Bought a "genuine product" at a low price on an e-commerce platform, only to receive a counterfeit pieced together with materials worth just a few bucks.

This kind of thing is not only a headache for consumers, but also exhausting for regulatory authorities. Recently, the General Department of Vietnam Customs released a set of shocking data: in 2024 alone, the value of counterfeit and substandard goods seized reached as high as $1.23 billion, an increase of 151.3% over last year. Smuggling, trade fraud, and counterfeit goods cases are happening one after another, and even e-commerce platforms have become the eye of the storm.

Image source: Internet

Why is the counterfeit problem so serious?

Vietnam Customs data shows that in 2024, Vietnam cracked nearly 18,000 cases involving smuggling, trade fraud, and counterfeit goods, an increase of 12.5% compared to 2023. The types of illegal goods seized are diverse, ranging from counterfeit medicines to daily necessities, covering almost every aspect of consumers' lives. The most typical case occurred in Thanh Hoa Province, where local police seized a large number of finished counterfeit bone and joint painkillers and production tools in one operation, with as many as 1,000 boxes of involved materials, showing the huge scale of counterfeit production.

Even more worrying is that criminals have already made e-commerce platforms and social networks their main channels for selling counterfeits. Vietnam Customs pointed out that the convenience of e-commerce and the secrecy of online transactions have provided a hotbed for the circulation of counterfeit goods. Many consumers are tempted by low prices, unaware of the huge quality and safety risks hidden behind them.

Vietnam cracked nearly 18,000 smuggling cases Image source: Hài quan Online

It's not just Vietnam, all of Southeast Asia is "flipping over"

Vietnam's counterfeit problem is not an isolated case. Other Southeast Asian countries are also struggling under the shadow of counterfeit and substandard goods. For example, the total value of contraband seized in the Philippines in 2024 reached 81 billion pesos, almost double that of 2023. These goods include unlicensed electronics, counterfeit luxury goods, and even some daily necessities.

Why is the counterfeit problem so prevalent in Southeast Asia? The main reasons can be summarized as follows:

1. Lagging regulation: The e-commerce market in Southeast Asia is developing rapidly, but the regulatory system has not kept pace with the industry. Many countries lack comprehensive laws and regulations for online transactions.

2. Strong consumer demand: Price-sensitive consumers are the main driving force of the counterfeit market. The temptation of low-priced goods makes many people willing to "take a gamble."

3. Diversified channels: From social media to cross-border logistics, counterfeits can reach consumers through various channels, making regulation even more difficult.

The total value of contraband seized in the Philippines in 2024 reached 81 billion pesos Image source: philstar

Why have e-commerce platforms become "disaster zones"?

The phenomenon of counterfeits entering the market through e-commerce platforms is nothing new, but it has become increasingly serious in recent years. For consumers, e-commerce platforms mean convenience, more choices, and lower prices, and these features precisely provide fertile ground for counterfeits. Low prices attract attention, and some merchants package counterfeits as "high cost-performance products" under the guise of "discount promotions," making it difficult for ordinary consumers to distinguish.

Worse still, many e-commerce platforms have loopholes in their review mechanisms. Some unscrupulous merchants use false identities to register stores, quickly complete sales in a short period and then withdraw, leaving behind counterfeits and complaints. The counterfeit problem in the Vietnamese market not only angers consumers but also severely damages the reputation of platforms.

But are platforms really "innocent"? The fact is, many platforms, in pursuit of transaction volume and the number of sellers, have not done enough to ensure product quality. Some platforms even tacitly accept this phenomenon, choosing to "turn a blind eye" as long as it does not affect overall platform revenue.

Image source: Internet

Multi-party cooperation, cleaning up counterfeits requires a "combination punch"

Faced with increasingly rampant counterfeit transactions, the Vietnamese government has begun to take action. Le Hoang Oanh, Director of the Department of E-commerce and Digital Economy of the Ministry of Industry and Trade of Vietnam, recently stated that relevant laws will be improved in 2025 to strengthen the management of cross-border e-commerce. At the same time, Vietnam Customs is also trying to use big data and technological means to improve enforcement efficiency.

But relying solely on the efforts of regulatory authorities is obviously not enough. To truly solve the counterfeit problem, a joint force is needed:

· Government: Improve laws and regulations, strengthen law enforcement, and impose harsher penalties on the production and sale of counterfeits.

· Platforms: Take on social responsibility, upgrade technical tools, and establish comprehensive counterfeit screening and reporting mechanisms.

· Consumers: Increase consumer vigilance and avoid buying goods of unknown origin due to the temptation of low prices.

Le Hoang Oanh Image source: vietnam.vn

A healthy e-commerce ecosystem needs more patience

The root of the counterfeit problem cannot be solved overnight, but Vietnam's actions in 2024 are undoubtedly a positive signal. From seizing over $1.2 billion in illegal goods to severely punishing related illegal acts, Vietnam is showing the world its determination to crack down on counterfeits. However, solving the counterfeit problem is not only about Vietnam, but also about the integrity and future of the entire Southeast Asian market.

As the e-commerce market continues to develop, the improvement of regulatory systems, platform self-discipline, and consumer maturity will become key. In the future, a healthy and transparent e-commerce environment will not only be the goal of regulators, but also the common expectation of consumers and the industry.