however, admitted that he has paid little attention to his silk business since the Khaisilk Group began expanding into real estate, restaurants, and shopping centres.
The story of Khaisilk products carrying two labels was first reported by Vietnamese Facebook user Dang Nhu Quynh on October 23.
Quynh said that they bought 60 silk scarves as gifts for his partners from the Khaisilk shop on Hang Gai Street on October 17. The products cost VND644,000 (USD28) each.
A Khaisilk scalf is found to have both ‘Made in China’ and ‘Made in Vietnam’ labels. Photo from Dang Nhu Quynh Facebook
“You can clearly see that on the other 59 scarves, the ‘Made-in-China’ label was carelessly removed and a ‘Made-in-Vietnam’ label was added,” Quynh wrote on his Facebook account.
A Khaisilk scalf is found to have a label carelessly removed and a ‘Made-in-Vietnam’ label was added. Photo from Dang Nhu Quynh Facebook
Quynh then filed an official complaint to the company headquarters.
The company’s response, as recounted in Quynh’s post, was to double-down on their claim that all 60 scarves were made from 100 percent silk.
Speaking with the media while inspecting the shop on October 26, deputy head of Hanoi Market Management Department, Tran Hung, said that this is a serious case that had badly affected the prestige of Vietnamese brands among customers, especially foreign customers.
"We're all shocked by this finding," Hung said. "Khaisilk products have long been popular choices for gifts from Vietnam."
Hung said they are co-operating with police to further investigate the case.
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