Why are counterfeit goods rampant?

November 16, 2017 08:26

Although there are many tools to control counterfeit goods, those tools have not yet been fully effective.

According to the authorities, counterfeit goods are openly infiltrating the market. Many consumers always complain about this problem but easily accept and support poor quality products for profit and cheaper prices. Counterfeit goods are rampant, causing many legitimate businesses to suffer due to the leniency of consumers as well as the lax enforcement of the law by the authorities...

One of the businesses that is suffering the most from counterfeit goods is Duy Loi hammock. Few people know that the number of workers at this business has now decreased to only 1/4 compared to 3 years ago. According to Mr. Loi, the reason is that the company's products have been counterfeited. Counterfeit goods have been smuggled into the market, causing a significant decrease in market share, forcing the business to reduce production.

Sharing the same fate as Duy Loi hammocks, Non Son Company also suffered a lot of damage due to counterfeit and fake goods. Mr. Nguyen Ngoc Ty, CEO of this company, said that although they have put anti-counterfeit stamps on their products and increased propaganda to promote brand recognition, bad guys still brazenly release fake products for sale everywhere...

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It is very difficult for consumers to recognize fake and counterfeit goods.
(Illustration: KT)

Just for the two businesses mentioned above, the authorities have arrested dozens of people, including 10 cases related to Non Son products, of which one person was criminally prosecuted and sentenced to 24 months in prison. Recently, the police also arrested two more people who counterfeited Duy Loi's folding hammocks.

Lieutenant Colonel Nguyen Manh Hung, Deputy Head of Team 7 - Economic Police Department, Ho Chi Minh City Police said that most of the cases of counterfeit goods seizures are very large-scale and very serious violations. Currently, the investigation agency is trying to focus on clarifying and bringing the cases to trial soon to contribute to warning consumers as well as supporting legitimate businesses.

Counterfeit products have become so common and sophisticated that they are not only found in domestically produced products but also in foreign products distributed in Vietnam. Many businesses are frustrated by the existence of too many unreasonable things, such as domestic businesses importing foreign products for distribution but then counterfeiting and then registering copyrights and intellectual property rights in the country.

This situation is not uncommon, due to the lack of supervision of intellectual property rights from the beginning by the authorities, causing many troublesome consequences for legitimate businesses when entering the "international playground".

Mr. Nguyen Ngoc Ty, CEO of Non Son Enterprise, hopes that enterprises whose intellectual property rights are violated, whose products are counterfeited or imitated, will suffer losses in benefits but will encounter many difficulties when reporting to the authorities. Only when the authorities stand side by side and support enterprises will this problem be reduced in the future.

Obviously, we still have many tools to control counterfeit goods, but those tools have not yet been fully effective.

Mr. Nguyen Ngoc Luan, Chairman of the Saigon - ASEAN Business Club, said that in reality, businesses are facing many difficulties and are having to "swim on their own" to prevent counterfeit goods, including the problem of intellectual property appropriation. Handling involves many forces so it is very slow and if it is handled, it is almost not enough to deter due to legal entanglement.

“The club hopes to be able to join the Steering Committee 389, which is assigned the authority to supervise. If the business sector discovers any unit making or using counterfeit goods, it will suspend operations, have its license revoked, and will not be allowed to trade or receive support from businesses in the sector,” Mr. Luan proposed.

Authorities said that in the past 10 months, the country has discovered nearly 4,000 cases of counterfeit goods production and trading, arrested 300 subjects, and prosecuted 179 subjects. Typical cases include the case of medicine of VN Pharma Company, Duy Loi Folding Hammocks, Thuan Phong Fertilizer and recently, the silk products of Khaisilk...

Counterfeit goods, counterfeit goods, and fake goods exist secretly in society, not only greatly affecting the economy but also affecting the reputation of Vietnamese products in the market. This shows that the implementation of registration as well as the application of intellectual property laws to protect business rights still has many loopholes and inadequacies, so when detecting and handling, there are many difficulties, not enough deterrence.

Lawyer Phan Thi Viet Thu, Vice President of the Ho Chi Minh City Consumer Association, said that there are still no synchronous measures to combat counterfeit goods and the law enforcement is not strict. If when there is information feedback, the responsible agencies actively coordinate to act immediately, it will help businesses and consumers reduce damage, Mr. Thu clearly stated.

Vietnam is integrating and participating in many bilateral and multilateral economic agreements, and it is predicted that the situation of counterfeit goods will become more complicated and sophisticated. The implementation of anti-counterfeiting and counterfeiting in the coming time requires practical activities that go hand in hand with action.

In particular, the authorities need to maintain integrity and not accept any acts of aiding and abetting violations so that the fight against counterfeit and fake goods can be sustainable and achieve the desired results./.

According to VOV

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Why are counterfeit goods rampant?
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