Strengthening Fight Against Counterfeit Goods, Trade Fraud

Recently, Prime Minister Pham Minh Chinh chaired a meeting with ministries and other stakeholders to review efforts against smuggling, trade fraud, and counterfeit goods in early 2025, and set directions and tasks for the months ahead.

Mr. Tran Huu Linh, Director of the Agency for Domestic Market Surveillance and Development under the Ministry of Industry and Trade

Authorities nationwide have handled over 34,000 cases of smuggling, trade fraud, and counterfeit goods, collecting more than VND4,897 billion for the state budget and prosecuting nearly 1,400 cases. However, the situation remains complex, with serious cases uncovered such as fake milk in Hanoi, counterfeit medicine in Thanh Hoa and fake food in Phu Tho. Counterfeit functional foods in Hanoi and fake goods in Ho Chi Minh City continue to circulate, especially via social media.

Regarding the recent cases of fake milk and counterfeit medicine uncovered by authorities, Mr. Tran Huu Linh, Director of the Agency for Domestic Market Surveillance and Development under the Ministry of Industry and Trade, shared with the press about the responsibilities and authority of the market management force in carrying out its duties.

The Prime Minister recently urged stronger market management against fake food, including fake milk. What actions have been taken in response?

The Agency for Domestic Market Surveillance and Development promptly advised the Minister of Industry and Trade to issue Telegram 2755/CD-BCT on April 18, 2025, to strengthen market inspection and control. On April 22, 2025, we also directed provincial and municipal market management departments to develop plans for comprehensive inspections of business operations, warehouses, factories, and production sites for drugs, cosmetics, health supplements, medicinal herbs and traditional medicine ingredients - with a particular focus on drugs, processed foods, and health supplements. The directive emphasized promptly detecting and strictly handling violations involving counterfeit goods, product origin, quality and intellectual property rights. It also called for stronger management and oversight of e-commerce business models, and coordination with local authorities to tackle the online trade of counterfeit, substandard and IP-infringing goods in these sectors.

Recently, the Ministry of Industry and Trade has issued many directives urging provincial/municipal People's Committees to prevent and handle the production and trade of counterfeit, banned and unknown-origin goods; intellectual property violations; breaches of laws on quality, measurement, food safety and consumer rights; and other forms of commercial fraud.

For milk products, market management forces nationwide inspected and handled 783 cases, imposing fines totaling VND2.2 billion and seizing 58,187 boxes, 451 cartons, and 20,394 bottles/cans of violating goods.

For drugs, authorities addressed 985 violations involving pharmaceuticals and functional foods, issuing nearly VND32 billion in administrative fines. The value of infringing goods exceeded VND 881 million, while the value of destroyed goods reached over VND15 billion.

What limitations have weakened quality control and management of this product group?

Firstly, some enterprises fully comply with legal procedures and business documents to conceal product violations that can only be detected through testing. However, the products show no visible signs of violations to justify sampling for tests.

Secondly, investigations reveal that violators often mislabel products as “milk” or “medicine,” while their registered names and labels are “health protection food,” “supplemental food,” “formulated nutritional products,” or “food for special diets.”

Those producing counterfeit drugs have also adopted new tactics. Instead of copying existing products, they invent new drug names and company names, often claiming foreign “virtual” headquarters in Malaysia, Singapore or other countries.

After production, posing as pharmacists for pharmaceutical companies, these individuals advertise and sell goods through social networks. To build trust, they initially mix real products with counterfeits before distributing them to deceive consumers.

They also rent warehouses in secluded areas like dead-end streets or alleys and recruit workers from other localities, often relatives or acquaintances. During production, workers stay isolated in closed warehouses with no outside contact, making it difficult for authorities to supervise and inspect.

What solutions do you propose to enhance coordination among forces, ministries, and localities?

We recommend that ministries and agencies managing food quality, standards, safety, raw milk, and agricultural products regularly provide, share, and notify information on enterprises that have declared their products.

Authorities should strengthen the review and improvement of legal policies on state management, inspection and handling of violations related to health protection foods, processed foods, drugs, pharmaceuticals and milk.

Authorities need to review and complete existing coordination regulations for combating smuggling, trade fraud, and counterfeit goods, focusing on effective, practical implementation.

They should also urgently develop specialized databases and enhance connections and information sharing to support the fight against smuggling, trade fraud, counterfeit goods, violations of intellectual property rights and food safety violations.

What’s your advice for consumers, and where should they report suspicious goods?

Consumers should proactively raise awareness when buying, selling and using goods in accordance with legal regulations, avoiding unintentionally or intentionally supporting acts of smuggling, producing or trading prohibited, counterfeit, poor-quality goods or those infringing intellectual property rights.

When purchasing, consumers must choose reputable suppliers and brands trusted by many others, especially for online shopping; avoid products with abnormally low prices, unusual colors, shapes or flavors. Goods should have clear, sharp labels with full information on quality, origin and source. Buyers should check product information through the manufacturer’s hotline, the business’s official website, tax authority public portals, market surveillance or the Department of Intellectual Property. They are also encouraged to use digital tools to trace product origins.

Authorities should also strengthen communication, legal education and public awareness campaigns to improve people’s and businesses’ responsibility in combating counterfeit and poor-quality goods.

If consumers discover any unusual signs or suspect counterfeit, fake or substandard goods, they should promptly report them to the authorities for timely investigation and handling.

Thank you very much!

Source: Vietnam Business Forum