Vietnam has intensified enforcement against counterfeit goods and intellectual property violations after the United States identified the country as a Priority Foreign Country for weak IP protection. Authorities launched a nationwide crackdown on May 7 covering counterfeit products, trademark infringements and online piracy.
The campaign followed an April report from the Office of the United States Trade Representative that placed Vietnam in the highest warning category under the Special 301 process. It was the first time in 13 years that any country had received the designation.
Vietnam pledged to increase detection of counterfeit imports and other IP violations by at least 20% in May compared with the same period last year. On May 29, the USTR opened a Section 301 investigation into whether Vietnam’s IP practices are unreasonable or discriminatory and harmful to U.S. commerce.
Raids Target Markets and Warehouses
Police in Ho Chi Minh City earlier seized more than 23,000 pairs of counterfeit slippers carrying the logos of Nike, Adidas, Crocs and Gucci. The goods were found in two warehouses outside the city and were valued at about 2 billion dong, or roughly $76,000.
Authorities have also focused on Saigon Square and Ben Thanh Market, two well-known shopping areas for counterfeit luxury goods. Between May 7 and May 20, Ho Chi Minh City market surveillance officials handled 138 cases involving counterfeit trademark products and IP violations.
In those two market areas alone, officials handled 71 cases, seized 1,574 counterfeit products worth more than 431 million dong and issued fines exceeding 307 million dong. State media reported that seized goods included fake watches, handbags, sunglasses and fashion items bearing brands such as Gucci, Ray-Ban and Adidas.
A separate June raid in Thanh Hoa province dismantled a counterfeit jewellery operation accused of producing and selling more than 10,000 items imitating brands including Bvlgari, Cartier, Louis Vuitton and Tiffany & Co. The ring allegedly generated about $1.14 million in illicit profits.
Demand Remains Strong Despite Enforcement
Counterfeit goods remain widely available in tourist markets and local shopping areas. Vendors told the BBC that some shops now display fewer logo-branded items but keep stock stored elsewhere.
Many counterfeit products sold in Vietnam are sourced from China and distributed through wholesalers before reaching smaller traders. The supply chain benefits from Vietnam’s proximity to Chinese manufacturing and from the region’s role in producing materials and components for global fashion brands.
Local demand is also shaped by income levels. Vietnam’s average monthly income remains far below the prices charged by luxury brands, making counterfeit goods attractive to shoppers who cannot afford authentic products.
Some local designers support the crackdown, saying counterfeit goods undermine Vietnam’s retail market and reduce appreciation for domestic tailoring and design. Others argue that enforcement alone will not remove demand, because buyers who purchase cheap fakes are unlikely to become customers for original luxury products.
Featured image credits: Wikimedia Commons
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