Former beauty queen Nguyen Truc Thuy Tien was arrested in mid-May by the Ministry of Public Security’s Police Investigation Agency for allegedly deceiving consumers through false claims about the product Kera vegetable candy, which was sold on TikTok.

The case involves several high-profile individuals, including social media influencers and senior executives from Asia Life Corporation and Chi Em Rot Company, who are accused of producing and falsely advertising substandard health food products.

Authorities have accused the company of using deceptive marketing claims over health benefits while failing to disclose key ingredients, including sorbitol, which constitutes 35 per cent of the products and causes a laxative effect. The raw materials used were also found to be of lower nutritional value than advertised, with the actual vegetable powder content under 1 per cent despite the packaging claiming it was 28 per cent.

Many other brands are also having to deal with counterfeit and low-quality knock-offs.

Nguyen Manh Thang, director of Khanh Hoa Salanganes Nest Company for its northern branch said many shops advertise bird’s nest products with fresh nest content of 35-39 per cent, or even up to 70 per cent, but in reality, these are low-cost processed goods.

“Some bird’s nest businesses that purchased products labelled as containing 35 per cent fresh nest had them tested, only to find less than 1 per cent actual nest content. Producing a genuine bird’s nest drink costs VND40,000 ($1.60) per jar, while counterfeit versions are sold for as low as VND10,000 (40 US cents) per jar, confirming they are fake or imitation products,” Thang said.

According to a report from the Ministry of Industry and Trade (MoIT), the number of violations in 2024 surged by 266 per cent compared to 2023. From an economic perspective, counterfeit goods and intellectual property infringements significantly impact profits, undermine the reputation of legitimate businesses, mislead consumers, and lead them to turn away from genuine products.

According to Nguyen Thanh Hai, a member of the Hanoi Bar Association, platforms can no longer hide behind the role of “technical intermediaries” to evade accountability when such violations occur openly.

“These practices must be dealt with firmly. If a platform derives illicit profits from unlawful activities, it could be held criminally liable as an accomplice under Vietnam’s Penal Code,” Hai stressed.

Figures from the Vietnam E-commerce Association showed that, on average, 2.5 million livestream sales sessions are conducted each month, involving over 50,000 sellers. The top five platforms alone generate monthly revenues of around $1 billion.

Meanwhile, research by NielsenIQ Vietnam revealed that approximately 95 per cent of online shoppers have purchased goods via livestreams, dedicating an average of 13 hours per week to such sessions. However, violations related to counterfeit goods, tax evasion, and illicit trade are becoming increasingly sophisticated.

In Q1, the Vietnam E-commerce and Digital Economy Agency under the MoIT worked with the Vietnam Food Safety Authority and the Drug Administration of Vietnam, under the Ministry of Health, to inspect and issue eight official directives requiring e-commerce platforms to review and block listings involving banned or restricted goods. In which, the platforms removed over 33,100 products and blocked more than 11,500 violating or non-compliant storefronts.

The Domestic Market Management and Development Department (DMMDD), under the MoIT, has judged that the main cause of this issue stems from the “open business” model of e-commerce platforms. Individuals and organisations can freely list products without sufficient quality or origin verification.

Additionally, post-market inspections remain limited, and penalties are not strong enough to deter violations. Meanwhile, consumers are drawn to low prices and are easily deceived if they lack online shopping experience. The lenient mindset and willingness to accept risks among consumers directly enable unscrupulous sellers to profit.

As a result, consumers suffer losses, and legitimate businesses face severe impacts on their reputation and revenue. The competitive environment becomes distorted, while also causing revenue losses for the state budget.

Tran Huu Linh, director of the DMMDD, said the sophisticated and unpredictable tactics of counterfeit sellers on e-commerce platforms are increasing.

“These entities frequently change stall names, use images of genuine products, and post fake reviews to manipulate consumer trust. Many products are labelled as ‘official store’ without any documentation proving their authenticity,” Linh explained.

“To combat counterfeit goods on e-commerce platforms, it is necessary to establish mechanisms to strengthen control over traded goods is essential and aligns with international practices. Besides that, the authorities need to enhance inspections and monitoring of product quality,” Linh said. “This includes prioritising collaboration with independent testing organisations, particularly for high-quality requirement products like food, cosmetics, and pharmaceuticals.”