Counterfeit Goods: A Tough Escape

On June 18, at a press conference for the second quarter of 2025 held by the Ho Chi Minh City Department of Industry and Trade, Mr. Nguyen Quang Huy, Deputy Chief of the Market Management Department, informed that after a month of intensive inspection and handling of counterfeit and smuggled goods (from May 15 to June 15), the market management force had detected and handled 137 cases of violations. This number decreased by nearly 70% compared to the same period last year, but the worrying issue is that the violations are becoming more sophisticated, targeting essential goods that directly affect community health.

Increasingly sophisticated violations

The commonly counterfeited and pirated goods include functional foods, beauty cosmetics, and foods of unknown origin. The violations did not decrease in nature but became more sophisticated, making detection and handling more challenging. Some typical cases include the seizure of over 4,300 packages of vegetarian food products such as vegetarian duck and vegetarian beef jerky without labels or expiration dates in Binh Tri Dong ward, Binh Tan district, Ho Chi Minh City. In An Lac ward, also in Binh Tan district, the authorities discovered a batch of 2,000 kg of dried red apples without packaging, original labels, or production information.

According to Mr. Huy, one of the current “hot spots” is the trading of counterfeit and pirated goods through e-commerce. “The perpetrators often hide their identities, leaving no transaction traces, using slang, or off-platform messaging applications to communicate with customers. They livestream their sales in one location but store the goods elsewhere, even in alleys or private apartments, to avoid inspections,” said Mr. Huy.

Moreover, counterfeits are now designed and packaged so intricately that consumers find it challenging to distinguish them. “Many people buy counterfeit goods because they are cheaper and choose to use them without complaining, unintentionally aiding these illegal acts,” Mr. Huy shared.

According to Mr. Huy, the Ho Chi Minh City Market Management Department is studying the application of artificial intelligence (AI) and big data to filter and detect acts of advertising and selling counterfeit and smuggled goods on social media and e-commerce platforms. This will enable them to conduct more focused inspections and provide early warnings.

A report from the Department of Market Management and Domestic Market Development under the Ministry of Industry and Trade also showed that after a month of intensively combating smuggling, trade fraud, counterfeiting, and intellectual property rights infringement, market management forces nationwide had inspected 3,891 cases, detected and handled 3,114 violations, and settled over VND 63 billion in fines. The administrative penalty surcharge exceeded VND 32 billion, and the value of confiscated goods was nearly VND 31 billion, with almost VND 36 billion collected for the state budget.

Notably, 26 cases with criminal signs were transferred to investigative agencies, a 50% increase compared to the same period last year. Analyzing the structure of violations reveals that counterfeiting and intellectual property rights infringement account for the largest proportion, with 1,580 cases, equivalent to 52% of the total, resulting in a surcharge of over VND 16 billion. This is followed by 648 cases of smuggling, accounting for more than 21%, with a surcharge of over VND 6 billion.

Mr. Tran Huu Linh, Director of the Department of Market Management and Domestic Market Development, stated that they would continue to direct the market management forces nationwide to intensify inspections of counterfeiting and intellectual property rights infringement to protect consumers’ rights and create a transparent and healthy business environment.

Opportunities for legitimate businesses

From a business perspective, Ms. Nguyen Binh, Chairman of the Board of Directors of Nguyen Binh Production Trading Service Joint Stock Company, believes that tightening control over counterfeiting and piracy is a great opportunity to purify the market and create favorable conditions for legitimate businesses to thrive.

She shared that the market for rice noodles and pho in Vietnam is very promising, but there are still many challenges in terms of traceability and quality control. “Nguyen Binh Company commits to not using chemicals and sells products at VND 15,000 per kg. Meanwhile, many places offer them at only VND 6,500 per kg, making it difficult for clean products to compete,” said Ms. Binh. In addition, some intermediaries have been mixing low-quality products and labeling them as “Nguyen Binh Bun,” severely damaging the company’s reputation.

To counter this, the company has launched a direct sales program, delivering products directly to consumers from 1 kg, along with promotions such as buy-two-get-one-free to encourage trial of their clean products. “I support heavy penalties for counterfeiting and piracy because these acts endanger community health,” Ms. Binh affirmed.

Mr. Huynh Van Phap, Vice Chairman of the Board of Directors of Bien Hoa Consumer Goods Joint Stock Company, also emphasized that controlling counterfeiting, especially on e-commerce platforms, is crucial for the development of legitimate businesses. However, this process should be linked to market surveillance, quality inspection, and the licensing procedure.

According to Mr. Phap, transparent traceability is the “passport” of a product. “We apply technology to trace each batch of goods. Today’s consumers look not only at the product but also at the values and transparency of the business,” he said.

Dr. Vo Tri Thanh, Director of the Institute for Brand and Competition Strategy Research, also stated that businesses need to control quality from the source throughout the entire supply chain to ensure that goods released to the market meet the standards.

It is essential to create a fair business environment and strictly handle acts related to counterfeiting and trade fraud. In addition, counterfeiting control should be a regular practice rather than a sporadic effort. “The Prime Minister once said: Counterfeits thrive only when officials lose their fighting spirit or are bribed. We must stop these acts at their roots,” Mr. Thanh emphasized.