The market for smuggled goods in Vietnam has been greatly affected after a Vietnam Airlines' flight attendant was arrested by Japanese police for smuggling.
Smuggled cosmetic products
Many people often buy goods overseas then bring the items through customs as their personal belongings to sell them to the local market. Because they are not taxed the smuggled products are 25%-50% cheaper. Recently, increasing numbers of flight attendants have also brought in overseas commodities into Vietnam.
Many shops that specializes in selling such products, even though they do not have permit from authorities, became popular because people feel confident in buying genuine products at cheaper prices.
However, after a Vietnam Airlines flight attendant was arrested by Japanese police for smuggling stolen goods, these shops have to find another way to import goods. Many Japanese products have also increased in prices. Khanh, owner of a shop in Thanh Xuan District said he stopped receiving orders for products that have large boxes such as formula milk or food. "We haven't increased the prices yet but the delivery may take one month longer," he said.
The incident also made shop owners become more careful and only accept goods that have invoices. Another shop that sells Japanese products on Tang Bat Ho Street said they had to temporarily stop selling formula milk because flight attendants are being scrutinized and cannot bring large bags on board. As a result, prices will increase due to transportation fees and Japan has just increased its sales tax by 8%.
However, consumers still prefer those commodities. Thuy, a local in Gia Lam District, said, "I often buy (smuggled) food and clothes because they are cheaper than other genuine products on the market and the styles are more diverse."
Head of HCM City Market Surveillance Agency Phan Hoan Kiem said all imported products must have proof of their origins, as well as additional labels in Vietnamese. The airlines have also applied stricter management and individual responsibilities on the crews.
Deputy head of the Ministry of Industry and Trade Do Thang Hai said the government has just set up a committee to prevent trading smuggled and fake goods right on the borders. According to Hai, the market for these products thrive because of consumer demand.
