When Vietnam’s police raided two warehouses in Ho Chi Minh City earlier this year, they uncovered more than 23,000 pairs of counterfeit slippers bearing the logos of brands like Nike, Adidas, Crocs, and Gucci. The seizure. Worth VND 2bn (£57. 559; $76,053), was part of a broader effort to combat a thriving black-market industry in the country.

Rising International Pressure

Authorities launched a nationwide security operation on 7 May to address intellectual property violations, including counterfeit goods, online piracy, and trademark infringements. The move follows a report from the Office of the United States Trade Representative that identified Vietnam as a “priority foreign country” for IP concerns for the first time in 13 years.

“Vietnam has been branded the world’s worst offender on IP rights,” the report stated. The designation comes amid heightened tensions from US President Donald Trump’s trade war, with Vietnam facing potential new tariffs if it fails to improve enforcement.

Targeting Major Market Hubs

One of the main battlegrounds for the enforcement action is Saigon Square and the neighboring Ben Thanh Market in Ho Chi Minh City. These markets are among Vietnam’s largest hubs for counterfeit goods. In mid-May, authorities conducted surprise inspections and confiscated counterfeit items, issuing fines totaling over $19,000.

“Enforcement has become stricter,” said Thanh Truc, a vendor at Saigon Square, who recently sold a replica Loewe t-shirt, normally priced at $500, for just $17. She noted that raids typically focus on high-value items like luxury handbags or suitcases, but the current enforcement action is more widespread.

Despite intensified efforts, local vendors remain unfazed. Thanh Truc explained that many have adapted to police raids by receiving warnings through a system of whistles. Even after recent inspections, she said, business continues as usual, with some stores displaying fewer branded items but still keeping stock in the back.

Economic and Social Divisions

The enforcement action has sparked mixed reactions among locals. Thi Nguyen, a clothing designer in Ho Chi Minh City and Da Lat, welcomed the enforcement actions. She argued that the counterfeit industry not only infringes on intellectual property but also devalues Vietnam’s retail market. She is now preparing to invest more in her business and raise prices.

“Vietnam has no shortage of highly skilled tailors and hand embroiderers, but many of them are overlooked and do not receive the income they deserve,” she said. “Quite a few eventually end up working in factories producing counterfeit goods.”

Not everyone is in favor of the security operation. Huy, a Da Nang office worker, prefers buying counterfeit clothes like soccer shirts and shoes because they are “cheap, convenient, and easy to buy.” He argues that arresting vendors does not solve the problem if counterfeit goods remain readily available.

In Vietnam, 60% of the population lives in rural areas, and the average monthly income is just $225. For many, counterfeit goods represent the only affordable option. Thi Thanh Huong Tran, an associate professor at SKEMA Business School who studies ethical consumption, supports this view.

“Even though [Vietnamese people] know it’s fake… in a context where they don’t have the money to afford the real thing, for them it’s the most suitable option they have,” she said. “And it makes them feel happy, so [they think] ‘why not?'”

She added that the counterfeit market does not directly compete with luxury brands, as consumers who cannot afford genuine items are unlikely to switch if fakes are unavailable. “The potential revenue loss for international luxury brands is negligible,” she explained.