Building data platforms for product traceability

Data behind QR codes

Over more than six decades of development, Lam Thao Fertilizers and Chemicals Joint Stock Company has become one of the country’s largest fertiliser brands. Every year, millions of tonnes of products are supplied to the market to serve agricultural production. Operating at such a large scale means the company frequently encounters counterfeit and imitation goods.

According to Nguyen Quoc An, Deputy General Director of the company, various measures such as changing packaging, adjusting brand-identification colours, and adding distinguishing features to genuine products have failed to provide a long-term solution.

Since 2021, the company has deployed a smart-label system incorporating QR codes on its products. Consumers can use their phones to verify authenticity, check product origins, access usage instructions, and obtain information about customer-care programmes.

An said that behind every QR code lies an entire digitised data system. By scanning the code, anyone can trace the production date, production shift, manufacturing line, batch number, and distribution history of the product.

QR codes were once regarded as a “shield” against counterfeiting. However, when even traceability codes can be copied, the question is no longer which label is attached to a product, but rather what data lies behind it.

According to Tran Huu Linh, Director General of the Agency for Domestic Market Surveillance and Development under the Ministry of Industry and Trade, one of the most common misconceptions today is the assumption that traceability simply means attaching a QR code to a product.

“Traceability is not merely about placing a QR code on goods. Behind that code must be a comprehensive data system covering everything from raw materials, production processes, transportation, and distribution to the final consumer,” he stressed.

Counterfeit goods have now entered a new phase; in many cases, counterfeiters even copy companies’ traceability codes. This has created a need for more intelligent authentication systems capable of detecting anomalies in code-scanning activities and product circulation.

“The Government and ministries are developing shared traceability platforms to help businesses connect data instead of having to invest individually in complete systems,” Linh said.

One of the tools expected to play a key role is the national traceability platform verigoods.vn, operated by the Ministry of Industry and Trade since late 2025. To date, more than 1 million product codes have been authenticated through the system.

Digital data transforms market management

According to market surveillance authorities, traceability technology has made product inspections significantly faster and more accurate than previous manual methods.

More importantly, digital data is transforming the way markets are managed. When each product is assigned a unique identifier, regulators and businesses can track its journey almost in real time, identifying anomalies such as products appearing outside authorised distribution areas, inconsistencies in circulation volumes, or risks of counterfeit and imitation goods.

As a result, traceability data not only supports inspection activities but also enables consumers to verify product origins before making purchases.

While traceability was once driven primarily by domestic market-management needs, it is now increasingly influenced by stricter requirements from export markets.

Dr Ha Minh Hiep, Chief of Office of the Ministry of Science and Technology, said that the revised Law on Product and Goods Quality, which takes effect on July 1, aims to meet the requirements of international integration and national digital transformation.

A notable feature of the new law is its shift from an administrative-management approach to risk-based governance grounded in science, technology, and data. Instead of classifying products according to administrative categories, goods will be divided into three risk levels: low, medium, and high.

“The State will concentrate management resources on product groups that pose significant risks to human health, livestock, crops, and the environment,” Hiep said.

Another new feature is the legal institutionalisation of the National Quality Infrastructure (NQI), which integrates standards, metrology, conformity assessment, accreditation, and quality inspection activities through digital data platforms.

At the same time, a national product-quality surveillance system will be established to detect and address risks at an early stage. The new law also encourages the application of artificial intelligence, big data, electronic labels, digital product passports, and traceability technologies in quality management.

According to Hiep, this will provide the foundation for a transition from paper-based management to data-driven governance, in line with global trends.

Vietnamese enterprises can no longer rely solely on competitive pricing or traditional brand recognition. To expand their market reach, they must demonstrate strong governance capabilities and a commitment to information transparency.

Phan Van Tam, Deputy General Director of Binh Dien Fertiliser Joint Stock Company, said the company is testing Radio Frequency Identification (RFID) technology — which enables the automatic identification, tracking, and storage of information through short-range radio waves — in combination with blockchain technology to automate data collection and updating processes.

With annual output reaching millions of fertiliser bags, manual management is no longer feasible. The new system automatically updates data whenever products are inspected at dealerships or consumption locations, enabling the company to detect irregularities early and respond promptly.

However, experts emphasise that technology alone is not the decisive factor.

According to Tran Huu Linh, technology is merely a tool; data is the true foundation. No matter how advanced a traceability system may be, it cannot function effectively if input data is incomplete. When data is standardised, interconnected, and verifiable, it becomes a powerful management instrument.

Nguyen Quoc An believes that this process is ultimately about building trust in the marketplace.

“When every product has a clear digital identity, every business takes responsibility for the data it provides, and every consumer actively verifies information before making a purchase, counterfeit and imitation goods will gradually lose their place in the market,” An said.

In the context of digital transformation and deeper international integration, transparency is becoming a new benchmark of competitiveness. Traceability is therefore no longer merely a compliance cost but an investment in prestige, market access, and sustainable business development.

More broadly, it serves as a “digital shield” protecting consumers, safeguarding Vietnamese brands, and contributing to the development of a healthy and transparent business environment in the digital economy.

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