Fake, artificial, false - giả
Counterfeit money - tiền giả

Background
Vietnam’s counterfeit market value amounts to $133 million (source: Havocscope Global Market Indexes and the 2007 Global Software Piracy Study revealed a piracy rate of 85%, equalling a loss to the software industry of $200 million.

The good times are rolling in Vietnam right now; the economy is growing at an incredible rate (8.5% in 2007, the highest rate in Asia for that year) and it is currently seen as one of the most fashionable holiday destinations. The country offers rich pickings for visitors; beautiful beaches, ancient temples and a fascinating cultural heritage.

But its reputation as one of Asia’s booming economies is being sullied by increasing counterfeiting and piracy problems. According to the Hanoi government's own reports, authorities only uncover about 20% of the cases in the widespread practice of producing and selling counterfeit goods on the market. Gathering data for statistics is notoriously difficult to achieve in this Communist country and it is not difficult to see why foreign investors might be put off.

As the newest member of the World Trade Organization, the government is now under even greater pressure to crack down on copyright violators and significantly reduce the sale and export to other countries of Vietnamese counterfeit goods.

Action against the counterfeiters
Despite Vietnam’s Intellectual Property Law, which came into effect in 2006, counterfeiting is still a major problem that threatens the country’s potential for attracting foreign investors, as well as the health and welfare of its citizen and visitors
The counterfeiters have traditionally operated without fear of arrest and pirated software, DVDs and photocopied books are sold openly at marketplaces and shopping outlets. Counterfeit products ranging from luxury goods and liquor to hardware, software and pharmaceuticals are flooding the Vietnamese market and surfacing in other countries too.

Vietnam has signed several international intellectual property treaties, yet lax enforcement of IP protection continues to allow counterfeiters to operate freely and lucratively. In 2007 a helping hand came in the form of agencies from the EU and USA, when they organised an intellectual property rights workshop in Ho Chi Min City. The focus of this workshop was on helping Vietnamese authorities better identify fake goods and Vietnamese customs workers were instructed in EU and US border customs techniques. (See news stories on the left for a link to the full story).

Counterfeit pharmaceuticals are recognised as an ever-increasing problem in Vietnam and there is a variety of legislation that comes into force when a specific problem arises. Article 9 of the Pharmaceutical Law lists 5 ‘strictly forbidden acts’, which are designed to prevent drug counterfeiters from operating. And the Criminal Act lists the punitive measures that are applied to counterfeiters, including imprisonment of up to 20 years and fines of up to 50 million VND (just over 3,000 USD).

Back in 2005, foreign-invested enterprises, including world-leading multi-national corporations such as Unilever Vietnam, Nike, Glaxo Smith Kline, set up the Vietnam Anti-Counterfeiting and Intellectual Property Protection Association (VACIP). VACIP’s role is to act as a forum to help member enterprises share their experiences and strategies for fighting counterfeit and intellectual property violations.

The establishment of government-approved organisations such as VACIP reflects Vietnam’s commitment to improving the country’s intellectual property laws and crack down on counterfeiters. However, the pressure is on for more to be done. The country is being made acutely aware that Vietnam’s current economic success will quickly dissolve if it is not seen globally to be dealing with this problem.

Products to look out for
Counterfeit alcohol
Vietnam has a big problem with the illegal distillation and trading of counterfeit alcohol. Wine, vodka and brandy are all produced under both foreign and Vietnamese brand names. Major rings of these illegal distilleries have been broken and thousands of bottles of counterfeit alcohol have been uncovered in raids. Avoid purchasing alcohol from street vendors, as the quality cannot be assured and if your usual tipple doesn’t taste quite right assume the worst and don’t finish it off. Sometimes it is obvious from the label that it is counterfeit but it’s not necessarily that easy to ask to inspect the bottle. Proceed with caution and think about where you make your alcohol purchases. People have died from consuming phoney alcohol in Vietnam

Counterfeit books
Book piracy is big business in Vietnam with a wide range of bootleg novels, travel guides and history books readily available from markets and street vendors across the country. Backpackers are approached at cafés by mobile sellers, often children, with boxes of books containing popular Western books, carefully selected for the traveller mindset and selling at a fraction of the price of the original. The quality may look good on first inspection, but they are badly glued together and the pages will soon start shedding. It’s a tough decision to make: do you save yourself some money and pay the illegal vendors, or do you contribute to the Vietnamese book industry and help the country as-a-whole continue in its economic upturn?

