Vietnam Launches Crackdown on Counterfeit Industry Under US Pressure

Vietnam is escalating its war against the counterfeit goods industry that has flourished for decades, following intense pressure from the United States. The US had assessed that Vietnam failed to protect intellectual property rights, making it one of the world’s largest hubs for the circulation of imitation products. “Law enforcement is becoming stricter,” said a clothing trader at Saigon Square, using the pseudonym Thanh Truc. He admitted to previously selling replica Loewe shirts, which retail internationally for around US$500, for just US$17. He noted that the current crackdown is far more serious than previous operations. Earlier this year, police raided two warehouses on the outskirts of Ho Chi Minh City and discovered over 23,000 pairs of counterfeit sandals bearing logos of Nike, Adidas, Crocs, and Gucci. The goods, valued at 2 billion Vietnamese dong, were seized. Nearby, fake luxury sandals with an original price of US$900 were still being sold openly for around US$30. Counterfeit Chanel bags, Prada shirts, and Rolex watches were also displayed openly in the same market. On 7 May, the government launched a national operation to combat intellectual property violations, including counterfeit goods, digital piracy, and trademark abuse. The crackdown intensified after the Office of the United States Trade Representative designated Vietnam as a ‘priority foreign country’ in April, a status given to nations deemed to have failed to address intellectual property rights violations. It was the first time in 13 years a country received this label. Facing tariff threats from the Trump administration, Hanoi pledged to increase enforcement actions against intellectual property violations by at least 20% compared to the previous year. As a result, authorities handled more than 1,400 cases in just the last three weeks of May. Despite the crackdown, traders say they are accustomed to raids. Thanh Truc said a whistle is usually blown as a warning before inspectors arrive. “After the raid is over, business goes back to normal,” he said, adding that some shops now display fewer branded items but keep stock in backroom warehouses. The crackdown has also targeted larger syndicates. On 10 June, police in Thanh Hoa province dismantled a network producing over 10,000 pieces of counterfeit jewellery mimicking brands like Bvlgari, Cartier, Louis Vuitton, and Tiffany & Co. The syndicate reportedly earned illegal profits of around US$1.14 million. Local fashion industry players have welcomed the government’s actions. Designer Thi Nguyen said the proliferation of counterfeit goods had damaged the domestic fashion business ecosystem. “I feel more confident operating in a cleaner, more transparent, and fairer business environment. It’s not about who wins or loses, but about restoring fairness between genuine and fake products,” she said. However, not everyone agrees. Huy, an office worker in Da Nang, said he would continue to buy counterfeit goods because they are much cheaper. “Arresting sellers doesn’t solve the problem. As long as fake goods are easily found, I will keep buying them,” he said, arguing that imitation products are more suited to the financial capabilities of many Vietnamese people. A similar view was expressed by Thi Thanh Huong Tran, an associate professor at SKEMA Business School who researches ethical consumer behaviour. She said the high demand for counterfeit goods is inseparable from economic conditions. “People know the goods are fake, but when they cannot afford the genuine product, it becomes the most reasonable choice. As long as demand exists, producers and sellers will continue to find ways to survive,” she said.