Vietnam Targets Counterfeit Market Amid US Trade War Fears
Collected Photo
Vietnamese authorities are aggressively raiding black-market hubs to shed the country’s reputation as a global center for fake designer goods.
Following a nationwide crackdown launched on 7 May, police recently seized more than 23,000 pairs of counterfeit slippers - falsely bearing Nike, Adidas, Crocs, and Gucci logos - from two warehouses in Ho Chi Minh City. This single operation netted goods valued at around $76,053.
International Pressure and Economic Targets
This surge in enforcement follows a report from the Office of the US Trade Representative, which designated Vietnam a “priority foreign country” due to long-standing failures in intellectual property (IP) protection.
This marks the first time in 13 years that the nation has received this designation. Fearing fresh tariffs from US President Donald Trump’s trade war, Vietnamese officials pledged to increase IP violation busts by 20 percent in May compared to last year.
Major hubs like Ben Thanh Market and Saigon Square recently faced surprise inspections, resulting in $19,000 in fines.
On 10 June, police in Thanh Hoa province dismantled a massive ring that produced 10,000 fake jewelry pieces imitating brands such as Bvlgari, Cartier, Louis Vuitton, and Tiffany & Co. That syndicate generated an estimated $1.14 million in illicit profits.
Impact on Vendors and Consumers
Thanh Truc, a vendor at Saigon Square, noted that “Enforcement has become stricter.” However, she explained that local sellers often stay ahead of the raids, stating, “Usually, before inspectors arrive, someone here blows a whistle to warn everyone.”
She confirmed that despite the blitz, “business is still continuing” and “Some stores display fewer logo-branded items, but they still have stock in the back.”
Local designer Thi Nguyen welcomes the crackdown, arguing that the counterfeit industry makes the retail market “chaotic”.
She said, “I feel more confident operating in a business environment that is cleaner, more transparent, and fairer.” She added that the move is “about restoring fairness and putting right and wrong, genuine and fake, back into their proper place.”
Conversely, many locals rely on these products due to an average monthly income of just $225. Huy, an office worker in Da Nang, told the BBC he prefers fakes because they are “cheap, convenient and easy to buy.”
He noted, “If counterfeit goods cannot be completely stamped out, and I can still easily buy them, I will maintain my old habits.”
Persistence of the Shadow Economy
Authorities handled more than 1,400 IP infringement cases in the final weeks of May. Despite these efforts, Associate Professor Thi Thanh Huong Tran of SKEMA Business School suggests the market will persist because the supply chain remains rooted in China and relies on Asian manufacturing expertise.
She believes the demand will always remain, asserting, “You cannot eliminate it.” She concluded that “Whatever regulation or actions the government will take, they will find a way to go around it and continue - because the demand of the customers is always there... And if there is the demand, of course, there will be the seller.”
Source: BBC (adapted)
