Nearly 50,000 counterfeit Nike shoes uncovered in HCMC before export to U.S.

Authorities have seized nearly 50,000 pairs of suspected counterfeit Nike shoes at a factory in Ho Chi Minh City before they could be exported to the United States.

The Department of Domestic Market Management and Development under the Ministry of Industry and Trade announced the case on July 24, describing it as one of the largest and most complex intellectual property infringement cases uncovered in recent years, involving cross-border operations.

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Nguyen Thanh Binh (far left), Deputy Director General of the Department of Domestic Market Management and Development, oversees the on-site inspection. Photo: DMS.

The investigation began in June 2026 after the department received intelligence from the U.S. Homeland Security Investigations (HSI) through an information-sharing mechanism. The tip-off pointed to a suspected network manufacturing shoes bearing Nike trademarks in Vietnam for export to the U.S.

Vietnamese authorities subsequently coordinated with HSI to develop an inspection plan while maintaining strict confidentiality to prevent evidence from being removed.

Further verification revealed the operation was significantly larger than initially suspected. What first appeared to involve around 12,000 pairs of shoes expanded to nearly 50,000 pairs being manufactured at a production facility.

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The suspected counterfeit shoes are difficult to distinguish from genuine products with the naked eye. Photo: DMS.

According to investigators, the counterfeit products were extremely difficult to distinguish from genuine items with the naked eye. Even the authentication codes on the shoes had allegedly been copied from authentic Nike products.

Concerned that the remaining products could soon be completed and exported, the department on July 16 inspected MP Company, based in Ho Chi Minh City, in coordination with the Ministry of Public Security's A05 Department and Ho Chi Minh City Public Security Department.

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The suspected counterfeit products seized during the inspection. Photo: DMS.

During the inspection, authorities found the company producing and storing a large quantity of finished and semi-finished footwear bearing the trademarks "Nike", "Nike Air" and "Air Jordan".

Officials seized 25,396 pairs of finished shoes carrying the Nike and Air Jordan trademarks, with an estimated value of more than VND12.3 billion (US$469,000).

They also found 20,875 shoe uppers and 10,800 pairs of shoe soles bearing Nike markings that were still being assembled, with a combined estimated value of more than VND11.2 billion (US$427,000).

Authorities estimated the total market value of the goods at more than VND100 billion (US$3.8 million).

During the inspection, company representatives said that all the products had been manufactured under a processing contract with F.C.T. Company. They claimed the raw materials were supplied by a foreign partner, while the Vietnamese company only processed the products and returned them for export.

According to company records, from the beginning of 2026 until the inspection, the business had exported 11 containers of finished Nike- and Air Jordan-branded shoes to the United States, with a declared customs value of more than VND25.46 billion (US$971,000).

However, documents provided by Nike Vietnam and a letter from the Senior Director of Global Licensing at Nike Inc. stated that Nike had never granted any license, licensing agreement or authorization to a limited liability company in the United States to manufacture or distribute products on its behalf. The company also confirmed it had not authorized any organization or individual involved in the case to represent the Nike brand.

Based on the inspection results and trademark verification, authorities concluded the products showed signs of counterfeiting trademarks protected under Vietnamese law.

According to the Department of Domestic Market Management and Development, the case is among the country's largest intellectual property infringement cases in recent years, involving a massive quantity of goods and a cross-border network of organizations and businesses.

Tran Huu Linh, Director of the department, said that the initial results demonstrate Vietnam's commitment to enforcing intellectual property rights and combating counterfeit goods and trademark infringement.

The case also highlights the effectiveness of international cooperation in detecting, sharing intelligence on, and handling cross-border intellectual property violations, he added.

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Authorities inspect the manufacturing company and work with its representatives. Photo: DMS.

Authorities have completed the inspection record, imposed preventive measures in accordance with regulations, and are expanding the investigation into the origin of the raw materials, import partners and export network.

The case is expected to be transferred to investigation authorities for further legal proceedings and to identify all parties involved in the suspected counterfeiting operation.

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