In a significant crackdown on the production of counterfeit milk products, Vietnam's Ministry of Public Security has dismantled a major operation involving Rance Pharma International Joint Stock Company and Hacofood Group Pharmaceutical Nutrition Joint Stock Company. This operation reportedly generated nearly 500 billion VND in revenue from the sale of nearly 600 types of fake milk powder.
Trần Hữu Linh, the head of the Domestic Market Management Department under the Ministry of Industry and Trade, clarified the regulatory responsibilities regarding these products. He stated that the Ministry of Industry and Trade does not have the authority to license or manage the operations of these companies, as their products fall outside its jurisdiction.
According to Decree No. 15/2018, the Ministry of Industry and Trade is responsible for overseeing regular processed milk products. However, it does not include products enhanced with micronutrients, functional foods, or pharmaceuticals, which are instead managed by the Ministry of Health. Linh emphasized, "The Ministry of Industry and Trade has no authority to issue business registration certificates to companies; this is done by the Departments of Planning and Investment at the provincial and municipal levels. Therefore, we do not directly manage the products manufactured and sold by Rance Pharma and Hacofood Group.”
This situation raises questions about the effectiveness of market oversight. Linh acknowledged the challenges faced by regulatory bodies in detecting violations, particularly when companies operate with proper documentation. He noted that these businesses often sell their products through unconventional channels, such as direct marketing and social media, rather than through regulated supermarkets or official distributors. This makes it difficult for authorities to monitor their activities.
In the wake of the crackdown, the Ministry of Industry and Trade reported that from 2021 to 2024, it had inspected and handled 783 violations related to milk products, imposing fines totaling 2.2 billion VND. In 2024 alone, the Hanoi Market Management Department referred two cases to the investigative police, including the discovery of 3,000 cans of unlabeled milk powder with unclear origins and substandard quality.
Another inspection revealed that the NCT3 Food High-Tech Food Production Joint Stock Company had over 123,600 packages of milk products with altered expiration dates and quality indicators below 70% of the declared standards.
As the Ministry of Industry and Trade moves forward, Linh stated that they will enhance monitoring of milk product distribution, especially in small retail outlets, unofficial agents, e-commerce platforms, and social media, where the risk of counterfeit products is high. He highlighted the need for inter-agency cooperation with health and agricultural sectors to ensure product safety and quality.
Furthermore, Linh pointed out that the use of celebrities and influencers to market these products complicates oversight efforts. These tactics allow companies to circumvent traditional distribution channels, making it harder for regulators to detect fraudulent activities.
In addressing the public's concerns regarding the management of milk products, Linh reassured that the Ministry is committed to tightening controls and improving the effectiveness of market supervision. They are currently reviewing the management of milk product circulation to identify and close loopholes in the system.
As the investigation continues, it is crucial for consumers to remain vigilant and report any suspicious products to the authorities. The Ministry of Industry and Trade is urging the public to be proactive in ensuring the safety and quality of milk products available in the market.
This incident serves as a stark reminder of the ongoing challenges in regulating food safety and the importance of robust oversight mechanisms to protect consumers from counterfeit goods. The Ministry’s efforts to strengthen regulations and enhance cooperation with relevant agencies will be critical in preventing similar cases in the future.
