Vietnam to launch national traceability system to fight counterfeit goods

While product traceability has been applied to several sectors across Vietnam, experts say current solutions remain fragmented and inconsistent.

The NDA Trace system aims to fix that by offering a unified, government-backed digital platform to verify and track the origin and journey of all goods sold in Vietnam.

Via NDA Trace, the Ministry of Public Security will issue an international-standard unique identifier (UID) for every product in Vietnam.

All relevant data from customs, taxation, health, commerce, and market surveillance agencies will be integrated into a centralized national infrastructure accessible via the public service portal.

The system combines NDA Chain, Vietnam's national blockchain platform, with decentralized identity technology (NDA DID) to create an immutable digital trail for each product, from manufacturing to retail.

Every transaction and actor in the supply chain will be recorded and authenticated, making it virtually impossible to forge or alter product histories.

NDA Trace will also link with e-commerce platforms to verify product identifiers before items can be listed for sale.

It will check for licensing status, safety alerts, and quality control records, and notify both the public and distributors of any violations.

All stakeholders in the supply chain such as manufacturers, inspection agencies, distributors, and end consumers can use an NDA Trace ID (in the form of a QR code or embedded chip) to instantly access traceability information without any account required.

According to developers, the system has already issued over 25,000 digital IDs for more than 400 product categories.

The platform is set to launch in the third quarter of this year, starting with integration across customs, tax, e-commerce, and market surveillance.

A trial phase will follow in the final quarter, with full nationwide implementation expected in early 2026.

Tran Huu Linh, director of the Agency for Market Surveillance and Development under the Ministry of Industry and Trade, said the system will go beyond simply fighting counterfeits.

It will help manage the entire product lifecycle. This will enable businesses to improve supply chain transparency and enhance consumer protection.

After a wave of recent scandals involving fake medicines and dietary supplements, many consumers are now more cautious.

Hong Uyen, residing in Ho Chi Minh City, said she avoids online purchases and only shops at trusted stores.

“With NDA Trace, we’ll be able to scan a product and see its entire verified history. That would reduce risks for buyers,” she said.

Hoang Tuan Anh, chief information officer at ECO Pharma JSC, said his company has adopted anti-counterfeit tech combining QR codes, scratch labels, and holograms for its drug packaging.

While each box is traceable to its point of sale, Anh admitted the current solution lacks full-chain integration and does not support end-user verification.

He called for an accelerated rollout of NDA Trace.

Currently, many firms still use insecure methods such as 3D-printed or tamper-evident labels without traceable data.

QR codes and barcodes also often lack independent verification.

Nguyen Hong Nghi, director of the enterprise digital solutions division at VNPT Information Technology Company, under Vietnam Posts and Telecommunications Group, said that although the initial setup of NDA Trace may feel burdensome for manufacturers out of added procedures, compliant businesses will gain consumer trust and the ability to share feedback with regulators.

Nguyen Huy, head of technology at the National Data Association, emphasized that past traceability efforts have been disjointed and lacked standardization.

“We need a national framework which is top-down, integrated with both domestic standards and international protocols, and backed by government agencies,” Huy said.

At a recent workshop on product verification and digital economy, Colonel Pham Minh Tien of the Ministry of Public Security’s National Data Center warned that counterfeit goods are making their way not only into markets and e-commerce platforms but also supermarkets and hospitals.

“Verifiability and traceability are not just regulatory requirements. They are key to building domestic trust and ensuring international integration,” Tien added.

In 2024, Vietnam handled more than 47,000 cases involving counterfeit or fraudulent goods, with a rising trend across e-commerce platforms and social media, according to the National Numbering and Barcodes Center.

Fake items have increasingly infiltrated daily life, especially in food, pharmaceuticals, and household products.