In Vietnam, IP infringement becomes a crime mainly when someone deliberately deals in counterfeit trademark or geographical indication goods, or infringes copyright, on a commercial scale or above thresholds of illegal profit, damage or value set in the Penal Code; producing or trading counterfeit goods is a separate offence. Ordinary lookalike branding, patent disputes and small-scale infringement are normally handled through administrative or civil routes instead.
For a foreign brand owner, a criminal case can be the strongest tool against a large counterfeiting operation, because investigators have powers that neither you nor administrative officers have. It is also the route over which you have the least control. This guide explains when the criminal route is realistic, how a report is made, what part the right holder plays, and how to avoid using a criminal complaint as a pressure tactic in what is really a commercial dispute. It is general information; thresholds and procedures should be checked with a licensed Vietnamese lawyer.
Which IP-related conduct is criminal
The Penal Code contains several provisions relevant to brand owners. One group concerns counterfeit goods in the broad sense: producing or trading goods that are fake in substance or carry counterfeit marks, with heavier provisions for fake food, medicines, animal feed, fertilisers and similar products that put health or safety at risk. Another group concerns intellectual property directly: infringement of copyright and related rights, and infringement of industrial property rights, which in practice targets counterfeit trademarks and geographical indications.
Criminal liability for the IP offences generally requires intent and a commercial scale, combined with thresholds of illegal profit, damage caused to the right holder or value of the infringing goods. Earlier administrative sanctions or convictions for similar conduct can also matter. The figures are set in the Code and can change with amendments, so rely on a current reading rather than numbers quoted in older articles.
An important feature of Vietnamese criminal law since the 2015 Penal Code is that commercial legal entities, not just individuals, can be criminally liable for certain offences, including some counterfeiting and IP crimes. This makes a difference when the infringer is a company rather than a lone trader. Patent infringement, by contrast, is generally not treated as a crime, and disputes over the scope of a patent belong in civil proceedings.
Criminal, administrative or civil: which fits your case
The same infringing conduct can sometimes be handled by more than one route, and authorities decide whether a case crosses the criminal line. The table gives a rough guide to how practitioners think about the choice.
| Feature of the case | Likely route | Why |
|---|---|---|
| Small quantities in a few shops | Administrative | Below criminal thresholds; quick removal is the priority |
| Factory, warehouse or network across provinces | Criminal report, possibly with administrative support | Scale and organisation can meet the thresholds; investigative powers are needed |
| Fake products that endanger health or safety | Criminal report | Specific offences cover dangerous counterfeits regardless of trademarks |
| Competitor using a similar but distinct brand | Civil or administrative | Likelihood of confusion is arguable; not a counterfeit in the criminal sense |
| Patent copied in a product | Civil | Patent infringement is generally not a crime; technical assessment is needed |
| Repeat infringer after earlier sanctions | Criminal report may become realistic | Prior sanctions can affect whether the conduct meets criminal conditions |
Authorities make the final call. Filing a criminal report does not oblige the police to open a case, and a case that starts as criminal can be transferred to administrative handling if the conditions for prosecution are not met.
How a criminal report is made and handled
The outline below describes the usual flow. Procedural time limits apply at each stage, and your lawyer should track them.
- Preparation. Assemble proof of your rights, evidence of the infringement and its scale, test purchase records, identification guides and, where relevant, evidence that products are dangerous.
- Report to the investigation agency. A written denunciation or report of crime is lodged with the police investigation agency with jurisdiction, usually the economic police for counterfeiting.
- Verification. The agency verifies the information, may conduct inspections and seizures, gathers evidence and may request an expert assessment on infringement and on the value of goods.
- Decision to prosecute or not. The agency decides whether to institute a criminal case. If it decides not to, the matter may be transferred for administrative handling.
- Investigation and prosecution. If a case is instituted, investigators build the file, the procuracy decides whether to indict, and the court tries the case.
- Civil claims within the case. As the injured party, the right holder can claim compensation within the criminal proceedings, which saves bringing a separate civil suit.
Throughout the process, the right holder may be asked for more samples, identification at inspections, documents on its rights and figures for its losses. Responsiveness matters; files can stall when information from the right holder is slow to arrive.
The right holder's role and rights in a criminal case
Injured party status. If the infringement caused damage to you, you can participate as the injured party or as a civil claimant. That status gives procedural rights such as presenting evidence, requesting certain steps and claiming compensation.
Representation. You can appoint a lawyer to protect your interests in the proceedings. For a foreign company, this is how participation works in practice, since attending every step in person is rarely realistic.
Information. You will not see everything in the investigation file, and parts of an investigation stay confidential. Ask your lawyer which documents you are entitled to receive at each stage.
No control over prosecution. For most counterfeiting and IP offences, the state decides whether to prosecute; your withdrawal does not automatically end the case. Bear this in mind before filing as a negotiation tactic.
Compensation. A conviction does not automatically mean you are paid. Compensation must be claimed and proven, and recovery depends on the defendants having assets.
Witness obligations. Your staff or investigators may be asked to give statements or appear as witnesses. Prepare them, arrange interpreters where needed and make sure what they say matches the documents you filed.
