The business form of Golden Dragon Company is illegal.
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Mr. Dao Trong Dung - Head of the Department of Food Safety and Hygiene (Department of Health):
According to Circular No. 08/2013/TT-BYT dated March 13, 2013 of the Ministry of Health, soy milk products are foods fortified with micronutrients, must register the content when advertising (Article 2, Chapter I) and must have a certificate of advertising content issued by the Department of Food Safety and Hygiene (Ministry of Health) (Article 5, Chapter II). In addition, before organizing seminars and conferences to introduce food, organizations and individuals must send registration documents to the Food Safety and Hygiene Sub-Department in the area where the seminars and conferences to introduce food are planned to be held (Article 9, Chapter II). However, Rong Vang Company did not go through the Food Safety and Hygiene Sub-Department of Nghe An province but still organized product introduction conferences in the districts, which is against the regulations. In addition, in the document of the Provincial Women's Union (Official Dispatch No. 64/- PV) it is stated that "this product is very popular with consumers, very good for health, especially for women and children" which is advertising in nature, not in accordance with the functions of the association.
Mr. Duong Minh Duc - Head of the Department of Propaganda and Taxpayer Support (Nghe An Tax Department): According to Point e, Clause 1, Article 10 on "Value added tax declaration": "In case a taxpayer has construction, installation, and itinerant sales business activities without establishing a subsidiary in a different province-level locality where the taxpayer has its head office (hereinafter referred to as construction, installation, and itinerant sales business outside the province), the taxpayer must submit a tax declaration to the Tax Department managing the locality where the construction, installation, and itinerant sales activities are located. For example, Rong Vang Company, which has its head office in Hanoi and does not have a distribution agent in Nghe An but goes directly to the districts to sell products, the Company must register for tax and pay tax at the Tax Departments of the districts. However, according to our inspection of the Tax Departments of Dien Chau and Do Luong districts - where Rong Vang Company introduced and sold Van Xuan soy milk products, this company did not register and pay taxes there. So it can be confirmed that this company has hidden behind the Women's Union at all levels to evade taxes".
Ms. Tran Thi My Ha - Head of Trade Management Department (Department of Industry and Trade): In 2012, Golden Dragon Company issued an official dispatch, along with the directive document of the Vietnam Fatherland Front Committee - Steering Committee of the Campaign "Vietnamese people prioritize using Vietnamese goods" in Nghe An province, requesting the Department of Industry and Trade to create conditions for the Company to introduce its products in the province. The Department of Industry and Trade also issued a document "requesting the People's Committees of districts, cities and towns to create conditions for Golden Dragon Company to approach to introduce and sell its products; Golden Dragon Company is responsible for the plan to introduce and sell its products as well as the quality of its products".
However, I personally feel very concerned because the sales style of this company is similar to a form of multi-level marketing, through organizations from the province down to the district, commune and grassroots branches. On the other hand, although this company organized product introduction conferences in the districts and the province in 2012 with the coordination of the Provincial Fatherland Front Committee, it did not go through the Department of Industry and Trade to be granted a Certificate of Confirmation of Food Advertising Content, contrary to Circular No. 40 on "Regulations on granting certificates of confirmation of food advertising content under the management responsibility of the Ministry of Industry and Trade".
Minh Quan - My Ha (recorded)