REPORT FROM: MR. VO DINH DANG Commercial Service TO: MR. TRAN THAI HUNG LONG Date: 19/10/2009 C/C: MR. TRAN MANH TAM No: 03/2009/RP MR. ALFONSE FRAMENT REF: SITUATION of COUNTERFEIT GAS in LAM DONG PROVINCE Dear Sir, Last week, I visited to some of gas shops at Di Linh, Duc Trong, Lam Ha, Don Duong district. General, most of them very and very wellcome Elfgaz and Saigongas (not Totalgaz) and there is a glad signal is: more and more gas shops and end-user understand truly about quality as well as prestige of elfgaz. So that, they were interested in safety and insurance program and decided to buy Elfgaz complete cylinder very much. Saigongas was accepted easily with present price (LPG and deposit) and beauty cylinder but the volume was increased slowly because of the lack of cylinder. Totalgaz with the expensive price (compare with V gas, VT gas) and the colour (yellow) of cylinder is very strange to gas shops and end-user. So that, it was developed slowly and difficultly. Situation of counterfeit gas is very complex and strong, more and more it happen publicly and defiantly. MIEN DONG filling station refills all of cylinder of all brand (EGS make up more than). They offer publicly to distributors and gas shops with price the same for every brand. They undertake that they take full legally responsibility and the law is not enough foundation to accuse them. I know that the relation between Mr Tuan ( Mien Dong) and some market control agent very well. So that, some distributor like An Binh ( SGG and TTZ distributor) and gas shops, especially fuel filling station cooperated with MIEN DONG and traded this counterfeit gas. *Note: the wholesale price of elfgaz at Lam Dong: 235.000VND/cyl The wholesale price of counterfeit elfgaz : 205.000VND/ cyl Last week, after I explained with some gas shops and An Binh distributor about the business of counterfeit gas and I advised them that they should stop trading counterfeit gas because of their prestige were affected bad and end-user will ostracise them if they don’t stop. Next day, I received some calling from Mr Tuan Mien Dong with full defiant and intimidatory words. At present, the real distributors and gas shops are very puzzled, they suggest us must have solution for fight again situation of counterfeit gas and protect the true business. In short, fighting counterfeit gas is very necessary in Lam Dong now. Our distributors are suffering pressure from counterfeit gas. They have been waiting for our action for along time. If we don’t have brave actions, I am afraid of elfgaz volume go down and “the ulcer” will spread throughout Lam Dong province. Khanh Hoa province, Long Khanh, Xuan Loc district in Dong Nai province market are symbolic instances I have sum up situation of counterfeit gas at Lam Dong and looking for your feedback! Thank you for your attention! Reporter Vo Dinh Dang . enough foundation to accuse them. I know that the relation between Mr Tuan ( Mien Dong) and some market control agent very well. So that, some distributor like An Binh ( SGG and TTZ distributor). throughout Lam Dong province. Khanh Hoa province, Long Khanh, Xuan Loc district in Dong Nai province market are symbolic instances I have sum up situation of counterfeit gas at Lam Dong and looking