Vietnam is stepping up inspections and enforcement of intellectual property (IP) regulations across manufacturing, business operations and exports, particularly in supply chains closely linked to the US, as the country seeks to safeguard its export reputation and maintain market access.
Preventing counterfeit goods from entering export supply chains
Acting on information provided by the US Homeland Security Investigations (HSI), the Agency for Domestic Market Surveillance and Development under the Ministry of Industry and Trade, in coordination with the Ministry of Public Security's Cybersecurity and High-Tech Crime Prevention Department, recently uncovered a factory producing nearly 50,000 pairs of counterfeit shoes with Nike, Nike Air and Air Jordan trademarks for export to the US.
The case is regarded as one of the largest and most sophisticated IP infringement cases uncovered in recent years, with suspected links to organisations and businesses in the US, China and Vietnam.
Investigators said the operation exploited international contract manufacturing arrangements by using seemingly legitimate but allegedly forged documents to introduce counterfeit products into cross-border supply chains.
The Ho Chi Minh City-based contractor, identified as MP Company, told investigators that it had manufactured the products under a processing contract with F.C.T Company, using materials supplied by its foreign partner before returning the finished products for export.
However, documents submitted by the company showed that from the beginning of 2026 until the inspection, it successfully exported 11 containers of footwear bearing the Nike and Air Jordan trademarks to the US, with a declared value exceeding 25.46 billion VND (approximately 970,000 USD).
Such violations increase the risk of trade investigations, tighter customs inspections and reputational damage for Vietnamese manufacturers within global supply chains.
According to the Ministry of Industry and Trade, Vietnam's footwear exports reached nearly 12 billion USD in the first half of 2026, up 0.5% year-on-year. The US remained the sector's largest market, posting 4.55 billion USD in exports, an increase of more than 6%, outpacing the industry's overall growth.
During a recent meeting with Minister of Industry and Trade Le Manh Hung in the US, Matt Priest, President and CEO of the Footwear Distributors and Retailers of America, described Vietnam as a strategic partner and one of the most important footwear suppliers to the US market. He said Vietnamese manufacturers have earned the trust of American brands and retailers thanks to their production capacity, product quality and reliability.
Strengthening IP enforcement has therefore become a priority for ministries, sectors, local authorities and businesses seeking to protect Vietnam's export industries as overseas shipments continue to expand.
The move also comes as Vietnam seeks to preserve access to overseas markets. In May, the US launched a Section 301 investigation under the Trade Act of 1974 into Vietnam's protection and enforcement of IP rights.
The Vietnam Chamber of Commerce and Industry (VCCI) has urged businesses to closely monitor developments, warning that the investigation could eventually result in adverse trade measures, including tariffs.
Enforcement efforts intensify
The Customs Department under the Ministry of Finance said attempts to transport counterfeit goods and products infringing IP rights across Vietnam's borders remain complex despite stronger enforcement.
In recent years, Vietnamese authorities have worked closely with technology companies, digital platforms and cross-border service providers to identify, block and handle a large number of IP violations.
In 2025 alone, enforcement agencies nationwide handled thousands of IP infringement cases. Market surveillance authorities dealt with 3,306 violations in traditional markets and 599 cases involving e-commerce platforms and social media. More than 1,200 websites suspected of infringing copyright and related rights were blocked or taken down.
Customs authorities also uncovered numerous high-value shipments involving counterfeit goods and IP infringements. The number of criminal investigations, prosecutions and court cases pertaining to IP violations continued to rise, reflecting tougher enforcement.
These efforts have gained international recognition. According to the World Intellectual Property Organisation, Vietnam ranked 44th out of 139 economies in the 2025 Global Innovation Index, maintaining its position among ASEAN's stronger performers in innovation and IP protection.
For companies selling to the US, compliance with IP regulations has become increasingly essential. Businesses are also being encouraged to improve information transparency, digitise documentation and strengthen supply chain traceability.
According to the VCCI, these measures are not only necessary for managing potential risks arising from US trade actions but also crucial to enhancing competitiveness and meeting growing international expectations on compliance, product origin, quality and transparency.
