Name of recommendations: Recommendations regarding sanitary ware products massively imported from China, including household porcelain and sanitary porcelain at a very low price.

Status: Responded

Recommended by units: The Lixil Vietnam Co., Ltd; Viglacera Commercial JSC;The Ceravi JSC; The Hao Canh Porcelain Production and Trading Co., Ltd; The Thanh Hai Porcelain Tiles Co., Ltd; The Long Hau JSC; The Xuan Sinh Production and Trading JSC; The Dong Lam Porcelain Co., Ltd.

Official letter: No 2433 / PTM - KHTH, dated: 2019-10-16

Recommended contents:

From 2016 to the present, sanitary ware products, especially sanitary porcelain and household porcelain, have been imported massively from China into Vietnam market at a low price. This situation has a negative impact on the business operations and manufacturing of the domestic enterprises. Through preliminary investigation, the companies submitted petitions discovered a number of issues related to the products imported in terms of commercial fraud and unclear origin.

1.      Regarding the volume of imports: According to the estimates of the companies that submitted the petitions, in 2016, the total number of sanitary ware products imported from China was 300,000. This figure continues rising at 600.000 products and after and in 2018, the quantity is nearly 900.000 products. The estimated data is expected to reach 1.200.000 products in 2019.  Along with sanitary ware, a large number of household porcelain is also imported to Vietnam’s market at low selling prices.

2.      Regarding selling prices: most products imported from China have relatively lowselling prices, much lower compared to the domestic production costs. Especially, there is a huge difference between the customs declaration value of goods and real value.

3.      Regarding the packaging and labeling: Violating the regulations on packaging and labeling, namely as not stating clear origin, having no brand names on products. Non-branded products after being brought into the Vietnamese market were compressed with new labels to deceive consumers. They are sometimes labeled with domestic brands.

4.      Products imported from China fail to show certificates of quality control, which affects the consumers’ interests.

5.      Foreign individuals get involved illegally behind Vietnamese enterprises to manipulate the market, tax fraud ...

In recent years, domestic manufacturing enterprises have used their budgets to improve production capacity, develop new technologies and create jobs for tens of thousands of workers. However, the unfair and unequal competition with the law violations of organizations and individuals importing poor quality Chinese goods into the Vietnamese market has put many domestic firms in jeopardy. As a result, unemployment can cause social unrest and the disappearance of a business.

Representatives of businesses urgently requested that the Government and related Ministries and branches have regulatory measures in order to create a level playing field for domestic enterprises to stabilize the production situation, and further motivate businesses to invest and develop for the benefits of the nation and society.