The United States, however, has continued to tighten the screws.

In late May, it launched an investigation to determine whether Vietnam’s failure to eradicate intellectual property violations was “unreasonable” and problematic for U.S. trade.

So the Vietnamese authorities tightened their own screws.

On June 10, police in Thanh Hoa province dismantled a network that manufactured and sold more than 10,000 counterfeit jewelry items. The counterfeits imitated brands such as Bvlgari, Cartier, Louis Vuitton and Tiffany & Co, and generated approximately $1.14 million in illicit profits for the counterfeiting syndicate.

Market stalls in Ho Chi Minh City and Hanoi have been closed, while police have raided warehouses, clothing and sneaker stores.

Locals, however, are divided by the repression. And while it appears to be forcing some suppliers out of business, others are hoping for a blessing.

Thi Nguyen designs, makes and sells her own clothing in various stores in Ho Chi Minh City and Da Lat. In her view, the counterfeiting industry not only violates the intellectual property rights of designers like her, but also “makes Vietnam’s retail market chaotic and turns it into a kind of joke.”

She says customers are willing to spend $75 on a fake designer dress that looks authentic, but complain when they’re charged half as much for a custom piece, “even when it’s made with quality fabric and good tailoring.”

“There is no shortage of highly skilled tailors and hand embroiderers in Vietnam, but many of them are ignored and do not receive the income they deserve,” he says. “Many end up working in factories that produce counterfeit products.”

Now that counterfeit sellers are forced to close, she is preparing to invest more in her business and raise prices.

“I feel safer operating in a cleaner, more transparent and fairer business environment,” she says. “It’s not really about winners and losers. It’s about restoring justice and returning good and evil, genuine and false, to their proper place.”