Vietnamese suppliers call Czech furniture distributor fraud

August 15, 2016 | 11:35

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Czech furniture distributor Global Home S.R.O. has allegedly piled up millions of US dollars in debt towards Vietnamese suppliers.

According to news site vietnamnet.vn, at the moment at least three Vietnamese companies have submitted documents asking the police to get involved in their dispute with Global Home.

Furniture maker Gia Han Ltd. was the first. According to Nguyen Huu Ngoc, the company’s representative, Gia Han signed a contract with Global Home to supply furniture for export.

Between April and July of 2015, Gia Han manufactured $490,000 worth of products, which Global Home received but did not pay for. Gia Han also made another $280,000 worth of products for order, which Global Home checked for quality and approved for export, but then left in Gia Han’s warehouses.

Ngoc said that Gia Han asked to meet Global Homes CEO Otto De Jager many times but the latter refused, even asking Gia Han to pay a fine of $250,000 for “not delivering the products in the correct manner,” Which Gia Han promptly refused.

State-owned Vinafor Danang Wood Processing Enterprise also accused Global Home of fraud recently. Similar to Gia Han’s case, Global Home also left $200.000 worth of products that it already approved for export in the company’s warehouse.

The third company, Viet My Import Export Wood Co., Ltd., did not sign a contract with Global Home, “because of a few successful transactions through emails,” according to a company representative. In 2012 Global Home refused to pay for $66,000 worth of products, saying that the delivery was not on time.

The representatives of these companies said that there are other companies in Vietnam that are in the same situation.