Counterfeit pharmaceuticals
Vietnam is one of the developing countries of the Western Pacific region, also including China and the Philippines, with the most reported cases of counterfeit pharmaceuticals – a staggering 49% of drugs produced in this region are fakes. And it is when the issue of counterfeit pharmaceuticals is raised that the weak legislation mentioned above, really is highlighted. The Vietnamese pharmaceutical companies are battling against rings of counterfeiters producing and trading in fake drugs.

Back in 2001, 64% of all Artesunate (an anti-malarial drug used widely in Southeast Asia) in Vietnam was found to be fake. Other drug names that have recently found to be fakes are: the Postinor-2 morning-after-pill, Clamoxyl antibiotic and the appetite stimulant Opedroxyl. Counterfeit antiretrovirals have also been found. Click here for a recent news story on the counterfeit pharmaceutical situation in Vietnam.

Counterfeit cosmetics
Health officials in Vietnam are getting increasingly concerned at the growth in counterfeit cosmetics in the country, large volumes of which are being smuggled into the country from China. All manner of counterfeit creams and makeup have surfaced in Vietnam. Most recently skin-whitener, which is very popular in Asia, has been targeted as a problem. The government is trying to put a stop to this and has recently approved a sub decree on product quality control that will prevent the importation of potentially harmful cosmetics, including illegal beauty creams. Sometimes the fake products will be just homemade solutions that have been put into branded packaging, so always ensure that the container has a proper seal on it when making a purchase.

Counterfeit hardware and software
At 92%, Vietnam has the highest piracy rate in the world. It is also one of the favourite stopovers for travellers specifically looking for counterfeit bargains so business for the Vietnamese software pirates is booming and it’s almost taken for granted that if you are after software in Vietnam, you are looking for a pirated copy.

Back in 2007 Microsoft signed an anti-piracy agreement that requires the government offices to ensure they are running genuine copies of the Redmond company's software. This might seem like somewhat of a figurative gesture given the size and scale of the piracy problem in Vietnam as a whole, but Microsoft has put a lot of focus on the Vietnam problem, with Bill Gates himself even visiting the country to address the piracy issue with government leaders. His visit resulted in the signing of the anti-piracy agreement with Vietnam's Finance Ministry. Microsoft has also posted information on its Vietnam website specifically highlighting the risks that businesses face when using counterfeit software. Click here to read this information.

When it comes to hardware, criticism has been levelled at Cisco Brand Protection for being too light-handed in getting to grips with counterfeiters of their products in Vietnam. Click here for a link to a story about this and click here for link to information about how to detect counterfeit Cisco hardware.

Counterfeit fashion
Trying to buy any clothing or underwear that isn't counterfeit is virtually impossible in Hanoi, especially in the Old Quarter. In this respect, Hanoi resembles Bangkok in the overwhelming array of counterfeit fashion items that are openly sold and even shops that look quite reputable will have fake stuff for sale. The obsession with branding even carries over into the local handicraft trade with traditional Vietnamese silk purses, for example, bearing poppers and buttons with well known brand logos on them. Of course when buying an item like that it is obvious it has nothing to do with, say, Dolce & Gabbana, or when you look at a tracksuit emblazoned with the 'adidas'  logo but the label inside says 'Xin Bao', no one is being fooled, but the blatant transgression of IP law that is being perpetrated by the (predominantly Chinese) clothing and shoe manufacturers, is quite astounding.

Counterfeit banknotes
Hong Kong dollars, US dollars and the local currency Vietnamese dong all get counterfeited in Vietnam. In 2007 a stash of counterfeit HKD 1,000 notes were found that were apparently so perfect that experts claimed that they might not even be detected by some scanners. Hong Kong dollars are in demand in Vietnam because many Vietnamese people need to change their VND into HKD as they like going to Hong Kong to buy electronics and jewellery.

