IP takes Japanese enterprise to court

March 26, 2016 | 17:00

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Tan Duc Industrial Park will sue Japanese confectionery producer Tango Candy Co. Ltd. for delayed infrastructure fee payments, according to newswire vnexpress.

The decision is the result of a working session between Long An Provincial People’s Committee and representatives of Tango Candy and Tan Duc on March 25.

In the framework of the working session, Long An Provincial People’s Committee requested Tan Duc IP to remove the barriers blocking Tango Candy’s entrance and to restart supplying water to the company. On the same day, Tan Duc IP agreed to the request.

According to Tan Duc IP’s communication director Tran Duong, although the two parties have yet to reach a compromise on the infrastructure fee, the removal of the barriers is to create a preferential investment environment for Long An Province.

Duong added that the magnitude of the infrastructure fee will depend on the judgement of the court.

Tango Candy director Tango Hirosuke said that the company still maintained that the fee is unreasonably high, which the company refuses to pay as a matter of principle and transparency.

On March 17, Tan Duc IP blocked the entrance and cut off the water supply of the Tango Candy factory because of the company’s delay in paying infrastructure fees.

There are 153 companies operating inside the park, 66 of which are foreign businesses. More than 30 companies have refused to pay the fee of VND10,000 ($0.45) per square metre, which they said to be much higher than the average of VND6,000-8,000 ($0.27-0.36) per square metre charged in other industrial zones in the same province.

Japanese enterprise poised to lose thousands of dollars over fee dispute

Japanese confectionary producer Tango Candy Co., Ltd. is looking back on a hard week. Stagnating manufacturing in the company’s factory in Tan Duc industrial park (IP) in the southern province of Long An due to a conflict on fee payments is making the company lose $15,000 per day.

By By Ha Vy

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