Counterfeiting threatens legitimacy of rapidly growing markets

The retail sector in Vietnam has been forecast to see robust growth over the next few years with much of the increased sales expected to come from online purchases at brick and mortar stores.
counterfeiting threatens legitimacy of rapidly growing markets

While the convenience offered by e-commerce is good news for both retailers and consumers alike, it is also proving to be highly attractive to counterfeiters, especially given the anonymity of the Internet.

The trade in counterfeit goods can be broadly pided into sales where the consumer is aware that he or she is purchasing a fake product and those where they are deceived into doing so.

In the latter case, consumers are deceptively lured into unknowingly purchasing fake products that are either sold at the same or a slightly lower price as the genuine goods resulting in huge profits to criminal enterprises.

To better understand the problem, one must take a deeper look at the business model of some of the large online e-tailers such as Amazon and Lazarda. Most e-tailers such as these use a marketplace business model with suppliers storing goods on their behalf and then delivering them once orders have been placed.

This means that these e-tailers contract directly with many local suppliers located in Vietnam to deliver goods to the consumer after an online order is placed. This business to business model in turn places competitive pressure on the e-tailer to increase its supplier base to provide goods at the most competitive prices.

Widely reported studies in other countries have shown that it is the lack of due diligence by the e-tailers to check out the qualifications of their suppliers that has allowed for the increased proliferation of counterfeit goods.

In the alternative, business to consumer model, it is the retailer located in Vietnam that maintains its website and sells its products directly to the consumer.

In this case, the retailer either takes physical possession of the goods from its suppliers or produces the product itself. The retailer is either in the analogous situation as the e-tailers and is deceived by its suppliers into selling fake goods— or alternatively is part of the criminal conspiracy to manufacture and/or distribute the counterfeit products.

Smartphones

As smartphones have become ubiquitous in Vietnam and around the globe, there has been a concurrent rise in the incidence of fake goods.

Smartphones provide criminals the ability to access the latest global trends, designs and brands and capture images of products displayed in official outlets and use them to copy and sell counterfeit products through internet applications.

Virtually anyone can create an internet application and use it to sell products directly to consumers in Vietnam, and for that matter, most other countries.

These criminal enterprises using readily accessible internet applications undermine the legitimate e-tailers that use a business to business model and retailers using a business to consumer model by selling fake brand name products at a cheaper price to unsuspecting consumers.

As such groups are currently unregulated or underregulated they, for all practical purposes, escape legal or regulatory compliance either when the criminal enterprise is created or at a later stage in its operation.

Legal framework

Specific laws governing online counterfeiting, trademark infringement, and intellectual property rights are inadequate and the Vietnam government is aware that much more need be done.

Combating the problem is an extremely complex process that has led Deputy Prime Minister Truong Hoa Binh to ask the national 389 Committee and the Subcommittees to address in the coming months.

In their review the Committee will review IP related rules, procedures, practices and guidelines for clarity, simplification, streamlining, transparency and time bound processes in administration and enforcement of IP rights.

Economic experts with near unanimity wish the Committee and Subcommittees success. The sale of counterfeit goods in Vietnam is having a negative impact on consumers, the government, the economy and brand owners, in addition to damaging the trust that consumers have in a brand product.

The availability of counterfeit goods is also having a negative impact on innovation and growth in the Vietnam economy and affects its attractiveness as an investment destination.

A strong legal framework for combating counterfeiting and piracy will only serve the best interests of the country as fake goods are threatening the legitimacy of the rapidly growing retail markets.

Source: VOV

Related News

Complying with regulations of each market for smooth fruit and vegetable exports

Complying with regulations of each market for smooth fruit and vegetable exports

VCN - According to Mr. Dang Phuc Nguyen (photo), General Secretary of the Vietnam Fruit and Vegetable Association (Vinafruit), with the development momentum and increasing consumption demand from the Chinese market, the Vietnamese fruit and vegetable industry is setting new records and is expected to reach an export turnover of US $10 billion by 2030. With great potential and advantages in developing agricultural products, Vietnam has been affirming its position as one of the world's leading agricultural exporters.
Request for price management and stabilization, avoiding unusual fluctuations during Tet 2025

Request for price management and stabilization, avoiding unusual fluctuations during Tet 2025

VCN - Minister of Finance Nguyen Van Thang has just signed and issued Directive No. 05/CT-BTC on strengthening the price management, operation and stabilization during the Lunar New Year 2025.
Six export commodity groups see billion-dollar growth

Six export commodity groups see billion-dollar growth

From the beginning of the year to December 15, there were six key export commodity groups with an increase in turnover of US$1 billion or more, according to the latest statistics of the General Department of Customs.
Automobile localization: rapid development from internal strength

Automobile localization: rapid development from internal strength

VCN - Enjoying many investment incentives for many years, FDI enterprises have failed to fulfill their commitments on the localization rate in automobile production. It was thought that Vietnam would not have an automobile manufacturing industry, depending on imports and stopping at assembly. However, in a short time, with their internal strength, determination and mettle, domestic enterprises have initially affirmed their role and position in the automobile market, with strong development in both quantity and quality.

