Stock Markets May 27, 2026 01:47 AM

Counterfeit Trade Persists in Vietnam Despite U.S. IP Pressure and Local Crackdowns

Markets identified by Washington remain active as authorities mount intermittent enforcement ahead of a U.S. tariff probe deadline

By Derek Hwang

Visits to a major wholesale market on Hanoi’s outskirts found a thriving trade in imitation apparel and ongoing access to streaming sites flagged by U.S. authorities, even after Vietnam was designated a priority foreign country for intellectual property rights and announced a limited domestic enforcement campaign.

Counterfeit Trade Persists in Vietnam Despite U.S. IP Pressure and Local Crackdowns

Key Points

  • Ninh Hiep wholesale market in Hanoi remains a hub for counterfeit clothing and related goods despite periodic enforcement actions.
  • The U.S. Trade Representative designated Vietnam a "priority foreign country" for IP rights on April 30 and highlighted online piracy sites believed to operate from Vietnam, which remained accessible as of May 27.
  • The U.S. designation coincided with a surge in Vietnam’s exports to the United States, producing a first-quarter trade deficit with Hanoi of $54.8 billion.

Hanoi’s sprawling Ninh Hiep wholesale market continues to serve as a busy distribution point for counterfeit clothing and other imitation goods, according to two visits by Reuters journalists this month. Despite publicised enforcement actions and a short-term government campaign against counterfeits and online piracy, sellers at the market described the pattern of occasional raids followed by a quick return to normal trading.

Vendors at multiple stalls displayed knockoff garments branded with names such as Ralph Lauren, Calvin Klein, Gucci, Gap and Alo Yoga. Shop assistants acknowledged the merchandise was counterfeit and said much of it arrived from Guangzhou, China, while a smaller portion was produced domestically. Tags in Chinese were visible on many items.

"Police come once a year with a TV crew. They film the seizure of a shop, and then it’s business as usual," said a seller at her stall showing fake Ralph Lauren polos at Ninh Hiep. Another vendor described a recent police visit that led some shops to reduce public displays of counterfeit brands, but noted: "Fakes are still available in our storage if ordered."


Official designations and government actions

On April 30, following a U.S. review of intellectual property enforcement, Washington designated Vietnam as the world’s worst offender on IP rights and classified the country as a "priority foreign country" - the only economy added to that worst category in the U.S. ranking in 13 years. The designation came with a warning that the United States could open a formal probe by the end of the month that might lead to trade tariffs.

Vietnam’s foreign ministry responded to the designation by saying the country had made "strenuous efforts" to protect intellectual property and urging the United States to provide "an objective and balanced assessment of Vietnam’s efforts and achievements." The USTR and Vietnam’s foreign ministry did not respond to requests for comment on the market visits reported here.

Shortly after the USTR announcement, the Vietnamese government implemented a campaign aimed at counterfeits and online piracy from May 7 to May 30. This followed a similar crackdown last year after the U.S. announced tariffs on certain imports from Vietnam that initially reached 46% and have since been reduced to 10%.


Online piracy and sites of concern

The U.S. Trade Representative also highlighted streaming websites believed to be operating from Vietnam that offer pirated films and television series and draw significant monthly traffic. Websites flagged by the USTR, including MyFlixerz, were reported as remaining accessible as of May 27, despite the announced enforcement campaign.


Market dynamics and trader perspectives

Reuters reporters visited Ninh Hiep on two occasions this month - once prior to the enforcement campaign and again on May 25 - and spoke with roughly 10 stallholders. All described enforcement operations as recurrent but limited in lasting effect. Most spoke without giving their names because of the sensitivity of the subject.

Motorbike riders were observed moving through Ninh Hiep’s narrow alleys, buying goods for resale in central Hanoi and in other shops. Vendors articulated a straightforward view of the economics at play: "As long as there is demand, there will be supply," one seller said.

Past crackdowns had some discernible impact on operations, according to traders, with enforcement efforts and a new tax system cited as factors affecting business. Authorities overseeing anti-counterfeiting did not respond to requests for comment. A separate market in Ho Chi Minh City that was listed among USTR "notorious markets" and raided by police last year remains operational.


Trade context emphasised by U.S. authorities

Washington has framed intellectual property violations in Vietnam as serious and damaging to the U.S. economy. The USTR designation occurred amid a notable rise in Vietnam’s exports to the United States earlier this year. In the first three months of this year, U.S. data showed a trade deficit with Hanoi of $54.8 billion, a figure larger than the deficits with other major exporters such as China and Mexico.

The U.S. government has repeatedly stated a policy objective of reducing trade deficits, and Vietnam has been negotiating a trade agreement with Washington for the past year. The trade surge coincided with the IP rights designation, but reported observations at markets and online indicate the flow of counterfeit goods and accessible piracy sites persist in practice.


What was observed and what remains uncertain

On-the-ground reporting at Ninh Hiep documented dozens of stalls openly offering counterfeit branded clothing, with many shop assistants forthright about the origin and nature of the products. While enforcement actions have occurred intermittently, traders described them as episodic and of limited long-term deterrent effect. The reach and effectiveness of the announced campaign against online piracy and physical counterfeits remain constrained by available reporting and the continued accessibility of sites mentioned by the USTR as of May 27.

Authorities and the USTR did not provide further comment to those seeking clarification on enforcement outcomes during the period covered by these visits.

Risks

  • Potential U.S. probe and subsequent tariffs could affect Vietnam's export sectors that rely on U.S. markets - trade and manufacturing sectors are at risk.
  • Intermittent enforcement and the continued availability of pirated streaming sites may sustain IP-related trade tensions and create market uncertainty for rights holders and legitimate media distributors.
  • Persistent counterfeit distribution channels could undermine regulatory efforts and complicate Vietnam’s trade negotiations with the United States, affecting exporters and retailers.

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