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In the context of deepening international economic integration and the rapid development of e-commerce, the trafficking of counterfeit goods and intellectual property (IP)-infringing products in Vietnam has grown increasingly complex. Government authorities are tightening inspections and enforcement efforts to protect the rights of consumers and legitimate businesses, while fostering a healthy business environment.
In recent years, the production and trade of counterfeit goods and IP-infringing products in Vietnam have become more sophisticated, seriously affecting consumer rights, the investment climate, and the country’s reputation in international commerce.
The robust growth of e-commerce and social media, coupled with the difficulty in controlling supply chains, has enabled increasingly organized, cross-border, and technologically advanced violations. In response, Vietnam is intensifying inspections, oversight, and strict enforcement to combat counterfeiting, safeguard IP rights, and promote a transparent and fair business environment.
A notable case highlighting the prevalence and audacity of counterfeit trade involved Ms. Nguyễn Thị Hà in Hanoi, who was found selling over 5,000 counterfeit handbags and wallets bearing fake trademarks such as Louis Vuitton, Gucci, Chanel, Dior, YSL, Charles & Keith, etc., without any invoices or documents proving lawful origin. Despite being fully aware that the sale of counterfeit goods is illegal, she openly conducted transactions on social media, illicitly profiting tens of millions of VND. This is just one of many cases uncovered recently, illustrating the scale and complexity of the counterfeit market in Vietnam.
From a legal perspective, acts of counterfeiting, trading in counterfeit goods, and infringing IP rights are regulated under various legal instruments, including administrative, civil, and criminal sanctions.
On the civil front, Clause 2, Article 199 of the 2022 Law on Intellectual Property stipulates that, where necessary, competent state authorities may apply provisional emergency measures, export and import control measures related to IP, as well as measures to prevent and ensure administrative sanctions in accordance with the IP Law and other relevant legal provisions.
Additionally, Article 202 of the 2022 Law on Intellectual Property entitles IP rights holders to demand that infringing individuals or organizations cease their violations, issue public apologies and corrections, perform civil obligations, and compensate for damages. Acts involving the use of identical or confusingly similar signs to protected trademarks that mislead consumers may be deemed trademark infringement and are subject to the relevant legal provisions.
Moreover, the production and trade of counterfeit goods may be subject to administrative penalties under Clause 1, Article 2 of Government Decree No. 99/2013/ND-CP. Fines can reach up to VND 250 million for individuals and VND 500 million for organizations. In addition, violators may face supplementary penalties such as confiscation of goods and means used in the violation, suspension of business operations, and destruction of the infringing goods.
In more serious cases, those engaged in the manufacture or trade of counterfeit goods may face criminal prosecution under Article 226 of the 2015 Penal Code (amended in 2017).
This provision imposes criminal liability on individuals who willfully infringe upon industrial property rights related to trademarks or geographical indications protected in Vietnam, where the infringing goods are counterfeit and the offense involves commercial scale activities, illicit profits of between VND 100 million and under VND 300 million, or causes damages of between VND 200 million and under VND 500 million to trademark or geographical indication holders. Penalties may include fines ranging from VND 50 million to VND 500 million or non-custodial reform for up to three years.
These stringent sanctions underscore the State’s commitment to protecting intellectual property rights – a cornerstone of the knowledge-based economy and international integration. The identification and penalization of violations not only curb illegal activities but also reinforce investor and business confidence in Vietnam’s legal and enforcement systems.
Moving forward, in addition to intensifying market inspections and stringent enforcement — particularly against counterfeit food products that directly impact consumer health — Vietnam must strengthen public awareness campaigns on IP law and enhance knowledge among both citizens and enterprises, especially online business operators.
A combination of legal enforcement and legal education will create a sustainable foundation for preventing the manufacture and trade of counterfeit goods, thereby enhancing the country’s reputation in the global supply chain and attracting high-quality investment.
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