Shoppers slip through shuttered doors as raids target counterfeit goods in Hanoi, HCMC

She is surprised to find Hang Ngang and Hang Dao streets in Hanoi’s Hoan Kiem District nearly deserted on the morning of June 6.

Usually a bustling commercial hub, the area was now like Hanoi during the Lunar New Year holidays, quiet and with most stores closed.

Unable to find an open store after riding up and down the street twice, she parks her motorbike and continues on foot.

The 35-year-old peers through shutters and door cracks, hoping to find one still operating. "I am used to buying clothes here, and so I am trying to find one still open," she says.

Eventually, she spots a shop with its roller door nearly shut. As she enters the owner quickly pulls it almost closed behind her and explains that she has operated this way for now to avoid raids to prevent fakes.

Like Lan's, maany shops selling fashion goods, watches and medicines in markets in HCMC and Hanoi have shut down as authorities ramp up raids to root out counterfeits and tax crackdown.

Market authorities had carried out several raids at the end of May. Inspectors have found in HCMC thousands of products carrying names of luxury brands such as Rolex, Channel and Gucci without sellers being able to furnish documents for their authenticity.

Their prices were much lower than those of genuine products. Once she leaves, the shutter is lowered again, giving the impression the store is shut.

For Lan, finding clothes was difficult but finding shoes was even harder since nearly every shoe store was shut.

Following a tip, she contacts a store via the Zalo messaging app to browse styles and order as "in-person sales are suspended during this time." After nearly two hours she has not found everything she needed.

Kieu Tuyet, 45, of Hai Ba Trung District also struggled to buy some sleepwear on Hang Dao. After walking around for 30 minutes she finds a familiar shop.

The entire purchase takes less than 10 minutes, with the shop encouraging her to pay in cash instead of via bank transfer.

She says over the past week shoppers have only had two ways to buy: regular customers slip through barely open doors or others place phone orders for pickup or delivery. "Shopping like this feels like doing something illegal."

A VnExpress survey on June 6 found that around 80% of clothing, footwear and cosmetics stores on streets like Hang Ngang, Hang Dao, Hang Bong, Hang Giay and at Dong Xuan and Hang Da markets were shut.

Hang Dao and Hang Ngang streets in Hanoi’s Hoan Kiem District appeared nearly deserted, with about 80% of the shops shuttered, around noon on June 6, 2025. Photo by VnExpress/ Nga Thanh

Other major shopping areas such as Chua Boc Street in Dong Da District and Ninh Hiep Market in Gia Lam District also reported widespread closures.

At the few shops still open, the doors were partly closed or there were staff waiting outside to hand goods to delivery drivers.

Similar scenes were reported at wholesale and local markets in other provinces.

On social media, shoppers shared photos of people knocking or squeezing through narrow openings just to get inside.

Nguyen Thi Oanh, 60, a clothing vendor on Hang Dao Street, says most shops are closed since June 1 for fear of raids to unearth counterfeit goods and tax inspections.

"There have been days I have not sold more than three or four outfits. But that is better than being fined. I do not have money to pay."

She says new tax rules requiring businesses with high revenues to issue e-invoices connected to tax authorities has made her cautious.

She now insists on cash payments, even refusing card transactions from foreign customers and directing them to exchange cash.

"I do not understand how the new tax system works, so I try to avoid banking payments altogether," she says.

Tuyet Hoa, 74, who has run a sidewalk tea stall on Hang Ngang Street for nearly a decade, says the current scenes remind her of the Covid lockdowns.

While stores appear closed, sales continue quietly inside, she points out. "Some shops near my home are still operating behind closed doors, only opening briefly to hand items to delivery drivers."

But with the bustling streets quietening down, her own business has suffered. Once a popular stop for delivery riders, her stall now struggles to sell even 10 cups of tea a day.

She believes trading will only return to normal after June 15, when the government’s crackdown on smuggling and counterfeit goods is expected to end.

Under new tax rules effective June 1, small businesses with annual revenues over VND1 billion (US$38,380) must issue e-invoices using digital cash registers linked to tax authorities.

Vendors are required to issue receipts for every transaction, allowing authorities to monitor actual revenues. This replaces the old fixed-rate tax model, with earnings now reassessed based on real-time data.

Nguyen Ngoc Tinh, vice president of the Ho Chi Minh City Tax Consultant and Agent Association and deputy director of accounting firm DFK Vietnam, says the policy shift has made many business owners anxious.

They must now invest in new hardware and software though many also lack the skills to manage the required accounting and reporting. These could impact their profits, he adds.

Pham Ngoc Trung, former head of the Department of Culture and Development at the Academy of Journalism and Communication, says a sweeping crackdown on counterfeit and unverified goods has further added to businesses’ fears.

Many worry their stock could violate labeling or trademark regulations, prompting them to close temporarily to avoid penalties or confiscation.

He says vendors have responded in two ways: some have suspended business entirely, while others continue cautiously, operating behind closed doors or only fulfilling advance orders.

The latter group hopes to maintain enough income to cover fixed costs like rent, utilities and wages, he says.