Tough Fight against Counterfeit Goods

Counterfeit goods and knock-offs seriously plague producers and send true companies into losses and even bankruptcy. More seriously, they harm the investment environment and the economy. Vietnam Business Forum interviewed Mr Le The Bao, President of the Vietnam Association for Anti-counterfeiting and Trademark Protection (VATAP), on this matter. Do Ngoc reports.

 

Currently, Vietnamese goods are actually not inferior to foreign goods. But, foreign products are smuggled across the border without being subject to taxes, experiencing quality control and quarantine. Then, Vietnamese enterprises have to give in to foreign goods.

 

According to our recent surveys, many consumers are willing to support Vietnamese goods, but they also require manufacturers to have good products and quote reasonable prices.

 

In terms of prices, Vietnamese goods can hardly compete with ASEAN-sourced items. In terms of quality, they cannot compete with European and American goods. But, in terms of local advantages, and deep knowledge of local tastes, domestic companies outperform foreigners. They need to take advantage of their strengths to inform consumers in the best way. Then, Vietnamese goods will find a position on the marketplace.

 

One of the primary reasons for rampant counterfeit and imitated goods is the low income of consumers. The difference between prices of genuine goods and counterfeit ones is large. Sellers are willing to mix the real and the fake together for the purpose of earning mercenary profits. Producers of real products have a certain rate of commissions for sellers. However, they will reportedly get double or more profits from selling faked goods.

 

Sometimes, we receive information about counterfeit and imitated goods but we do not have willing cooperation from victim producers we contact in an effort to deal with counterfeiting and imitation. This is because they fear the act will affect their credibility. Up to 99 percent of claims on goods control come from foreign enterprises.

 

Local companies simply think that they are making what they have and they are naturally legitimate owners. They hardly approach regulations on intellectual property rights, or international business rights protection organisations. Legal regulations are still overlapping and impractical.

 

I hope recent incidents involving Vinataba cigarettes, Trung Nguyen coffee, Phu Quoc fish sauce and most recently Buon Ma Thuot coffee will awake Vietnamese companies to think about about brand name protection, not only in home market but also in international markets. They should start with existing and potential markets.

 

Companies need to cut costs to reduce prices, thus putting an end to falsified goods.

 

An indispensable element in the prevention of counterfeit and imitated goods is the collaboration of companies, trademark owners as well as buyers.

 

Up to 60 percent of Vietnamese consumers have purchased counterfeit goods. In Ho Chi Minh City, as much as 35 percent of products on the market are faked goods, according to a survey by VATAP. High valued, profitable goods are most counterfeited and imitated. More than 50 percent of cosmetics for women are counterfeited. Fertilisers, pesticides, herbicides and medications are also often falsified.

The first thing companies need to do is to establish intellectual property rights to the trademarks, logos, trade names, business slogans, and trade secrets. To prevent counterfeiting, the action of only companies is not enough, but it necessitates the efforts of the entire business community. In addition, legal regulations must be practical and specific, and enforcement forces must be powerful enough.

 

To date, we have provided 750,000 hologram stamps for consumer goods. If products are stamped, they will easily penetrate the market because consumers will easily identify them.

 

The demand for consumer goods surges at regular times in the year and these are the occasions for faked goods to enter the market in great volume. Thus, the Central Steering Committee 127/TU has instructed competent forces to perform close checks and control key areas and traffic routes.

 

In urban areas, we will check wholesale markets, trade centres, supermarkets and other marketplaces. We have completed coordination plans with other forces to check, contain and hold back counterfeiting, not only during the New Year festival but also in other times of the year.

 

The Vietnam Association for Anti-counterfeiting and Trademark Protection (VATAP) will strive together with competent authorities to curb counterfeiting to protect the interests of consumers and ensure a good business environment for enterprises.