Stronger legal framework urged as trade fraud surges online

Stronger legal framework urged as trade fraud surges online

Vietnam has made notable progress in combating smuggling, trade fraud and counterfeit goods in 2025, but violations are increasingly migrating to the online environment, raising new regulatory and enforcement challenges.

Speaking at a forum on online trade fraud on December 30, Hoang Quang Phong, vice chairman of the Vietnam Chamber of Commerce and Industry (VCCI), said that in 2025, authorities recorded tangible results in the fight against smuggling, trade fraud, and counterfeit goods, with tens of thousands of cases detected and handled nationally.

According to the National Steering Committee, in the third quarter of 2025 alone, authorities revealed and dealt with more than 31,000 cases, contributing over VND3.6 trillion ($144 million) to the state budget and initiating criminal proceedings in 462 cases involving 915 individuals.

“However, violations are increasingly shifting to the online environment, creating an urgent need to improve the legal framework, strengthen inter-agency coordination, and protect legitimate businesses,” he said. Offences are concentrated in cosmetics, health supplements, pharmaceuticals, consumer goods, fireworks, and goods without invoices or supporting documents, as well as trademark and origin violations.

At the forum, participants warned of a surge in counterfeiting and substandard goods on e-commerce platforms. The Vietnam Anti-Counterfeiting Association noted that counterfeiting of cosmetics, health supplements, and consumer goods has become increasingly sophisticated, particularly on e-commerce platforms and social media.

The Vietnam Association of Functional Foods also highlighted several common practices, including products of unclear origin and lacking valid invoices or documentation; sales without transparent price listings or with abnormal price discrepancies; misleading advertising about product functions, posing risks to consumers; and the use of virtual warehouses, accounts, and addresses to evade inspections.

Phong stressed that trade fraud and counterfeit goods not only cause significant losses to the state budget and distort competition, but also erode consumer trust and directly affect the sustainable development of the business community.

“This is a challenge that cannot be underestimated as the digital economy accelerates, requiring more substantive and effective solutions,” he said.

On solutions, Phong proposed, “The legal framework must be completed with clear responsibilities, clear sanctions, and clear coordination mechanisms. All fraudulent acts in the online space must be detected early, handled quickly, and disclosed transparently to protect legitimate businesses.”

Delegates at the forum also called for stronger inter-agency coordination as a core pillar in preventing online violations. This includes data connectivity among specialised agencies such as the police, market surveillance authorities, customs, businesses, and e-commerce platforms; enhanced monitoring of online transactions and data-based tracing; and the sharing of operational information and early warnings among enforcement forces.

He said that the National Assembly's adoption of the E-commerce Law in 2025 is viewed as a strategic step to tighten the management of online business activities, strengthen control over origin, documentation, and false advertising, and enhance consumer protection and the investment environment.

"Preventing counterfeit goods and trade fraud is not only the task of regulatory authorities, but a shared responsibility of businesses, associations, and society as a whole. Businesses must proactively protect their brands, while the state needs to create a fair and transparent competitive environment," Phong emphasised.

VIR