• Vietnam ramps up inspections on imported goods amid U.S. tariff threats.
• Luxury brands and consumer products like Prada and Procter & Gamble are under scrutiny.
• The U.S. Trade Representative lists Saigon Square as a notorious market for counterfeiting.
• Vietnam plans to introduce specialized courts for better intellectual property enforcement.

Vietnam is stepping up its efforts against counterfeiting and digital piracy after the United States accused it of being a major hub for these illegal activities, threatening possible crippling tariffs. Documents indicate that products now subject to increased border inspections include luxury goods from brands like Prada and Gucci owner Kering, electronic devices from Google and Samsung, and toys from Mattel and Lego, as stated in a document dated April 1 from the country's customs department, according to Bangkok Post, Reuters, and South China Morning Post.

This crackdown specifically targets imported counterfeit items, diverging from concerns over domestic production of fakes, which also remain significant for the current U.S. administration. Additionally, an intensified focus on illegal software usage is underway, with local inspectors sending warnings following a complaint from the Business Software Alliance (BSA), which includes tech giants such as Microsoft and Adobe among its members. This escalation in action is reported to have involved communication with dozens of companies since early April, according to Bangkok Post and Reuters.

Efforts to tighten intellectual property protections are part of a broader strategy by Vietnam to alleviate the potential imposition of a 46% tariff on exports to the U.S., which is its largest trading partner. Ongoing discussions center around reducing Vietnam's significant trade surplus and combating trade fraud, including illegal transshipments, which are also crucial points in negotiations with the U.S. administration. Prime Minister Pham Minh Chinh has urged officials to combat trade fraud and counterfeit goods aggressively, according to Bangkok Post, Reuters, and South China Morning Post.

Despite these enhanced measures, reports indicate that counterfeiting continues unabated in some areas, particularly at Saigon Square Shopping Mall in Ho Chi Minh City, recognized as a "notorious market for counterfeiting" by the U.S. Trade Representative (USTR). An attendant at the mall noted that many luxury items being sold were not authentic and originated from China, while some counterfeit goods were also reportedly produced locally. This highlights the ongoing challenge Vietnam faces despite its crackdown efforts, according to Reuters and South China Morning Post.

To bolster its commitment to protecting intellectual property rights, Vietnam is reportedly planning to establish specialized courts aimed at enforcing these rights and attracting foreign investment. A draft law proposing this initiative is set to be reviewed by parliament later in June, as part of Vietnam's efforts to strengthen its legal framework regarding intellectual property, according to Bangkok Post, Reuters, and South China Morning Post.