Why Vietnam's counterfeit market matters to global trade

Vietnam's underground economy in counterfeit luxury goods has grown into one of the world's largest operations, generating billions of dollars annually in fake handbags, watches, and apparel. The Trump administration has made the suppression of this trade a priority, signalling to Hanoi that deeper US-Vietnam economic ties depend on dismantling the black market infrastructure.

Local opinion in Vietnam remains divided. Factory workers and traders dependent on the counterfeit supply chains view a crackdown as an economic threat, while business owners and government officials focused on legitimate exports see it as necessary to protect Vietnam's reputation and trade relationships.

The move carries implications beyond Vietnam itself, affecting supply chains and intellectual property enforcement across Southeast Asia and raising questions about how governments balance enforcement with economic disruption in regions where informal economies sustain millions of livelihoods.