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Vietnamese businesses act on preconceptions and not on facts: experts

05/09/2016 13:40

Many Vietnamese businesses suffer bitter failures because they make bad decisions when choosing partners.

 

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Global Home’s representative Otto De Jager and his wife

Many companies have denounced Global Home, a company with head office in Czech Republic, for repudiating its debts and have reported the debt to the police. 

Gia Han Company, one of the companies, affirmed that Global Home has not paid debt of $493,000 which is payment for its products.
The legal representative of Global Home is Otto De Jager, of Czech nationality, well-known in Vietnam as the husband of Thu Minh, a famous pop singer.
Nguyen Huu Ngoc, the representative of Gia Han, said Gia Han understood that some provisions in the contracts may put Gia Han at a disadvantage. However, Gia Han still decided to sign the contracts because it believed that Thu Minh, the famous singer, would not commit wrongdoings which may spoil her prestige.
Thu Minh is the wife of Global Home’s representative. The singer turns up before the public with luxury branded handbags and cars, while she reportedly has bought apartments worth millions of dollars.

"Many companies have denounced Global Home, a company with head office in Czech Republic, for repudiating its debts and have reported the debt to the police."

 

 

 

 

 

Vu Anh Duong, secretary general of the Vietnam International Arbitration Center (VIAC), said it was still too early to say who is right and if there is the behavior of swindling the partner in this case. However, he affirmed that the Vietnamese business will be at a disadvantage if it raises the lawsuit.

Under the contract signed by the two sides, any dispute will be brought to the arbitrators in Hong Kong. This means that Gia Han will have to spend big money on lawyers, travel fees and pay to arbitrators.
In general, the cost to have disputes to be settled at the Vietnamese arbitration center is just equal to 21 percent of the cost at ICC (International Court of Arbitration) and 51 percent of the cost at the Hong Kong International Arbitration Center (HKIAC).
Lawyer Tran Tuan Anh from Minh Bach Law Firm commented that in case Gia Han wins the case, it will have to contact the enforcement agency in Czech Republic to have the verdict implemented.
“This will be a very complicated procedure that not all Vietnamese enterprises can follow,” he said.
Do Xuan Tung, director of Nhan Viet Consultancy & Training Company, commented that there were some differences in business culture followed by foreign and Vietnamese businesses.
Vietnamese businesses would sign contracts if they feel they can believe the partners. 
“They (foreign businesses) will do business with you though you are not their friends. But Vietnamese must be your friends before they do business with you,” he commented.
Tung went on to say that Vietnamese like doing business with the rich and famous.

Vietnamnet.vn

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