A display of authentic and counterfeit goods set up by the General Department of Market Management on Trang Tien Street, Hanoi. — VNA/VNS
HANOI: With just a smartphone or tablet, consumers can now shop for their favourite products virtually anywhere.
The speed and convenience of e-commerce have transformed purchasing habits, creating a thriving online marketplace.
However, this convenience comes with a growing problem - the rise of counterfeit goods, substandard products and commodities of unknown origin on digital platforms.
Authorities warn that tackling these issues requires not only regulatory intervention but also greater vigilance from businesses and consumers alike.
On Feb 13, market management team No 2, under the Dong Thap Province Market Management Department, inspected a local business and seized a shipment of denim clothing being sold via TikTok livestreams. The authorities found that garments lacked documentation proving their origin.
These cases are by no means uncommon.
In late 2024, authorities uncovered a suspected smuggling operation run from an apartment complex in Hanoi, where a prominent TikToker, with over four million followers, had been livestreaming sales.
More than 10,000 bottles of perfume, branded as True Love, First Love, Mon Paris, Maiden and Karri, were seized, all without clear origin.
This is just one of several typical cases uncovered by the authorities recently.
In 2024 alone, market management teams conducted over 3,400 inspections targeting e-commerce violations.
Of these, 1,256 involved counterfeit goods or intellectual property infringements. Administrative fines totalled around US$1.9 million, while nearly $2 million worth of goods were confiscated.
The explosive growth of online business, especially during the Covid-19 pandemic, has made Vietnam one of the most dynamic e-commerce markets in Asean, according to Nguyen Thanh Binh, Deputy Director of the Domestic Market Management and Development Department under the Ministry of Industry and Trade.
He noted that the rapid expansion has opened loopholes that are being exploited by bad actors.
Authorities report that fake goods and prohibited products are increasingly being traded online, with some criminals using e-commerce platforms to defraud customers and distribute banned materials. The violations are growing more complex, both in scale and in their operational reach.
Chu Xuan Kien, Director of the Hanoi Market Management Department, said that the challenge lies in how online transactions occur almost instantly and often leave minimal trace, while enforcement efforts depend on clear signs and solid evidence of violations.
Offenders tend to operate on a small scale, which makes them harder to detect and prosecute. Compounding the issue is the anonymity of the internet, identities are easily faked, evidence can be erased and illegal activities often span regions.
Offenders might sit in one location while carrying out operations in several others, Kien said.
Technological response
To address these challenges, authorities are turning to technology.
In 2024, the General Department of Market Management, now the Domestic Market Management and Development Department, signed a cooperation agreement with the Ministry of Public Security’s Department of Security Industry.
Together, they aim to develop a data-driven software system that can trace goods sold via e-commerce platforms. A pilot programme focusing on school textbooks is expected to roll out in 2025.
“This initiative is about safeguarding both consumers and businesses,” said Nguyen Duc Le from the Domestic Market Management and Development Department.
“Protecting legitimate business rights also helps foster social and economic development.”
The Government’s strategy to combat counterfeiting in e-commerce was formalised in 2023 under Decision No 319/QD-TTg, signed by the then Deputy Prime Minister Tran Luu Quang.
The project aims to strengthen legal frameworks, introduce tougher penalties and apply new technologies to detect and handle violations more effectively.
Le said that cooperation is critical. Close coordination is needed between enforcement bodies, including cybercrime units, market management agencies, customs authorities, the Department of E-commerce and Digital Economy, the Competition and Consumer Authority, and tax agencies. The goal is to build a networked response to online smuggling, counterfeiting, and fraud.
Local police forces must also play a role, helping to prevent suspects from destroying evidence or fleeing when discovered.
“At the same time, businesses should be encouraged to commit to not dealing in fake or smuggled goods,” he said.
The Director of Investigations and Enforcement at REACT Vietnam, part of an international anti-counterfeiting network, Pham Thanh Hien, said enforcement efforts would benefit from stronger ties between brand owners, regulators and e-commerce platforms.
Hien suggested that online sales activities should be considered valid evidence and emphasised the need for an early-warning system based on consumer feedback to identify substandard products.
He also called for targetted public awareness campaigns to help consumers and small traders recognise and avoid counterfeit goods. — Vietnam News/ANN
