politics
Vietnam Launches Nationwide Raids on Counterfeit Goods Markets
Police seized more than 23,000 pairs of fake slippers in Ho Chi Minh City earlier this year. The government launched a nationwide crackdown in May amid US trade pressure.
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Vietnamese police raided two warehouses in outer Ho Chi Minh City earlier this year and seized more than 23,000 pairs of counterfeit slippers bearing Nike, Adidas, Crocs and Gucci logos. The goods were valued at VND 2 billion. On 7 May the government launched a nationwide crackdown on intellectual property violations that included counterfeit goods, online piracy and trademark infringements.
In April the Office of the United States Trade Representative designated Vietnam a priority foreign country for the first time in 13 years, citing persistent failures on IP protection. The same report branded Vietnam the world's worst offender on IP rights. Vietnamese authorities pledged to increase IP violation busts by at least 20 percent in May compared with the same period last year.
In mid-May authorities conducted surprise inspections at Saigon Square and Ben Thanh Market, confiscated counterfeit goods and issued fines totaling more than $19,000. In the last three weeks of May they handled more than 1,400 IP infringement cases.
In late May the United States opened an investigation into whether Vietnam's failure to address IP violations was unreasonable and problematic for US commerce.
On 10 June police in Thanh Hoa province dismantled a counterfeit jewelry manufacturing and sales ring that produced more than 10,000 items imitating Bvlgari, Cartier, Louis Vuitton and Tiffany & Co. The operation generated an estimated $1.14 million in illicit profits. Market vendors in Ho Chi Minh City and Hanoi have had stalls shut and warehouses, clothing outlets and sneaker stores raided.
The supply chain for most Vietnamese counterfeits traces to manufacturing in China. Some vendors now display fewer logo-branded items while keeping stock in the back or alter designs and brand names to evade IP laws. Huong Thi Nguyen, who designs and sells her own clothing in Ho Chi Minh City and Da Lat, said the counterfeit trade violates designers' rights and makes the retail market chaotic.
