Vietnam prosecutes TikTok influencers for fraud and tax evasion
Vietnamese authorities in August 2026 prosecuted multiple TikTok influencers for fraud, tax evasion, and selling counterfeit goods through the platform's live-streaming commerce features. Regulators found TikTok's algorithm amplified toxic content and identified gaps in e-commerce oversight and consumer protection that facilitated criminal activity.
What happened
In August 2026, Vietnam authorities prosecuted and arrested multiple TikTok influencers with millions of followers for fraud and tax evasion. Influencers including Phú Lê, Hai Sapa, Nguyen Thi Huong, Lê Thị Thanh Hằng, and Huấn Hoa Hồng were targeted for using TikTok to sell counterfeit products, evade taxes, and commit fraud through live-streaming commerce.
The influencers used TikTok's features such as video reply and live streaming to build followings by posting violent and wealth-flaunting content, then monetised their influence by selling unregulated products including cosmetics, perfumes, health products, and food through TikTok Shop. They concealed income through complex corporate networks.
Reported impact
Vietnam's e-commerce market suffered from widespread fraud due to gaps in regulations and enforcement. TikTok's algorithm amplified toxic content and challenged promoting criminal activity, while the platform took a 70% commission on live-streaming gifts without preventing counterfeit goods from circulating on TikTok Shop.
Index analysis
Vietnam's Ministry of Information and Communications investigated TikTok in 2023, finding algorithmic amplification of toxic content and viral challenges encouraged illegal activity. The platform's live-streaming monetisation mechanism and lack of consumer protections for vulnerable users including children and elderly people created conditions for fraud.
Vietnam's National Competition Commission fined TikTok 8.8 billion Vietnamese dong for violations of consumer protection law, including failing to provide users with a mechanism to refuse personal data use in advertising, including unfair contract terms, and failing to establish complaint procedures for vulnerable consumers.
Governance controls
Vietnam's Public Security Cybersecurity Bureau launched enforcement actions in 2024 targeting illegal profit and tax evasion through TikTok's algorithm. In early 2026, Vietnam's police required TikTok to support an official anti-fraud campaign. TikTok's Vietnam leadership stated the company began adjusting practices based on regulator recommendations.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.