Domestic goods struggling against fake products

Vietnamese companies are calling for a proper solution to crack down on contraband and fake products that are blocking their markets.

Vietnamese goods are fighting against fake products on the market

At a conference on November 11 to review one year of implementation of the campaign “Vietnamese people using Vietnamese goods”, many economic experts had stated that if the government does not apply a proper solution to address contraband and fake products, Made-in-Vietnam goods would lose the confidence of consumers and domestic enterprises are discouraged to produce high-quality products.

At the conference, Chi Thanh Company, which produces high-quality helmets complained that they were facing hard competition with low-quality products that are flooding the market.

The company representative said that producing low-quality helmets does not require high investments in technology and materials so are only sold at VND 20,000 – 30,000 (USD1-1.5) each, this is 3 to 8 times cheaper than branded product. Moreover, they are being sold on street pavements or open markets without being punished properly.

Director of the Hanoi branch of Sai Gon Paper Corporation confirmed that well-known products were more likely to be copied. “Consumers tend to prefer cheaper products that are easily to get the fakes,” he said.

While many Vietnamese textile companies are exporting their products to foreign markets, they are facing hard competition from foreign products right on the domestic market.

According to Nguyen Hong Huong, director of Vinatex supermarket chain, the invasion of foreign products, especially contraband items, has made them more familiar and popular to local consumers.

Addressing the conference, Le Xuan Ba, head of the Central Institute for Economic Research and Management, said it was very difficult to persuade enterprises to invest more on production and raise the product quality while the market is flooded with fakes and contraband items.

“This explains why they cannot set a firm position in the domestic market,” Ba stated.

Meanwhile, many local consumers say that though quality and design of Vietnamese goods have been improved but they remain poor, while goods prices are high (from 10-20% higher than the same imported products).

Therefore, Ba suggested that the government helps domestic enterprises upgrade technology, enhance quality-supervising systems and apply strict punishment on those found with contraband goods.

In addition, the government should also instruct and assist enterprises to concentrate more on the local market by reducing tax on VAT, materials, etc.