Twenty-five truckloads of fake material and defective shoe parts used to make counterfeit Nike and Adidas footwear have been seized by police in Ho Chi Minh City following a tip-off from Nike.

Last week's raid was the first large-scale action that Nike has undertaken with Vietnamese authorities, and spokesman Chris Helzer said: "We're really happy with their response and cooperation."

The haul was discovered at two illegal shoe workshops in the city, and included parts that should have been destroyed or sent for recycling by Nike and Adidas approved factories near the city.

The owner of the illegal workshops bought the shoe parts from scavengers who collected the parts dumped by the factories, police said. They were using them to maker around 40 pairs of shoes a day.

Helzer told Dow Jones International News that Nike is well aware that counterfeit versions of its products are being sold in Vietnam but this is the first time it has really been successful in tackling the problem.

The clampdown is likely to continue since a trade pact the country signed with the US last year requires protection of copyrights and intellectual property.