Counterfeit goods in supply chains often become a legal crisis for businesses that did not expect to face criminal scrutiny. In Vietnam, such cases rarely begin with clear warnings or direct accusations. They more commonly surface through inspections, customs checks, or third-party complaints, before escalating rapidly into enforcement actions that involve multiple parties across the supply chain.

Vietnamese authorities have increasingly shifted their focus away from individual retailers toward upstream actors such as manufacturers, importers, distributors, logistics providers, and corporate decision-makers. In this environment, counterfeit goods are no longer treated solely as an intellectual property or administrative concern. Instead, they are increasingly viewed through the lens of economic and white-collar crime, with both corporate and individual exposure.

This article explains how counterfeit goods in supply chains trigger criminal liability under Vietnamese law, why businesses and managers who did not intend to commit wrongdoing may still become implicated, and how investigations typically unfold once authorities become involved.

Who Typically Faces Legal Risk in Counterfeit Goods Cases

Legal exposure arising from counterfeit goods is rarely confined to a single party. Instead, risk is distributed across the supply chain and often extends to actors who do not initially expect to face criminal scrutiny. In practice, authorities assess involvement based on function, influence, and benefit rather than formal job titles or contractual labels.

Parties that commonly face legal risk include:

• Brand owners and intellectual property holders, who may become involved when counterfeit goods damage market integrity, consumer trust, or regulatory standing, particularly where enforcement actions require cooperation or evidence.
• Importers and distributors, who frequently seek legal assistance after goods are seized, inspections are initiated, or questions arise regarding documentation, sourcing, or valuation, even where they did not manufacture the products.
• Logistics providers and warehousing companies, as authorities trace the physical movement of goods and assess whether repeated handling of suspicious shipments indicates awareness or failure to act on clear warning signs.
• Directors, legal representatives, and senior managers, where decision-making authority, oversight responsibilities, or approval of transactions suggests a degree of control or benefit from the activity.
• Foreign companies operating in Vietnam, particularly those unfamiliar with local enforcement practices, who may face rapid escalation from administrative review to criminal investigation involving both corporate and individual exposure.

Understanding how legal risk is allocated across the supply chain helps businesses and individuals assess their potential exposure early, before matters escalate beyond their control.

What Vietnamese Law Considers Counterfeit Goods

Vietnamese law defines counterfeit goods broadly, covering products that infringe intellectual property rights, falsely indicate origin, imitate trademarks, or misrepresent quality, composition, or use. These goods are distinct from substandard products, which may fail regulatory requirements without deliberate imitation, and from parallel imports involving genuine goods.

In enforcement practice, classification matters significantly. Misunderstanding whether goods are considered counterfeit can expose businesses to criminal risk. Authorities assess not only the nature of the goods but also the surrounding conduct, including knowledge, intent, and benefit.

When Counterfeit Goods Trigger Criminal Liability

Not all cases involving counterfeit goods result in criminal prosecution. Vietnamese law distinguishes administrative handling from criminal enforcement based on factors such as scale, value, repetition, and organization.

Counterfeit activity is more likely to trigger criminal liability where it involves large volumes, significant commercial value, repeated conduct, or coordinated operations across multiple entities. Cross-border movement of counterfeit goods further increases enforcement risk.

Once criminal thresholds are met, investigations are typically transferred from market surveillance authorities to economic police and prosecutors, substantially increasing exposure for both companies and individuals.

How Counterfeit Goods Are Usually Discovered

Counterfeit goods in supply chains are often uncovered through routine inspections, customs checks, or border controls. In many cases, investigations begin after complaints from brand owners, competitors, or consumers, rather than from targeted suspicion of criminal activity.

In practice, enforcement actions frequently start from issues that appear unrelated, such as discrepancies in customs declarations, irregular pricing, or documentation inconsistencies identified during routine compliance reviews. Once suspected counterfeit goods are identified, authorities typically expand their focus to trace how the goods were sourced, transported, stored, and distributed.

