Counterfeits and Piracy Still Rampant in Vietnam Ahead of US Tariff Deadline

Vietnam's bustling market scene hasn't slowed down in the face of US pressure on intellectual property violations. In the sprawling Ninh Hiep market near Hanoi, stalls continue to sell counterfeit goods openly, even as government crackdowns come and go with little lasting effect. One vendor put it bluntly: police show up once a year with cameras, seize a few stalls, then vanish-business resumes like nothing happened.

This wholesale market is notorious enough to earn a spot on the US Trade Representative's list, which names approximately 30 global hubs implicated in counterfeiting and piracy. The USTR recently spotlighted Vietnamese-based streaming websites like MyFlixerz, which offer pirated films and TV shows with immense global traffic; despite promises to clamp down, these sites remain accessible.

The US has gotten serious about Vietnam's IP violations, designating it the world's worst offender in April and warning of a pending investigation that could result in tariffs. This move came amid a surge in Vietnamese exports to the US, leading to a sizable trade deficit with Hanoi-larger even than China and Mexico's figures for the same period.

Vietnam's foreign ministry contests this harsh assessment, claiming substantial efforts to combat piracy and urging a fair, balanced review of their achievements. Indeed, a recent government blitz from early to late May targeted counterfeit goods and digital piracy, but it's not the first time such operations have rolled through.

Rent a look at Ninh Hiep before and during the May crackdown reveals the resilience of the counterfeit trade. Vendors report police visits prompting temporary concealment of fake branded goods but add they keep stocks hidden, ready to fulfill orders. Fakes labeled with names like Ralph Lauren and Gucci, many traced back to Guangzhou, China, remain a dominant feature. Some products are even made locally.

Last year's police raids on similar markets, including a major site in Ho Chi Minh City, also failed to eradicate the illicit trade. Motorcycle couriers navigate crowded alleys, shipping counterfeit items to Hanoi's downtown and other retail points. The vendors' repeat mantra: as long as buyers exist, supply finds a way.

The ongoing struggle to tackle intellectual property infringement in Vietnam is complicated by entrenched networks and international supply chains. Washington's stance reflects broader challenges for global trade overseen by IP rules, where enforcement gaps persist despite diplomatic efforts.

Whether these latest US warnings will shift the needle in Vietnam remains uncertain. For now, the counterfeit game here appears immune to public crackdowns, keeping market stalls and digital pirate sites in business as the tariff deadline approaches.