Vietnam’s Prime Minister Pham Minh Chinh has urged the anti-counterfeit task force to adopt new measures to fight counterfeit goods, trade fraud, and smuggling, according to a government statement.

This comes as Vietnam negotiates with the US over concerns about intellectual property violations and the transshipment of Chinese goods through Vietnam.

Authorities say counterfeiting, digital piracy, and trade fraud are widespread and increasing, especially online. Government data shows 1,100 cases of counterfeit and IP violations, 25,100 cases of trade and tax fraud, and 8,200 smuggling incidents reported this year.

Officials highlight the growing issue of low-quality and fake goods in ecommerce, which they warn could harm public health and disrupt social order.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Vietnam’s counterfeit crackdown reflects a pattern of external trade pressure driving domestic enforcement

Vietnam’s current intensification of anti-counterfeit efforts follows a historical pattern where external trade pressures have catalyzed domestic enforcement actions.

The timing of this crackdown coincides with ongoing US tariff negotiations, where Vietnam faces potential 46% tariffs if it fails to address American concerns about intellectual property breaches and transhipment 1.

This pattern mirrors previous enforcement waves, including the 2019 campaign when authorities identified 90,000 cases of trade fraud and issued nearly VND 670 billion (approximately USD 28.96 million) in fines amid similar international pressure 2.

The government’s targeted approach, specifically increasing inspections of luxury goods, electronics, and consumer products at borders, demonstrates a strategic focus on visible enforcement actions that could satisfy US trade negotiators rather than addressing deeper structural issues 3.

Vietnam’s global position as the 8th highest country for trade in counterfeit goods (with a criminality score of 7.50) highlights how significant this issue remains despite periodic enforcement campaigns 4.

2️⃣ E-commerce growth has transformed Vietnam’s counterfeit landscape, creating new regulatory challenges

The rapid digitalization of Vietnam’s retail sector has fundamentally altered how counterfeit goods reach consumers, with e-commerce revenue reaching USD 20.5 billion in 2023 amid limited regulatory oversight 5.

January 2025 alone saw authorities uncover 72 new fraudulent websites, contributing to nearly 125,600 fake sites now tracked in the national anti-fraud database, numbers that demonstrate the massive scale of online fraud 6.

Traditional market inspections have become increasingly ineffective as counterfeiters shift to sophisticated online operations, with many fraudulent sites impersonating legitimate e-commerce platforms to deceive consumers 6.