The 'disguise' of Vietnamese goods

My friend dropped his ear in a very important way, you know, Enterprise A is suspected of selling Chinese household goods "disguised as Vietnamese goods".

I was startled because the same business was living in one of our marketing clubs and I knew it quite well. We even organize a tour of the factory and see their design room, research and development area and home appliance factory.

In the recent time, the topic of Chinese sales enterprises in Vietnam is disguised as a hot topic. But what is "disguised as Vietnamese goods" is a pretty dim understanding, though it is being used extensively.

In this, there are some things we need to understand: firstly, there are a number of enterprises importing goods made in China from the original material to Vietnam to cut production labels in China and to label production in China. In Vietnam, this is a lie about the origin that needs to be condemned and needs to be strictly punished.

The second is the goods that are labeled as made in China or Thailand or Taiwan or neighboring countries, sold in Vietnam but still bearing the Vietnamese brand.

The third is Vietnamese brand goods but the details of raw materials and accessories are imported from China, Thailand and neighboring countries.

So what is the new product called made in Vietnam, Made in Vietnam? Naturally products of pure origin in Vietnam will be recognized as Made in Vietnam products.

For non-pure products, according to Decree No. 43, products which have the final stage of manufacture in Vietnam and can convert HS codes are recognized as products made in Vietnam. What is the conversion of HS codes? For example, Mr. Tran Thanh Hai, Deputy Director of Import and Export Department, Ministry of Industry and Trade, for example, if the enterprise imports flour into Vietnam, the flour has a different code then the enterprise uses flour to produce biscuits. At this time, biscuits are completely changed compared to wheat flour and bearing a different code so the cookie is confirmed to be made in Vietnam although wheat flour can be imported from Europe and other countries. This is similar to chocolate made in Switzerland but cocoa is imported from Africa.

According to the above regulations, 100% Vietnamese-made goods cannot be called Made in Vietnam but are they Vietnamese products? The answer is yes. A Samsung phone is said to be made in Vietnam but everyone knows it's a Korean product, just like a BMW car is said to be made in the US but it's a German product. Similarly, when you see Vietnamese household goods made in China or Korea, it is still a Vietnamese product.

One thing we do not know is that in order to get the final product, even though it is made in foreign countries, Vietnamese enterprises must have the research, development and control of the production process and production standards to ensure quality assurance. Because Vietnam's research and development is still weak, Vietnamese businesses often outsource this part. Production process and standards are also very important, if bringing Japanese standards to apply Vietnamese products production is too good but high costs lead to too high prices unsuitable for the market, if It is sometimes unnecessary to bring the Japanese process into practice as many stages will be redundant due to completely different conditions of product use and weather conditions in Vietnam.

So just looking at the origin of goods made in China or other countries to condemn businesses is wrong, just look at the design, manufacturing, research, development, process and processes. their production standards.

The next question is why brands are not manufactured in Vietnam but imported from abroad? The answer is due to price and market size. If the market size is too small, the brand cannot invest in production lines but import complete units to reduce costs.

My family still buys Vietnamese brand household, electronics and consumer goods whether it is made in China, Thailand or Vietnam because the brand is a guarantee for their goods. If the quality goods of the business are not good, the prices are not reasonable, then those businesses will plummet, regardless of where the goods are manufactured.

In the period of great growth in the global supply chain, we will have little chance to see products of pure origin in a country that tend to see products with ingredients. from many different countries. Therefore, we should not question where the source of raw materials comes from, but rather see where the final production is done, change the HS code, the rate of domestic value increase on the product. .

We cannot demand that a Vietnamese brand's clothing product must have pure Vietnamese origin. We do not have modern weaving technology, so the import of fabric is normal, only as long as the final processing in Vietnam, with a rate of domestic value increase, that clothing product is recognized as a Made in Vietnam.

In a nutshell, the current expression of the "Vietnamese disguise" is being used emotionally - there is no common legal basis or common sense of society about what is "Made in Vietnam". But the introduction of such a concept and being used on a social scale can jeopardize domestic production.

It is dangerous that while the authorities have no specific conclusions about whether the trademark violates or not the labeling of goods made in Vietnam, only by very vague and lacking verification information. On social networks, people can immediately conclude that foreign goods are disguised as Vietnamese goods and attack, even boycott Vietnamese goods. This has resulted in great losses not only for one enterprise but also for many other businesses with similar production models as well as suppliers.

Vietnam longs to have a strong consumer industry, but we lack information in giving consumers the right to damage. Media, however, only provokes nationalist beliefs when it is very easy to lead to extremes.

As for the authorities, due to unclear regulations on domestically manufactured goods circulating in Vietnam, there is no regulation on passing a simple production process and no rate increase rate. However, it is very difficult for domestic enterprises and people to identify what is manufactured in Vietnam.

With the current regulations it is very likely that we will have a car, a phone or a home appliance made in Vietnam but 100% of the details are supplied by foreign suppliers, and businesses do not wrong when that product is manufactured in Vietnam for domestic consumption. What needs to be done is that there is a clear regulation of how domestic products can be made in Vietnam so that businesses and people can easily identify them.

Pham Vu Tung