What initially appears to be an isolated incident often develops into a broader supply chain investigation. As authorities examine commercial relationships and movement of goods, businesses with indirect or peripheral involvement may find themselves drawn into enforcement actions without prior warning. This systemic approach reflects the way counterfeit activity is treated as an economic crime involving interconnected actors rather than isolated violations.

Criminal Exposure for Businesses in the Supply Chain

Vietnamese enforcement increasingly evaluates how each business contributes to, enables, or fails to prevent the circulation of counterfeit goods. Liability is assessed based on role and influence within the supply chain, rather than solely on who manufactured the goods.

Businesses that may face criminal scrutiny include:

• Manufacturers and processors, where counterfeit goods are produced intentionally or where excess production enters the market unlawfully.
• Importers and exporters, particularly where irregularities in documentation, valuation, or origin are ignored.
• Distributors and wholesalers, who continue trading despite warning signs or regulatory notices.
• Logistics and storage providers, where awareness of suspicious shipments or repeated handling of counterfeit goods suggests deliberate indifference.
• Retailers, if evidence indicates knowledge or continued sales after concerns are raised.

Authorities consider economic benefit, control over information, and the ability to influence outcomes when assessing exposure.

Personal Criminal Liability for Directors and Managers

Counterfeit goods cases frequently involve individual criminal exposure. Vietnamese enforcement places strong emphasis on personal responsibility in white-collar crime matters, particularly where authority and oversight are present.

Individuals commonly examined include:

• Directors and legal representatives, who approve or fail to prevent unlawful conduct.
• Senior managers and executives, especially those responsible for sourcing, procurement, distribution, or compliance.
• Operational managers, whose decisions facilitate the movement or storage of counterfeit goods.
• Employees, where involvement extends beyond routine duties into knowledge or concealment.

Foreign managers often underestimate personal exposure, particularly when relying on local partners. In practice, authorities closely examine individual awareness, authority, and benefit.

How Criminal Investigations Usually Unfold

Investigations into counterfeit goods typically begin with inspections or seizures and expand as authorities collect evidence. Market surveillance agencies, customs authorities, and economic police often coordinate efforts, particularly in cases involving organized or repeated conduct.

Authorities may review financial records, contracts, logistics documentation, and internal communications to assess coordination and intent. Once a criminal investigation is underway, its scope and direction are largely controlled by enforcement bodies, often resulting in operational disruption before any formal charges are filed.

Business and Commercial Consequences Beyond Criminal Penalties

The impact of counterfeit goods investigations extends beyond criminal sanctions. Supply chains may be disrupted, inventory seized, and contracts suspended or terminated. Banking and financing relationships may come under pressure as compliance risk is reassessed.

Reputational damage can be severe and long lasting, particularly for businesses dependent on consumer trust or regulatory approvals. Continued scrutiny may affect future operations even after investigations conclude.

Common Assumptions That Increase Legal Risk

Some businesses assume that liability rests only with manufacturers or that reliance on supplier documentation eliminates risk. Others treat counterfeit goods as a purely administrative issue.

These assumptions often increase exposure. Vietnamese enforcement evaluates conduct, awareness, and role within the supply chain, meaning that indirect involvement or failure to act can still result in serious consequences.

Conclusion

Counterfeit goods in supply chains present a serious source of white-collar criminal risk under Vietnamese law, particularly for businesses and individuals who did not anticipate criminal exposure. As enforcement increasingly targets upstream activity and personal responsibility, matters that begin as operational or compliance issues can quickly evolve into criminal investigations.

Understanding how exposure arises and how authorities approach these cases allows businesses and decision-makers to respond more deliberately and avoid unnecessary escalation. Le & Tran assists companies, directors, and managers facing counterfeit-related investigations and disputes by providing measured, strategic guidance grounded in Vietnam’s criminal and regulatory framework. If you are dealing with enforcement action, inspections, or concerns related to counterfeit goods in Vietnam, contact us at info@letranlaw.com to discuss your situation confidentially.