- News in Vietnam
- 27 September 2021
An FDI Dutch enterprise reported being asked to stop production by the local government without specifying the reason
The Dutch Embassy has just sent a written request to the City People’s Committee. Can Tho considers the Can Tho Industrial and Export Processing Zone Authority (CEPIZA) to request The Fruit Republic Can Tho One Member Co., Ltd (Dutch FDI enterprise) renting land in Hung Phu 1 industrial park to stop production but did not specify the reason.
Accordingly, the Embassy of the Netherlands said that The Fruit Republic Can Tho Company Limited (referred to as TFR) is a Dutch-owned company headquartered in Can Tho.
The company is one of the primary and preferred suppliers of fresh fruits and vegetables to supermarket chains in Vietnam, including Saigon Coop, Big C, Lotte Mart, and AEON supermarket chains.
TFR Company is currently the largest exporter of fresh fruit from Vietnam to the European market, thereby ensuring a significant market share of Vietnamese fruit and contributing to the reputation of fresh fruit. Thousands of local farmers supply the Mekong Delta region to the company under contract.
Since the outbreak of the COVID-19 epidemic, TFR Company has also joined hands to provide free fresh fruits and vegetables to people in epidemic areas in Ho Chi Minh City and Can Tho.
The Embassy of the Kingdom of the Netherlands received information that the TFR Company may be forced to close by CEPIZA, although CEPIZA itself has previously confirmed that the TFR Company has been fully complying with the conditions, regulations, and claims. The local government issues measures to prevent the spread of COVID-19. Moreover, the Embassy also found that TFR Company also complied beyond expectations to ensure security and health safety for hundreds of officers and employees and ensure maintenance activities of the company and thousands of farmers participate in supplying the company.
In addition, the document of the Embassy of the Kingdom of the Netherlands also states: “It is clear that the risks in the medium and long term are that other companies are not assured to continue doing business and investing in Vietnam. In the Mekong Delta region, this will erode the region’s economic development and adversely affect Vietnam’s reputation in the international arena as a reliable trade and investment partner.
Talking to Nhadautu.vn, Vice Chairman of the City People’s Committee. Can Tho Nguyen Van Hong said the City People’s Committee. Can Tho received the above document from the Dutch Embassy and directed the “three on-site” production inspection teams to inspect this enterprise to make an appropriate decision.