Massive fake luxury goods ring shut down in Vietnam

A French customs officer shows seized counterfeit handbags prior their destruction on May 29, 2012 at the postal sorting center of Chilly Mazarin, near Paris. French luxury brands from Chanel to Vuitton on May 30, 2012 launch a campaign with several European countries to fight back against the increasingly lucrative and damaging flood of counterfeit goods. The Comite Colbert, grouping 75 French luxury goods makers including Dior, Cartier and Remy Martin, is launching a poster campaign in French airports ahead of the summer to dissuade travellers from buying fakes. As home to many of the world's best known luxury brands, France is particularly exposed. Fake goods cost the economy 30,000 jobs and six billion euros in lost revenues every year, according to the Comite Colbert. Clothes, sunglasses, perfume, cosmetics, leather goods, half the 8.9 million counterfeit articles seized in France in 2011 were luxury goods, with Louis Vuitton products the most copied. AFP PHOTO ERIC PIERMONT (Photo credit should read ERIC PIERMONT/AFP/GettyImages)

Government authorities have raided a warehouse storing thousands of fake luxury goods in Lao Cai City, northern Vietnam, which were being sold online.

The 10,000sqm warehouse was divided into several areas including rooms for selling fake luxury goods via live-streaming on Facebook. Most of the items are copies of major brands including Gucci, Chanel, Nike and Adidas.

One of the employees from the warehouse admitted that there were more than 40 people processing orders during the live-streaming and some 1000 packages being shipped each day.

Although the exact number of fake goods smuggled from China has yet to be confirmed, authorities discovered the ring sold more than 90,000 products each month at a profit of around US$432,000.

An official said the ring was professionally organised and took advantage of online platforms for both wholesale and retail as online shopping has become increasingly popular in Vietnam.