Evidence that helps investigators take a case
Investigation agencies receive many reports and prioritise those that look both serious and provable. A report that answers the obvious questions up front is far more likely to be verified quickly. Useful material includes:
- Proof that your rights are valid in Vietnam, with certified translations and a legalised power of attorney for your representative.
- Several documented test purchases from different points in the chain, showing that the goods are offered repeatedly and not by accident.
- Indications of scale: the number of outlets supplied, volumes seen in a warehouse, frequency of deliveries, online sales counts or shipping records.
- A clear identification guide explaining how genuine and counterfeit goods differ, which officers can use at an inspection.
- Evidence of intent, such as earlier warnings, signed undertakings, previous administrative sanctions or communications showing the target knew the goods were fake.
- For dangerous products, any test results or expert opinions showing the risk to health or safety.
- A realistic estimate of the damage to your business, with the basis for the figure explained.
Evidence must be gathered lawfully. Investigators can be deceived as easily as anyone, and evidence obtained by trespass, hacking or misleading people about who you are can weaken the case and expose your investigators to liability. Keep your private investigation within the law and leave coercive steps to the authorities.
Dangerous counterfeits: food, medicines, cosmetics and parts
Counterfeits that put people at risk are treated very differently from fake handbags. Fake medicines, foods, food supplements, cosmetics, animal feed, fertilisers, pesticides and safety-critical parts such as brake pads or electrical components can cause real harm, and the Penal Code contains specific, heavier provisions for several of these categories. Authorities give such cases higher priority, and several agencies, including health and agriculture authorities, may become involved.
If your product falls into one of these categories, say so clearly and early in your report, and support the risk with whatever evidence you can obtain lawfully, such as laboratory analysis of a test purchase. Consider your own obligations too: if counterfeits of your product may have harmed consumers, you may need to communicate with regulators, distributors and the public, and you should take advice on how to do that without admitting liability for products you did not make.
Speed matters most in these cases. Every day dangerous fakes stay on the market increases the risk of harm and of reputational damage to the genuine brand. Make sure your team knows who is authorised to file a report and coordinate with regulators without waiting for approvals from several layers of management.
Using the criminal route responsibly
A criminal report is a serious step. It mobilises state resources and can lead to detention and prosecution of individuals. Vietnamese law also penalises knowingly false accusations. For these reasons, use the criminal route for genuine, serious counterfeiting, not as leverage in a contract dispute, a dispute with a former distributor over unpaid stock, or a disagreement about whether a competitor's brand is too similar.
Reputational considerations matter too. A criminal case against a former partner can become public and may affect your relationships with other Vietnamese partners, employees and officials. In many cases, combining administrative enforcement with a civil claim achieves the business aim without the escalation that a criminal case brings.
If you do proceed, be accurate. Describe the facts as you know them, separate evidence from suspicion, and avoid exaggerating scale or losses. Investigators respond better to a measured, well-documented report than to a dramatic one, and accuracy protects you if the case later develops in an unexpected direction.
When you need a Vietnamese lawyer
Criminal IP enforcement should always be handled with a licensed Vietnamese lawyer. The decision whether to report, how to frame the report, what evidence to attach and how to participate in the proceedings all have consequences for you as well as for the target. A lawyer with criminal and IP experience can judge whether the facts are likely to meet criminal conditions and whether a parallel administrative or civil route would serve you better.
You also need a lawyer if your own company becomes involved on the other side, for example if counterfeit goods are found in your distribution chain or if a former partner files a complaint against you. Corporate criminal liability means that companies, not just individuals, need to take compliance seriously. If you are unsure whether a situation is criminal at all, you can ask a lawyer on AI Co Van (aicovan.com) for an initial orientation before engaging a firm.
Avoid anyone who promises to make a case happen through relationships or informal payments. Apart from being illegal, such arrangements undermine the case itself and expose your company to serious liability.
Frequently asked questions
Is selling fake branded goods always a crime in Vietnam?
No. Criminal liability for counterfeit trademarks generally requires intent, a commercial scale and thresholds of profit, damage or value set in the Penal Code. Smaller cases are normally handled administratively. Dangerous fake products such as medicines and food are covered by specific offences.
Can a company be prosecuted for counterfeiting in Vietnam?
Yes. Since the 2015 Penal Code, commercial legal entities can be criminally liable for certain offences, including some counterfeiting and IP crimes. Individuals within the company may also be liable for their own conduct.
Can I withdraw my criminal report if we settle?
For most counterfeiting and IP offences, prosecution is decided by the state, so withdrawing your report does not automatically end the case. A settlement may affect sentencing or compensation, but you should not file a report expecting to control the outcome.
Do I get compensation in a criminal case?
You can claim compensation as the injured party within the criminal proceedings, but you must prove your loss, and actual payment depends on the defendants having assets. A conviction alone does not pay you anything.
Is patent infringement a crime in Vietnam?
Patent infringement is generally handled through civil and administrative routes rather than criminal law. Disputes about whether a product falls within the claims of a patent need technical assessment, which is a matter for civil courts and expert bodies.
What happens if the police decide not to open a case?
If the agency decides not to institute criminal proceedings, the matter may be transferred for administrative handling. You can also pursue a civil claim. Your lawyer can explain whether and how a decision not to prosecute can be challenged.