(PLO)- A Vietnamese company has filed a lawsuit against Amazon and demanded $280 million in compensation for violating its business commitments.
According to the news agency Bloomberg, E-commerce platform Amazon is facing a lawsuit worth $ 280 million from a Vietnamese manufacturer.
Specifically, Binh Thanh Import-Export Production and Business Joint Stock Company (Gilimex, stock code GIL) filed a lawsuit in a New York City court, accusing Amazon of breaching the contract, when the giant suddenly shrunk its number of shares. orders after online spending growth cooled this year. This leaves the manufacturer to suffer from excess production capacity and raw materials.
Before this information, PLO passed through the Amazon contact in Vietnam, to send questions to the corporation. Accordingly, this person said that Amazon Group has information about the incident and temporarily has not made any comment on this matter until there is official information from the company.
Gilimex said it has been an Amazon partner since 2014, investing tens of millions of dollars in manufacturing facilities to build warehouses out of steel and fabric used to organize Amazon’s inventory. These warehouses have delivery robots, labor-free workers thereby speeding up the fulfillment of online orders.
In addition, this company also employs more than 7,000 employees at the factory to produce more than 1 million storage units annually, production for amazon has increased 20 times during its 8 years of service.
According to the 32-page complaint, the partnership was built on “trust” where Gilimex had a longstanding agreement with Amazon about the transparency of reports Amazon made to purchase raw materials. materials, invest in the factory, to meet the needs of this giant.
But in April and May of this year, Amazon immediately changed and reduced project demand. For the remainder of 2022 and 2023 that drop to a very small fraction of the forecast. While previously, Amazon has committed to being a strategic partner and will fully notify Gilimex in advance if it terminates the partnership. As a result, Gilimex accused Amazon of being unfair, breach of contract, and breach of fiduciary duty.
Amazon is currently Gilimex’s biggest customer, with orders worth $146.6 million in 2021.
Information from the news site Bloomberg Gilimex also quoted Gilimex that, because of meeting Amazon’s needs, this unit has ignored other big customers such as IKEA and Columbia Sportswear.
Not only that, during the pandemic, Gilimex also had to relocate production and packaging facilities to resume production amid the COVID-19 outbreak and navigate the government’s safety measures, only for the purpose of fulfilling orders for Amazon.
“So while Amazon enjoyed an unprecedented revenue increase during the pandemic, largely due to an explosion in consumer online ordering, Gilimex management and employees have literally risking his life every day to set that record,” the complaint reads.
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