Directors jailed in Vietnam’s $20M counterfeit milk scandal
 

The Ministry of Public Security has detained several top executives for producing fake powdered milk under 573 different labels, targeting at-risk groups like diabetics and infants.

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Workers packaging finished powdered milk products at the production facility, preparing them for market distribution. Photo: People's Public Security Newspaper

The Ministry of Public Security has officially disclosed details of a major investigation into a large-scale fake powdered milk production ring, which operated across Hanoi and several other provinces.

The case has caused over VND 28 billion (approximately USD 1.1 million) in losses to the state budget and defrauded consumers of nearly VND 500 billion (around USD 20 million).

Eight suspects indicted

On April 10, police charged and detained eight individuals for "producing and trading counterfeit food" and "violating accounting regulations causing serious consequences." Among them:

Hoang Manh Ha (b. 1979), investor and former legal representative of Rance Pharma (Aug 2021 - Aug 2024), also an investor in Hacofood.

Vu Manh Cuong (b. 1979), investor and former legal representative of Hacofood (Apr 2022 - Oct 2024), also an investor in Rance Pharma.

Dang Trung Kien (b. 1988), investor and deputy director at both firms.

These three face both criminal charges.

Ho Sy Y (b. 1988), factory manager, was charged with food counterfeiting.

Nguyen Thanh Luan (b. 1987) and Nguyen Van Tu (b. 1981), former legal representatives of Rance Pharma and Hacofood respectively, and Nguyen Thu Thuy (b. 1970), chief accountant, were charged with accounting violations.
Nguyen Thi Mai Huong, accountant and treasurer, was charged and banned from leaving her residence.

All decisions were approved by the Supreme People’s Procuracy and executed on April 11.

26,740 cans seized, $1.1M in tax evasion

Searches across 19 locations including factories and offices yielded 84 different fake powdered milk products totaling 26,740 cans from 90 production batches. Authorities also collected key evidence and documents.

Initial findings show that since 2021, the companies failed to declare full revenues and evaded taxes, causing a loss of more than VND 28 billion to the state budget.

From 2021 onward, the accused exploited rising demand for nutritional products and launched two firms - Rance Pharma and Hacofood Group - to manufacture and sell counterfeit powdered milk.

Investigators confirmed the group produced 573 fake milk powder brands, falsely marketed with ingredients such as bird’s nest extract, cordyceps, macadamia, and walnut powder. However, these were substituted with cheaper ingredients and additives.

Lab tests revealed the nutritional quality of many products was below 70% of the stated value - qualifying them as counterfeit under Vietnamese law.

In four years, the group distributed fake products nationwide through multiple companies, reaping profits of nearly VND 500 billion.
VietBF@ Sưu tập