Vietnamese Authorities Intensify Crackdown on Counterfeit Fertilizers and Luxury Goods Infringing Intellectual Property Rights

Vietnam’s government has prioritized creating a transparent and equitable investment and business environment, as outlined in Government Resolution No. 68/NQ-CP. Central to this goal is the proactive prevention and suppression of counterfeit goods and intellectual property rights violations, which threaten both businesses and consumers.

Following directives from the Prime Minister, the Ministry of Public Security, and the Bac Ninh Provincial Police leadership, the Economic Police force of Bac Ninh province has intensified monitoring and enforcement activities. These efforts include close coordination with relevant agencies to detect and strictly handle violations, thereby safeguarding a healthy production and business climate.

A notable case involved Ha Bac Fertilizer Production Joint Stock Company, where authorities uncovered unauthorized production and packaging of counterfeit Urea 46HBF fertilizer. Although the company had a formal contract with another entity to appear licensed, investigations revealed it independently produced and packaged the fertilizer without proper authorization. This falsification deceived consumers and undermined trust in the agricultural supply market, adversely affecting farmers and legitimate businesses.

On July 7, 2026, Bac Ninh’s Investigation Police Department initiated a criminal case against LQN, Chairman of Ha Bac Fertilizer Production Joint Stock Company’s Board of Directors. LQN was indicted and temporarily detained for the crime of "Producing and trading counterfeit fertilizers." Authorities seized approximately 65 tons of counterfeit fertilizer, along with machinery, equipment, and related documents, with a total value exceeding 1 billion VND.

Intellectual property infringement extends beyond agriculture into the e-commerce sector, where counterfeit goods are increasingly sophisticated. Economic Police in Bac Ninh detected that Pham Thi Huyen used social media platforms such as Facebook, Zalo, and TikTok to advertise and sell counterfeit jewelry bearing trademarks of globally recognized brands protected in Vietnam.

During inspections, authorities confiscated 283 counterfeit jewelry items bearing the Hermès, Cartier, Chanel, Van Cleef & Arpels, and Bvlgari trademarks, valued at nearly 4 billion VND. On the same day as the fertilizer case, July 7, 2026, Bac Ninh’s Investigation Police initiated a criminal case against Pham Thi Huyen, indicting her and imposing a travel ban for the crime of "Infringing on industrial property rights."

These cases illustrate the increasingly complex methods used by counterfeiters, including exploiting social media and e-commerce platforms to market fake goods and falsifying product origins, packaging, and trademarks to mislead consumers. Failure to promptly detect and address such violations harms businesses, trademark owners, and directly threatens consumer rights, health, and property.

To combat these challenges, Bac Ninh Provincial Police urge businesses and households to strictly adhere to legal regulations in production and commerce. They warn against engaging in or facilitating counterfeit goods production or sales for short-term profit. Businesses are encouraged to register trademarks and intellectual property rights, implement traceability systems, and collaborate closely with authorities to identify and address violations.

Consumers are advised to exercise caution when shopping, especially on e-commerce and social media platforms. They should prioritize reputable sellers and carefully verify product origins, labels, invoices, and other authenticity indicators. Consumers should avoid purchasing products offered at suspiciously low prices or with unclear provenance.

The public is encouraged to report suspected counterfeit production or trade and other business violations to the police via the VNeID application or hotline to facilitate timely legal action.

Vietnamese law, under Article 195 of the 2015 Penal Code (amended in 2017), prescribes penalties for producing and trading counterfeit goods such as fertilizers, animal feed, veterinary drugs, pesticides, and plant seeds. Penalties range from fines between 100 million VND and 1 billion VND or imprisonment from one to five years, depending on the value and circumstances of the counterfeit goods. More severe offenses can result in imprisonment from five to ten years.

The government’s enforcement actions and public guidance underscore the collective responsibility of authorities, businesses, and consumers in eradicating counterfeit goods and protecting intellectual property rights. These efforts are vital to fostering a transparent, competitive business environment and supporting sustainable private sector growth in line with Government Resolution No. 68/NQ-CP.