Business
Khaisilk accused of selling fake silk products
  • | tienphong, dtinews.vn | December 13, 2017 02:30 PM
 >>  Khaisilk passes off Chinese silk scarves as domestic products
The Ministry of Industry and Trade has concluded that some of the products under the Khaisilk brand contain no silk and have transferred the case to the police.

The ministry has completed the report on Khai Duc JSC's operation and fake and low-quality products scandal.

Statistics from the General Department of Customs show that Khai Duc JSC had imported products from China and Thailand from 2006 to 2009. However, it stopped import activities after that. Since 2012, it hasn't had any manufacturing activities and only buys products from other businesses. After that, it attached Khaisilk labels to those products.

  

The Khaisilk scarves with signs that Made in China labels had been removed


According to the ministry, Khai Duc JSC violated the law as results from the textile products quality inspection show that there is no silk even though the labels claim the products are made 100% from silk.

Representatives of the ministry said, "We have directed other agencies to transfer the data to the police to investigate the case. We'll keep monitoring and deal with Khai Duc JSC's wrongdoings in accordance with the law."

In late October, Khaisilk, once regarded as Vietnam’s hi-end silk brand, was revealed to import cheap Chinese silk scarfs. The scarfs worth VND30,000 (USD1.36) were sold for ten times that price after having new made-in Vietnam labelling added.

The company’s fraud was brought to light after a scarf in the Hang Gai shop in Hanoi retailing for VND644,000 (USD28) had two labels reading Khaisilk Made in Vietnam and Made in China. The brand’s owner, Hoang Khai, later admitted that half of the silk used by Khaisilk came from China, while the remainder came from Vietnamese craft villages. But he was adamant that his company always used high-quality materials.

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