To avoid landing yourself with counterfeit banknotes be extra vigilant when you receive change back and make sure you only change money at the bank. The banknotes come in denominations of 200, 500, 1000, 2000, 5000, 10,000, 20,000, 50,000 and 100,000, 200,000 and 500,000 dong. Avoid paying with larger notes as it can be difficult to get change, but also so you don’t get slipped some counterfeit currency in return. In a bid to stave off the counterfeiters, coins are being reintroduced and these come in the value of 1000, 2000 and 5000 dong.

Shopping in Hanoi
Vietnam has a great deal to offer visitors in terms of shopping experiences and Hanoi, considered the artistic centre of the country, has a fantastic selection of everything from works of art, crafts and local handiwork to beautiful silk clothing, made-to-measure suits and leather and silk footwear. You can avoid the counterfeit trail and still come home with your suitcase or backpack bulging with wonderful, genuine items, and you won’t feel like you’ve burned a hole in your pocket either. Some of the best buys on offer include glazed pottery, classic Vietnamese lanterns, lacquer ware, embroidered textiles, fine furnishings and beautiful silk and linen garments. Antiques are also available but you need to take care to distinguish between real antiques and items that look antiquated but actually aren’t, although the price tag would indicate otherwise. Buying a fake antique is alright, as long as you aren’t paying the price of a genuine antique! Also you will be overwhelme by the amount of fake goods on sale both at market stalls and at reputable-looking outlets as well. If it is cheap clothing you are after it is actually a challenge finding anything that isn't emblazoned with fake branding. But there are shops that are selling genuine, low-cost clothing. There are chains outlets such as Bossini for example, and small one-off boutiques with their own brands that are both fashionable and affordable.

The Old Quarter
A journey into the soul of Hanoi, the Old Quarter is the place to go for a genuine Vietnamese shopping experience – and is the best place to pick up a plethora of souvenirs and presents. Here the tourists rub shoulders with locals and there is street after street of shop houses offering a piece of Vietnam that every tourist can bring home, such as handicrafts, clothing, and locally grown coffee beans (including the (in)famous Weasel coffee beans, which has passed through the digestive tracts of weasels!). It is a veritable maze of over 30 streets, each named after the goods that are sold on it.

There are three main tourist locations in the Old Quarter. One is Hang Gai, or “Silk Street”, where silk goods, tailoring services and a wide variety of souvenirs are on offer. The European-influenced Nha Tho, or "Cathedral Street," includes St. Joseph's Cathedral and the square, dominating the tree-lined street and surrounding area. Some of the tiny, traditional shop houses are boutiques aimed at those with money to spend. Certain streets in the Old Quarter are aimed more at backpacker trade, such as Hang Bac and Hang Be, with dozens of shops selling lacquer ware, ethnic and natural product goods.

War souvenirs
War souvenirs are available all over Hanoi. It might look like equipment salvaged from the American War but is probably just a reproduction. Fake Zippo lighters engraved with platoon mottos are available everywhere. There are some genuine Zippo lighters out there so it is good to know the difference. Click here for more information on Zippo lighters in Vietnam.

Silk
Hanoi is particularly renowned for its silk. Vietnamese silk is of a slightly inferior quality compared to Thai and many shops don't actually sell 100% silk, but prices are lower and the tailoring services also offered are great value. You can order made-to-measure suits, dresses, ball gowns, shirts and trousers in any design. If you bring along a favourite item of clothing and you can use it as a template to get the perfect fit. There are also silk accessories on offer, such as sleeping bags, scarves and handcrafted silk bags and shoes.

There are literally masses of silk shops in Hanoi, particularly on Hang Bong and Hang Gai. Kenly Silk on Hang Gai has a very good reputation, but it also boasts Bill Clinton’s mother-in-law as a past patron so the prices here will be higher!

Lacquer ware
The Old Quarter houses countless lacquer ware shops selling items such as boxes, bowls, photograph albums, vases and trays. However not all of the lacquer ware is made in the traditional way and mass-produced goods, using industrial colour and lacquer imported from Japan, have flooded the market. The lower-grade lacquer ware can be distinguished by giving it a sniff – you shouldn’t be able to smell a hint of paint.

Anh Duy on Hang Trong and Minh Tam on Hang Bong are two quality lacquer ware shops located in the Old Quarter, offering more unusual variations made by skilled craftspeople.