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Fake cosmetics are sold in markets in Ho Chi Minh City. Photo: N.H

Increasing counterfeit goods

According to statistics from the General Agency of Market Surveillance under the Ministry of Industry and Trade, in 2017 and the first nine months of 2018, the Market Surveillance forces in the country detected 34,733 cases of violations and sanctioned administrative violations of over VND 121.3 billion with confiscated goods valued at VND 907 billion. Of which, 458 violation cases on quality and use; 6,154 violation cases on geographical indications and trade mark; 690 violation cases on labels and packages; 1,064 violation cases on intellectual property rights; and 26,367 violation cases on goods labels.

According to the General Agency of Market Surveillance, currently, the counterfeit goods and goods infringing on intellectual property rights are increasing in scale and quantity and taking place in many items and sectors from the materials used for productions and processing, consumer goods to products with high value.

Recently, many large cases valued at tens of VND billion which were investigated, detected and handled such as the fertilizer production by Thuan Phong Company, the production and trading cosmetics and supplemental foods by TS Company; the production of anticancer drugs from bamboo charcoal powder by Vinaca Company or silk products of Khai Silk Group have caused concerns for consumers.

Mr. Dam Thanh The, Director of Standing Office of the National Steering Committee 389 said that although competent forces inspect and control in sectors and areas, the number of counterfeit goods and goods infringing on intellectual property rights was continuously increasing. Only in the first 6 months of 2018, the number of violation cases in the country raised twice compared to the same period in 2017.

The statistics from the Vietnam eCommerce and Digital Economy Agency under the Ministry of Industry and Trade also showed that the number of counterfeit goods in the eCommerce sector is increasing. Specifically, the fine for the violation in the eCommerce sector was VND 5.5 billion in 2015 and VND 6 billion in 2017.

Many shortcomings

Also the General Agency of Market Surveillance said that one of the current major difficulties in controlling counterfeit goods was that the methods and tricks of producers and traders were more sophisticated and professional. Perpetrators were closely organized and created focal points specializing in the supply of raw materials, components, packages and labels. Counterfeit goods were manufactured in the form of semi-products in one place and then were ordered to another place to assemble and package finished products. After being ordered, these counterfeit goods would be labeled with a fake trade mark, origin and delivered. The counterfeit goods would be manufactured and consumed immediately and would not be stored to wait for consumption.

In addition, perpetrators were increasingly diverse and blended in residential areas, villages in rural areas, and even in industrial parks, Foreign Invested Enterprises, co-operatives and social networks. Thus, it was very difficulties to control.

Analyzing the causes of increasing counterfeit goods, the delegates at the seminar said that besides objective and subjective causes from the market, enterprises and consumers, there were reasons from shortcomings in policies and handling for violations.

According to Mr. Le The Bao, President of the Vietnam Anti-counterfeiting and Trademark Protection Association, counterfeit goods still exist and particularly serious in rural areas, border gates, especially items affecting health of people and business production. It is not only due to the sophisticated tricks of perpetrators and the lack of responsibility of enterprises and consumers, but also the shortcomings in managing and policies of the law.

Mr. Nguyen Van Bach, Director of Market Surveillance Department proposed that competent agencies need to complete regulations soon on the enforcement of intellectual property rights and specifically instruct for enforcement agencies to synchronously perform. Typically, the regulations on the conclusion of the violation or the act of transporting or storing goods or services infringing on the rights or counterfeiting of trade marks or geographical indications.

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A representative of the Petro Vietnam Northern Gas Joint Stock Company also said that the illegal gas pumps were increasing and publicly taking place due to the lack of sanctions by the relevant authorities or insufficient handling. For example, the case of illegally pumping gas and cutting gas shells in Hoa Binh at the end of 2017, but the case wasn’t handled completely until June 2018. This was a big offense but it was only handled for administrative violations and then this enterprise continued operating normally.

The representative of the Petro Vietnam Northern Gas Joint Stock Company said that there was the denying of responsibility for handling violations between the police and the surveillance market forces, thus they need to enhance their responsibilities in handling cases related to counterfeit goods.