A global hub for fake luxury goods, Vietnam cracks down on its black market

On June 10, police in Thanh Hoa province dismantled a ring that manufactured and sold more than 10,000 counterfeit jewellery items. The fakes imitated brands like Bvlgari, Cartier, Louis Vuitton, and Tiffany & Co, and generated an estimated $1,140,000 in illicit profits for the counterfeit syndicate.Market stalls in Ho Chi Minh City and Hanoi have shuttered, while police have stormed warehouses, clothing outlets and sneaker stores.Locals, however, are divided by the crackdown. And while it appears to be forcing some vendors out of business, others are hoping for a boon.Huong Thi Nguyen designs, makes and sells her own clothing across multiple stores in Ho Chi Minh City and Da Lat. The way she sees it, not only does the counterfeit industry violate the IP rights of designers like herself, it also "makes Vietnam's retail market chaotic and turns it into something of a joke".She says customers are willing to spend $75 on a fake designer dress which appears authentic, but complain when charged half that for a custom piece – "even when it's made with quality fabric and good tailoring"."Vietnam has no shortage of highly skilled tailors and hand embroiderers, but many of them are overlooked and do not receive the income they deserve," she says. "Quite a few eventually end up working in factories producing counterfeit goods."Now that those counterfeit sellers are being forced to close, she is preparing to invest more in her business and raise prices."I feel more confident operating in a business environment that is cleaner, more transparent, and fairer," she says. "This isn't really about winners and losers. It's about restoring fairness and putting right and wrong, genuine and fake, back into their proper place."