Latest News

Customs crackdown nets 1,430 violations in first month

Customs crackdown nets 1,430 violations in first month

VCN - In January 2025, the number of violations detected, seized, and processed by customs authorities increased by 9.6%, and the value of the illicit goods involved increased by 19.4% compared to the same period in 2024.
Customs administrations coordinate to seize nearly 20,000 endangered wildlife

Customs administrations coordinate to seize nearly 20,000 endangered wildlife

VCN – About 20,000 live animals, all endangered or protected species, have been seized in a global operation against wildlife and forestry trafficking networks, jointly coordinated by the World Customs Organization (WCO) and INTERPOL.
An Giang Customs strictly controls goods moving across the border

An Giang Customs strictly controls goods moving across the border

VCN- An Giang Customs Department implements imports and exports smoothly, strictly controls smuggling and illegal transportation of goods across the border, and arrests cases.
Remodel cars to hide drugs

Remodel cars to hide drugs

VCN – Criminals have hiden drugs inside people, vehicles and goods, especially using the method of transporting consigned goods, causing difficulties for the Customs in inspection and control.

More News

Illegal transportation of gemstones by air to handled

Illegal transportation of gemstones by air to handled

VCN – If the luggage of people on exit or entry exceeds the duty-free baggage allowance gone through the customs control area without declaring to customs are considered illegal exports and imports and will be handled under the provisions of law.
Routine security screening uncovers hidden weapons at point of entry

Routine security screening uncovers hidden weapons at point of entry

VCN - During routine X-ray screenings and inspections, the La Lay Border Gate Customs Branch (Quang Tri Customs Department) collaborated with other agencies to apprehend an individual attempting to smuggle two military-grade firearms and 92 rounds of ammunition across the border.
Strictly handling illegal transportation of gemstones by air

Strictly handling illegal transportation of gemstones by air

VCN – Any commodity carried by inbound, outbound persons which exceeds the duty-free limit but still goes through the customs checkpoint without completing the customs declaration shall be considered as illegal imports or exports and shall be handled in accordance with the laws.
Nearly 18,000 cases of smuggling, trade fraud and counterfeit goods detected

Nearly 18,000 cases of smuggling, trade fraud and counterfeit goods detected

The total estimated value of confiscated goods exceeded VNĐ31.35 trillion (US$1.23 billion), marking a 12.5 per cent increase in cases and a 151.3 per cent surge in the value compared to the previous year.
Customs seizes smuggled goods and infringing products worth VND31,000 billion

Customs seizes smuggled goods and infringing products worth VND31,000 billion

VCN – Smugglers have taken advantage business models on e-commerce platforms, social networks, and postal and express delivery activities to use sophisticated tricks for smuggling and trafficking counterfeit goods.
India launches anti-dumping investigation on nylon yarn imports from Việt Nam

India launches anti-dumping investigation on nylon yarn imports from Việt Nam

The Trade Remedies Authority of Việt Nam recommends businesses involved in the production of the goods carefully review the investigation notice and comply with Indian authorities.
Hanoi Customs: 92% of post-clearance audits reveal violations

Hanoi Customs: 92% of post-clearance audits reveal violations

VCN - According to Hanoi Customs, this year’s post-clearance audit plans focus on high-risk areas with signs of violations.
Noi Bai International Border Gate Customs Sub-department: "Blocking" drugs via air

Noi Bai International Border Gate Customs Sub-department: "Blocking" drugs via air

VCN - Along with the recovery and growth of passenger and cargo flights, illegal drug transportation by air is on the rise with increasingly sophisticated and complex tricks and constantly changing methods of operation to deceive Customs and other authorities.
Drug Crime Investigation Police Force cracks down on nearly 29,000 cases

Drug Crime Investigation Police Force cracks down on nearly 29,000 cases

VCN - This is the result of the fight against drug crimes, recently reported by the Department of Drug Crime Investigation (C04, Ministry of Public Security).
Read More

Your care

Latest Most read
Customs crackdown nets 1,430 violations in first month

Customs crackdown nets 1,430 violations in first month

In January 2025, the number of violations detected, seized, and processed by customs authorities increased by 9.6%, and the value of the illicit goods involved increased by 19.4%
Customs administrations coordinate to seize nearly 20,000 endangered wildlife

Customs administrations coordinate to seize nearly 20,000 endangered wildlife

VCN - According to the WCO, the General Department of Vietnam Customs, Operation Thunder 2024 aims to combat criminal networks involved in illegal trafficking of wildlife and forestry products.
An Giang Customs strictly controls goods moving across the border

An Giang Customs strictly controls goods moving across the border

VCN - According to An Giang Customs Department, during the Lunar New Year holiday, the department has arranged leaders, civil servants and employees to work and effectively handled all arising situations and smoothly processed customs procedures, and prev
Remodel cars to hide drugs

Remodel cars to hide drugs

VCN - Through the fight against drugs, Quang Tri Customs Enforcement force recognized that the drug-related crimes have taken place sophicicatedly.
Illegal transportation of gemstones by air to handled

Illegal transportation of gemstones by air to handled

VCN - If the luggage of people on exit or entry exceeds the duty-free baggage allowance gone through the customs control area without declaring to customs are considered illegal exports and imports and will be handled under the provisions of law.
Mobile Version