The threat of counterfeit goods and supply chain management loopholes
At the end of June 2025, Ho Chi Minh City authorities discovered and dismantled a large-scale production of fake milk powder under the brand name "Hiup". The product was packaged sophisticatedly, distributed through official retail channels and promoted by celebrities and nutritionists, making it easy for consumers to mistake it for the real thing.
Ms. Hai Yen, residing in Phuoc Long Ward (Ho Chi Minh City) was worried when she learned that the product she was using was fake. "I used to believe in the recommendation of a famous doctor online and bought this milk for my child to drink for two months. Now hearing that it is fake, I feel insecure and have lost faith in even such big brands," Ms. Yen said.
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| Authorities inspected and discovered a business selling MSG with signs of counterfeiting trademarks and unknown origins. Photo: Bui Van Chung |
Not only milk, many other essential products such as MSG (monosodium glutamate) have also been the target of counterfeiting for a long time. MSG under the Ajinomoto brand - a familiar brand to Vietnamese consumers - has been counterfeited by imitating packaging that is almost identical to the real product. Counterfeit products often infiltrate traditional markets and small retail stores, making it difficult for consumers to distinguish.
A representative of Ajinomoto Vietnam Company said that the unit has been working closely with the Market Management force for many years to track down the production and distribution points of counterfeit goods, but this situation still continues. Counterfeit MSG products can seriously affect health if they contain uncontrolled impurities in the production process, and at the same time cause great damage to the reputation of the business and the trust of consumers.
According to the National Steering Committee 389, the subjects have taken advantage of the mechanism of "enterprises self-declaring quality" and widespread advertising activities to bring counterfeit goods into the legitimate market. Post-inspection is not strong enough, while many consumers still easily believe in advertising and prefer cheap prices, giving counterfeit goods more "room to live".
According to the Ministry of Industry and Trade , in the first 6 months of 2025 alone, authorities nationwide handled more than 50,000 violations related to smuggling, trade fraud and counterfeit goods; collected about 6,500 billion VND in budget revenue; prosecuted nearly 1,900 cases with more than 3,200 subjects. During the peak month from May 15 to June 15, 2025, the Market Management force alone handled over 10,400 cases, temporarily seizing goods worth nearly 4,000 billion VND.
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| Counterfeit goods are becoming more and more sophisticated, making it difficult for users to distinguish between real and fake goods. Illustration photo |
In Hanoi , nearly 9,600 violations were handled, collecting VND2,100 billion for the budget and prosecuting more than 115 criminal cases. In Ho Chi Minh City, the authorities handled nearly 7,800 cases, of which more than 600 were related to counterfeit goods and intellectual property infringement, with a total value of violations of about VND150 billion.
“Counterfeit and substandard products pose serious risks to consumers’ health, especially for essential goods such as food, beverages and pharmaceuticals. They also erode social trust and damage the reputation of legitimate manufacturing businesses,” said Dr Nguyen Manh Hung, Head of the Department of Supply Chain Management and Logistics at RMIT University Vietnam.
According to Mr. Hung, businesses today have to invest in protecting intellectual property rights and pursuing complex lawsuits, while counterfeiters have to bear almost no costs. This difference creates an unreasonable competitive environment and makes counterfeit goods increasingly sophisticated in the way they penetrate the supply chain.
“Improving supply chain management capacity is not only a solution to deal with counterfeit goods, but also a vital strategy for businesses to regain consumer trust and build sustainable competitive advantages,” Dr. Hung emphasized:
From an enforcement perspective, Mr. Tran Huu Linh, Director of the Department of Market Management and Development, Ministry of Industry and Trade, emphasized: "Some businesses carry out full business documents to cover up violations, only discovered during testing; the trick is to change product names to mix in, so the post-inspection stage is very important."
Mr. Linh also warned that if the post-announcement inspection process is not strictly implemented, counterfeit goods can still easily infiltrate the legitimate supply chain, regardless of technology or external labels.
Traceability technology and the role of consumers
In the context of increasingly sophisticated counterfeiting, experts say technology is an effective tool to control product origin, especially blockchain technology and anti-counterfeit packaging. Currently, some Vietnamese businesses have begun to deploy this solution on essential products such as rice, milk, and fish sauce. Consumers can scan the QR code on the packaging to check information about the origin, manufacturing unit, and shipping history.
According to Dr. Nguyen Canh Lam, lecturer in Supply Chain Management and Logistics at RMIT University Vietnam, blockchain helps store product information in a transparent, uneditable manner. “Blockchain combined with QR codes helps consumers easily trace the product journey from the place of production to the place of consumption, thereby limiting the possibility of counterfeit goods entering the official supply chain,” Mr. Lam analyzed.
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| Applying technology to trace the origin of fake and genuine goods. Illustration photo |
In addition to blockchain, anti-counterfeit packaging solutions such as sealing tapes, shrink-wraps, touch-sensitive labels, security stamps, dynamic barcodes, or special security stickers are also being applied. For high-value items, many businesses are integrating RFID or NFC chips so that users can authenticate genuine products using their smartphones.
Notably, digital watermarking technology, which has long been used to protect digital copyrights, is now being researched for application to individual pills or consumer products. According to a 2022 study published in the journal Advanced Functional Materials, the technique of watermarking with safe food dyes can be applied to individual doses of medication without affecting quality.
However, experts assert that technology cannot replace the proactive role of consumers. “People need to form the habit of scanning traceability codes, buying products from reputable sources and refusing to support products of unclear origin,” Dr. Hung emphasized.
Experts also warn that easy consumer habits, such as buying counterfeit fashion and electronics just because they are cheap, are inadvertently legitimizing the counterfeit market. As a result, illegal supply chains are expanding, directly threatening the legitimate business environment.
Ms. Tran Thi Thu Huong, Vice President and General Secretary of the Vietnam Association for the Protection of Consumer Rights, emphasized: "We cannot rely solely on management agencies or technology. Consumers need to be alert, proactive in checking, comparing and reporting if they detect any suspicions. Building smart consumer habits is the first barrier against counterfeit goods."
Mr. Vu Van Trung, Vice President of the Vietnam Association for the Protection of Consumer Rights, also recommended: “Consumers need to speak up when they discover counterfeit or fake goods… Only then will the Association and the authorities have a basis to advise and support the solution. Because currently, lack of knowledge or reluctance to report is contributing to the continued development of counterfeit goods.”
According to VNA
Source: https://baoapbac.vn/xa-hoi/202507/ung-dung-cong-nghe-de-ngan-chan-hang-gia-1047126/
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