In a significant crackdown on counterfeit goods, the Investigation Agency of the Ministry of Public Security in Vietnam has initiated legal proceedings against multiple individuals and companies involved in the production and distribution of fake powdered milk and health protection foods. This operation highlights a growing concern over food safety and regulatory compliance in the country.
On April 10, 2025, authorities revealed that four individuals—Hoang Manh Ha, Vu Manh Cuong, Dang Trung Kien, and Ho Sy Y—were prosecuted and detained for producing and trading counterfeit goods, specifically fake powdered milk. This action came after a thorough investigation that uncovered serious violations in food safety regulations.
According to the Ministry of Public Security, a total of 90 batches of powdered milk products, corresponding to 84 distinct types, were seized. The investigation found that 12 of these batches had quality indicators that fell below 70% of the declared level, thus violating regulatory standards. Currently, 78 additional batches, representing 72 types, are under further investigation for signs of producing and trading counterfeit food.
From 2021 to the present, the accused had established two separate accounting systems to conceal actual revenue, leading to significant financial losses for the state. Specifically, Rance Pharma Company was found to owe 24,360,687,968 VND in value-added tax (VAT), while Hacofood Company faced a tax liability of 4,495,328,243 VND. This manipulation of financial records not only defrauded the government but also posed a serious risk to public health.
As the investigation progressed, it was revealed that some individuals were involved in bribery and fraud. Following a police inspection on December 27, 2024, Hoang Manh Ha and Vu Manh Cuong allegedly sought to evade severe penalties by attempting to bribe officials. Cuong reportedly prepared 150,000 USD to be given to Pham Gia Khai, who was supposed to pass it on to Nguyen Van Quan to influence the case. Quan, however, misappropriated the funds for personal use, further complicating the situation.
On April 28, 2025, the Investigation Agency officially charged Nguyen Van Quan with fraud, while Hoang Manh Ha and Vu Manh Cuong were charged with bribery. Pham Gia Khai was also charged for brokering bribery, all under the Vietnamese Penal Code.
In a related case, the Ministry of Public Security also targeted the Herbitech Company, located in Thanh Xuan district, Hanoi, which is directed by Pham Vu Khiem. The company specializes in producing health protection foods but has come under scrutiny for using fake test result sheets from TSL Company to market its products.
On April 7 and April 18, 2025, investigators conducted searches at Herbitech's headquarters and factory, seizing documents and product samples for assessment. Initial results from the Institute of Criminal Science confirmed that two products, MEDI KID CALCIUM K2 and An ngon BABY SHARK, were counterfeit. The investigation is ongoing, with 115 additional samples of health protection products under scrutiny for potential fraud.
Pham Vu Khiem allegedly directed his accounting staff to create two accounting systems: one for tax declarations that understated production volumes and another for internal tracking that excluded 121,089,016,223 VND from official records. This manipulation is expected to have caused a loss of 10,204,067,875 VND in VAT to the state budget.
The Ministry of Public Security's actions reflect a broader effort to combat the production and distribution of counterfeit goods in Vietnam, which poses significant risks to consumer safety and public health. Authorities are emphasizing the need for strict regulatory compliance and transparency in the food production industry.
As these investigations unfold, they serve as a stark reminder of the importance of accountability and integrity in business practices. The legal repercussions faced by those involved in these fraudulent activities could lead to stricter regulations and enforcement in the food safety sector.
In light of these developments, consumers are urged to remain vigilant and informed about the products they purchase, ensuring they are sourced from reputable manufacturers. The government’s commitment to addressing these issues is crucial for restoring public trust and ensuring the safety of food products available in the market.
As the Ministry of Public Security continues its investigations, further details are expected to emerge, shedding light on the extent of the counterfeit operations and the individuals involved. This situation underscores the critical need for robust oversight and accountability in the food industry to protect consumers and uphold public health standards.