AI Plays Key Role in Fight Against Counterfeiting in Southeast Asia

Counterfeiting has become a serious challenge across Southeast Asia, with counterfeit fashion, electronic devices and pharmaceuticals sold in both traditional and online shopping spaces.

Counterfeiting is severely impacting businesses, especially startups and small brands that lack the resources to protect their products. Counterfeit goods erode customer trust, hurt sales and hinder truly innovative products in the market, according to Technode Global.

For entrepreneurs trying to build their brands, rising counterfeiting is probably a major hurdle, but technology is starting to be a game-changer. Artificial intelligence (AI) is helping create a new wave in the fight against counterfeiting. Tools like image recognition and blockchain are helping companies detect and stop counterfeits before they reach customers.

The scope of counterfeiting in Southeast Asia

Southeast Asia has become a counterfeiting hotspot in recent years, with Indonesia, Vietnam, Thailand and the Philippines among the most renowned destinations. Several countries report a surge in counterfeit goods sold in flea markets, retail stores, and online platforms.

The global counterfeiting industry is expected to reach US$1.79 trillion by 2030. From knockoff fashion and electronics to medicines and packaged foods, the scope of counterfeiting continues to expand. Most knockoff products often look convincing but do not meet the same quality and safety standards as genuine brands.

Economic consequences of counterfeiting are dire. Businesses lose revenue, startups struggle to compete and brand reputations are severely damaged. Counterfeit goods lack the quality and safety standards of genuine products, increasing the risk of defects or harm.

In sectors like healthcare and food, this can lead to safety risks, legal and regulatory troubles. For companies trying to expand in the Southeast Asian market, counterfeiting is a real threat.

Government involvement

Vietnam is stepping up its fight against counterfeiting by enforcing strict customs policies and aggressively monitoring online shopping platforms. Government agencies and industry stakeholders are pushing for a stronger legal framework to protect digital consumers, especially amid the boom in e-commerce.

There are growing calls for platform accountability and better coordination among regulators, tech companies and brand owners to root up the problem. These efforts signal a shift to a more active, technology-driven approach to protecting consumers and businesses from counterfeit goods.

Elsewhere in the region, Indonesia launched a national campaign targeting counterfeit cosmetics and pharmaceuticals which pose serious health risks. Thailand also noted progress in intellectual property rights enforcement and worked closely with international partners to track and take down counterfeit goods.

On a broader scale, ASEAN promotes cross-border cooperation, encourages member states to share data, agree on enforcement strategies and develop regional solutions. The joint effort reflects the recognition that the counterfeiting crisis cannot be solved alone and requires cooperation, innovation and strong policy support.

AI is changing the fight against counterfeits

AI is becoming key in the global fight against counterfeiting. Technologies like machine learning, computer vision and blockchain are helping businesses detect counterfeits more efficiently and at scale.

AI can analyze product details - like packaging and serial numbers - with high accuracy, helping spot inconsistencies that are difficult for the naked eye to figure out. AI is especially useful when tracking large volumes of listings across multiple e-commerce platforms.

Blockchain increases transparency in the supply chain. Using technologies like RFID tags, NFC chips or QR codes, companies can track the journey of a product - from the manufacturer to the consumer. Traceability makes it harder for counterfeit goods to enter the market.

Tech benefits are clear: Technology helps discover counterfeits faster and more accurately, the system is scalable, and alerts are real-time. For companies tapping into complex markets like Southeast Asia, AI offers a smart, forward-looking solution that completely solves a costly and persistent problem.

Opportunities for innovators

Startups across Southeast Asia can seize the opportunity by developing AI-based tools that help brands verify product authenticity and combat counterfeiting. The solution integrates multiple technologies, from computer vision to advanced data analytics, to detect counterfeits quickly and accurately.

As the demand for security authentication grows, investors are showing strong interest in this emerging technology space. Startups that can provide fast, user-friendly and cost-effective tools are well-positioned to lead the next wave of innovation in brand protection.

Governments are also actively getting involved, forming partnerships with tech companies to strengthen enforcement and improve supply chain transparency. Collaboration is driving significant progress, from smarter customs systems to digital product verification platforms.

The drive for innovation is backed by strong market potential. Experts forecast the Asia-Pacific anti-counterfeiting packaging market to value US$42 billion by 2024, saying that it could grow to around US$119.1 billion by 2032. For tech companies, the message is clear - the market is ready and the opportunity is real.

AI and innovation are essential in the fight against counterfeiting. Technology provides businesses with the tools they need to protect their products and restore consumer trust. As the market evolves, companies will be able to build smarter, scalable solutions that will shape the future of global commerce.

By Duy Anh, Vietnam Business Forum