Stepping Up the Fight Against Fakes: Vietnam Cracks Down on Counterfeit Luxury Goods and Digital Piracy
Vietnam intensifies efforts against counterfeit goods and digital piracy breaches
Vietnam is ramped up its efforts to combat illegal counterfeits and digital piracy, as trade talks with the USA unfold. Brands such as Prada and Gucci, Apple-owned Samsung, Google, Mattel, and Lego are set to face tougher border inspections for their luxury goods, electronics, and toys. According to a custom department document from the Ministry of Finance, obtained by Reuters, this move is a response to US accusations of Vietnam harboring a culture of illicit activities, which have resulted in threats of high tariffs.
Additional Actions Against Counterfeit Software
Beyond imported counterfeits, action is underway against local companies using unauthorized software. The Ministry of Culture sent a warning letter to a Vietnamese company on April 14, following a complaint from the Business Software Alliance (BSA), which includes members like Microsoft, Oracle, and Adobe. Similar letters have reportedly been sent to numerous companies since early April.
Vietnam's Dependence on Exports and Potential Tariffs
As an industrial hub and China alternative, Vietnam's economic success is at stake, with US President Donald Trump threatening tariffs of 46% on exports to the USA - Vietnam's primary market. However, tariffs have been placed on hold until July. In the trade talks, the US has made enforcement of intellectual property rights, including anti-counterfeiting and anti-digital piracy measures, a top priority.
Notorious Market for Counterfeits
Despite increased efforts, counterfeit luxury goods continue to surface. Only last week, stores in Ho Chi Minh City's economic hub offered fake Prada bags and wallets for sale, directly contradicting their status on the US Trade Representative's list of "notorious markets for counterfeits" published in January.
Anticipated Outcomes from Stricter Controls
- A drop in counterfeits, enhancing consumer safety and supporting legitimate businesses
- Avoidance of US tariffs, safeguarding Vietnam's trade surplus with the USA
- Encouragement of international confidence in Vietnam's respect for intellectual property rights, potentially boosting foreign investment
- Strengthened trade relations with the US and other countries through improved compliance with intellectual property obligations
The Commission has also been consulted on the draft regulation regarding Vietnam's crackdown on counterfeit goods and digital piracy, given its importance in finance and the economy. In line with the stricter border inspections, the fashion-and-beauty sector may witness a decrease in the availability of counterfeit luxury items, impacting consumer lifestyle choices.
