Challenges in preventing counterfeit goods and intellectual property violations in e-commerce

Vu Hoai Linh, Deputy Head of the Intellectual Property Rights Protection Enforcement Unit (Unit 4) - Anti-smuggling and Investigation Department - General Department of Vietnam Customs. Photo: T.D

Concerns over counterfeit imports

Vu Hoai Linh, Deputy Head of the Intellectual Property Rights Protection Enforcement Unit (Unit 4) under the Anti-Smuggling and Investigation Department of the General Department of Vietnam Customs, highlighted this issue at the seminar titled “Enhancing Effectiveness in Cooperation Against Smuggling, Counterfeiting, and Intellectual Property Violations,” held by Customs Magazine on December 6, 2024, in Ho Chi Minh City.

According to Mr. Linh, the smuggling and sale of counterfeit goods, IP-infringing items, and products with falsified origins have seen unpredictable changes in 2024. High-risk products include consumer goods, electronics, electronic components, home appliances, functional foods, cigarettes (including new-generation tobacco products), counterfeit alcohol, and steel.

These items primarily originate from China, Hong Kong, Cambodia, Thailand, and Taiwan. Notably, the public sale of counterfeit goods and IP-infringing items on e-commerce websites has been rapidly increasing.

The allure of high profits and consumer preferences for branded goods at lower prices are key drivers behind this trend. Price disparities between domestically produced goods and imported counterfeit products also encourage counterfeiters to target this market. The growth of international express delivery services further facilitates the transportation of counterfeit goods.

Mr. Linh emphasized that e-commerce is a vast and complex environment, making it exceptionally challenging to monitor. With millions of online sellers, controlling the origin of goods is an arduous task.

Customs authorities face significant difficulties in screening cross-border shipments for counterfeit goods, especially when these items are transported in small packages or envelopes.

Additionally, China has aggressively established large-scale warehouses along its borders, supported by favorable government policies for cross-border e-commerce.

For example, the China-ASEAN Cross-Border E-commerce Industrial Zone in Hekou County, Yunnan Province, covers an area of 660,000 square meters with an investment of 3.68 billion yuan (approximately US$525 million). Once operational, the facility can process up to 50,000 parcels per day (about 800 tons), with annual transaction volumes expected to exceed 2 billion yuan (US$280 million). Goods from China can reach Vietnam in just two days.

Enterprises introduce to Customs officials to distinguish fake and genuine goods within the framework of the seminar. Photo: TH

Customs authority proactively launch preventive measures

The lack of robust legal frameworks and enforcement mechanisms in many countries, including Vietnam, has allowed counterfeiters to exploit these gaps. Penalties for counterfeiting remain insufficient to deter offenders, and institutional limitations hinder effective action. Moreover, the responsibilities of platform operators in combating counterfeit goods have not been clearly defined.

Infrastructure for information sharing and collaboration between public and private stakeholders remains inadequate. Online platform operators struggle to address emerging threats effectively, and there is insufficient oversight of intermediary retailers. Privacy concerns also complicate efforts to monitor online transactions.

Delegates visit the booth displaying the distinction between genuine and fake products of businesses within the framework of the discussion. Photo: T.D

To address these challenges and combat smuggling and IP violations effectively, the General Department of Customs has implemented a range of measures as follow

In term of e-commerce, collecting information from media sources to identify key businesses and high-risk products showing signs of IP violations.

Furthermore, strengthen partnerships with foreign customs agencies through information sharing, workshops, and capacity-building initiatives in counterfeit goods control and IP rights protection.

Moreover, coordinate with the Intellectual Property Department, the Institute of Intellectual Property Science, rights holders, and their representatives for technical expertise and evaluation of suspected goods.

Local customs units are intensifying efforts to detect, seize, and handle counterfeit and IP-infringing goods in e-commerce while maintaining smooth customs clearance to prevent congestion at border gates.