The Ministry of Public Security in Vietnam has recently dismantled a large-scale operation involved in the production and sale of counterfeit milk powder, which has raised significant concerns among consumers. The operation, based in Hanoi and its neighboring provinces, has been linked to the production of nearly 600 different brands of fake milk powder, prompting authorities to take swift action.
According to reports, the operation was spearheaded by Vu Manh Cuong and Hoang Manh Ha, who established a network of nine companies designed to facilitate the production and distribution of these counterfeit products. The investigation revealed that from August 2021 to the present, the companies, namely Rance Pharma and Hacofood Group, have manufactured and traded 573 brands of milk powder, generating profits close to 500 billion VND (approximately 21 million USD).
Authorities have charged eight individuals with serious offenses, including "producing and trading in fake food" and "violating accounting regulations, causing serious consequences." This crackdown underscores the severity of the situation and the potential risks posed to consumers, particularly vulnerable populations such as children and pregnant women.
The network of companies involved in this operation includes Duoc Quoc te Group, Big Four Pharma, Long Khang Group, Dinh duong y hoc BFF, Safaco Group, Darifa Group, Win CT, Duoc pham dinh duong Phuc An Khang, and Duoc A Chau. Each of these companies played a role in registering product profiles and distributing goods produced at the factories owned by Rance Pharma and Hacofood Group.
In an alarming revelation, the authorities found that the quality of some of the milk powder produced by these companies fell below 70% of the declared standards. This significant discrepancy qualifies the products as counterfeit, raising serious health concerns. The investigation has also highlighted the sophisticated methods employed by the masterminds to evade detection and continue their operations.
Vu Manh Cuong and Hoang Manh Ha are reported to be the primary shareholders in both Hacofood Group and Rance Pharma. They orchestrated the establishment of the nine companies and opened a factory in Phu Nghia Industrial Park, located in Chuong My, Hanoi, specifically for the production of fake milk powder. Their strategy involved creating a complex ecosystem of businesses that could effectively mask the true nature of their operations.
Interestingly, from late 2024 onwards, both Cuong and Ha began transferring their official roles to other individuals while maintaining control over the operations. For instance, in August 2024, Hoang Manh Ha transferred the directorship of Rance Pharma to Nguyen Thanh Luan, while Cuong handed over the position at Hacofood Group to Nguyen Van Tu in October 2024. Despite these changes, both Luan and Tu were reportedly only nominal figures, with their actual roles limited to business operations.
The investigation has also revealed that the companies involved had previously advertised their products as containing high-quality ingredients such as colostrum, DHA, vitamins, and minerals, which were purportedly imported from New Zealand. However, tests have shown that these products do not contain the advertised ingredients, further emphasizing the fraudulent nature of the operation.
Consumers across Vietnam have expressed their outrage and concern over the widespread distribution of these counterfeit products, which were marketed as suitable for various demographics, including children, pregnant women, and individuals with specific health conditions such as diabetes and kidney failure. Notably, the Cilonmum brand, produced by Duoc Quoc te Group, included products aimed at infants and mothers, while Talacmum, from Hacofood Group, was marketed for weight gain support and nutritional needs.
The Ministry of Public Security has taken significant steps to ensure that the websites and social media pages of these companies are no longer accessible, effectively cutting off their online presence. Furthermore, many products have been removed from e-commerce platforms, reflecting the seriousness of the situation.
In light of these developments, authorities are urging consumers to exercise caution and thoroughly check product labels before purchasing any milk powder. They recommend avoiding products manufactured and distributed by the implicated companies to safeguard health.
The crackdown on this counterfeit milk powder operation serves as a stark reminder of the importance of regulatory oversight in the food industry, particularly in ensuring the safety and well-being of consumers. As investigations continue, the Ministry of Public Security is expected to uncover further details about the extent of the operation and the individuals involved.
As the investigation unfolds, it remains crucial for consumers to stay informed and vigilant regarding the products they choose to purchase, especially those intended for vulnerable populations such as infants and pregnant women. The commitment of authorities to combat counterfeit goods is a positive step toward restoring consumer confidence in the market.
