Recently, sectors and functional units across Da Nang have shown determination in the fight against counterfeit goods and trade fraud products in e-commerce channels, aiming to protect consumer rights and avoid tax revenue loss due to the development of modern distribution channels.

The city's market management force pays inspections to some business establishment in the locality. Photo: VAN HOANG

Many difficulties need to be resolved

In Da Nang, nearly 1,918 businesses are introducing nearly 2,696 products/services on the city's e-commerce platform at the website www.danangtrade.com.vn. Most of them are selling agricultural products, food, processed foods, beverages, medicinal herbs, and typical rural industrial and regionally specific products.

Other consumer goods such as clothes, footwear, handbags, cosmetics, etc., are mostly being sold through social networking platforms and other e-commerce platforms, causing many difficulties for management units to inspect and handle violations.

According to Mrs. Le Thi Thu Hang from the Policy Office of the E-commerce and Digital Economy Agency under the Ministry of Industry and Trade, the act of selling fake, counterfeit and poor quality goods, and violations in the online environment, are becoming more sophisticated.

The main reason comes from the fact that online stores are easy to create and delete, making it difficult for state management agencies to trace sellers or warehouses. Besides, a part of consumers still has the habit of prioritising buying cheap goods online.

Although the central government is making efforts to amend many tax regulations, tax collection laws have not kept up with the rapid development of this type of business.

With current regulations, it is very difficult to determine the tax basis or clearly distinguish income as a basis for most forms of taxation, as well as to distinguish some types of income, especially copyrights, service fees and business profits in the digital economy.

According to the report released by the Da Nang chapter of the National Steering Committee 389 on Anti-smuggling, Counterfeit Goods and Trade Fraud (Steering Committee 389), from 2020-2023, the unit has detected, arrested, and handled 46 cases of violations in e-commerce activities, including 3 cases of smuggling and illegal transportation of banned and contraband goods, 40 cases of commercial fraud and tax fraud, and 2 cases of intellectual property rights infringement.

The authorities have prosecuted 2 cases, handled 40 administrative violations and collected nearly VND1.1 billion to the budget.

Many anti-smuggling, trade fraud and counterfeit goods activities in e-commerce are inspected and supervised by relevant agencies and units.

​Multiple solutions deployed synchronously

Every year, the municipal Department of Industry and Trade carries out programmes to concretise the city’s e-commerce development plan for the 2021-2025 period; and the industry and trade sector’s task of anti-counterfeiting and consumer protection in e-commerce by 2025.

Heed is on implementing the project on anti-counterfeiting and consumer protection in e-commerce by 2025 in the city.

Till date, the department has organised two workshops and eight training classes on skills, applications and overview of e-commerce, as well as taken solutions to promote and develop product brands in the online and cross-border e-commerce environment.

In addition, the department has compiled and released 3,500 folded brochures guiding the registration process, notification of e-commerce websites/applications, and regulations on handling violations; and 6,000 folded brochures to propagate legislation on e-commerce and violations in online shopping to businesses and production facilities citywide.

According to the Steering Committee 389, to strictly manage e-commerce business activities, functional forces need to continue to review the system of legal documents related to licensing, inspection, testing and handling e-commerce violations.

Mr. Pham Ngoc Son, Director of the Market Management Department and Standing Deputy Head of the Steering Committee 389, said that in the coming time, the issue of violations and fraud in e-commerce is expected to become more complicated.

Therefore, he asked member units of Steering Committee 389 to strengthen inter-sectoral coordination between relevant agencies; and proactively grasp the methods and tricks of criminals, in a bid to prevent and promptly detect violations.

Focus should be on boosting the application of information technology in activities to fight and prevent crimes related to e-commerce fraud, Mr. Son noted.

Reporting by VIET AN - Translating by M.DUNG