Vietnam nets 50,000 pairs of fake Nike shoes in trade fraud bust

Trade officials discovered nearly 50,000 pairs of allegedly fake Nike Inc. shoes being prepared for export in a raid on a Ho Chi Minh City factory, as Vietnam ramps up a counterfeit goods crackdown under pressure from the US.

Acting on information from US Homeland Security, inspectors found shoes and materials labelled under the Nike, Nike Air, and Air Jordan brands with a total value of more than 100 billion dong ($3.8 million) based on current market prices, according to a statement from the trade ministry’s market surveillance agency.

Vietnamese authorities described it as one of the largest and most complex intellectual property infringement cases uncovered in recent years, involving a large volume of counterfeit goods and organisations and businesses spanning the US, China, and Vietnam.

The Southeast Asian nation has stepped up its campaign against trade fraud and counterfeit goods in recent months as it faces growing pressure from the US over its widening trade surplus. The enforcement push comes as Hanoi tries to demonstrate it’s strengthening customs oversight and intellectual property protection while negotiating to avoid higher US tariffs.

The factory belongs to MP Company, which told investigators it had documents- including processing contracts, emails exchanged with partners that it said authorised the use of the Nike trademark, and export records- to support its claim that the shipment was legitimate, according to the statement. Bloomberg was unable to independently contact MP Company, which was described as headquartered in Ho Chi Minh City. 

Eleven containers of Nike and Air Jordan branded shoes have already been shipped from the facility to the US this year, with a declared value of about 25.5 billion dong, according to the agency, which cited company records. Nike Inc. said it had never granted licenses or entered into any agreements with MP, nor had it authorised either company or any individuals associated with them to represent or act on its behalf, the statement said. A representative for Nike Vietnam wasn’t immediately available for comment. 

The enforcement action comes as Vietnam continues to wrangle over the terms of a final trade deal with the US. Talks have stalled over issues including trans-shipment, market access and Vietnam’s large trade surplus with the US, which has only continued to grow as manufacturers shift production from China. Officials are expanding the investigation into the origin of raw materials and partners involved in the case.