75% of cosmetics on the market are fake and smuggled goods.

Original• March 31, 2018 06:31

Fake cosmetics are rampant in most markets and cosmetic stores.

Counterfeit cosmetics sold at a night market in Ho Chi Minh City. PHOTO: NGOC DUONG

The above information was confirmed by Ms. Nguyen Ngoc Tuyet Trinh, Director of Communications and External Relations of L'Oreal Vietnam Company at the workshop "Improving the effectiveness of coordination between businesses and enforcement forces in the fight against counterfeit goods and infringement of intellectual property rights". The workshop was jointly organized by the French Development Agency in Vietnam (AFD), the Market Management Department (Ministry of Industry and Trade) and Expertise France in Ho Chi Minh City today, March 30.

According to Ms. Trinh, the problem of counterfeit and smuggled cosmetics is widespread, causing the official market to shrink, causing huge losses to businesses, the state to lose tax revenue, and the fight against counterfeit goods to face many difficulties.

At the conference, representatives of many businesses pointed out that the most counterfeited cosmetics are: mascara, eye makeup sets (3-in-1), skin care sets, hair wax, hair dye, lipstick, eye shadow, perfume... Businesses reported that counterfeit cosmetics are sold openly and most in Ho Chi Minh City in the Go Vap market area, Kim Bien market, stores in District 5, District 10... In Hanoi, they are concentrated in Phung Khac Hoan market, Dong Xuan market, and Xanh market... The selling price of these counterfeit products at the market is only from 20,000 - 120,000 VND/product. At cosmetic stores, the price is from 80,000 - 250,000 VND/product.

In particular, according to businesses' feedback, many foreign cosmetics that have not been announced are being sold at famous cosmetic chain stores in Vietnam.

Speaking at the conference, a representative of the Lacoste brand said that the unit had discovered up to 5 factories producing fake T-shirts of this brand in Vietnam with a production capacity of up to hundreds of thousands of units per year. This product was exported to Thailand and then rebranded as Thai crocodile T-shirts and sold at 3-4 times higher prices. This representative also said that in 2017, there were about 8,000 fake Lacoste T-shirts made in Vietnam.

Mr. Kieu Nghiep, Head of the Anti-Counterfeiting Department, Market Management Department, said that the situation of smuggled and counterfeit goods circulating in the market is alarming. Mr. Nghiep informed that recently, many large-scale and serious cases have been investigated and discovered, these cases are mainly related to goods of foreign origin being smuggled into the domestic market. Typical examples include the production of fake fertilizers by Thuan Phong Company, the production and trading of cosmetics and functional foods by TS Company, and the trading of silk by Khai Silk Company. "Thereby, it shows that the fake origin of products circulating in the market is very alarming," Mr. Kieu Phong emphasized.

In 2017, the market management force coordinated with functional agencies, businesses, and associations to inspect and handle more than 19,000 violations, with a value of infringing goods of more than VND 518 billion, and imposed administrative fines of more than VND 73.8 billion.

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