Vietnam police dismantle major counterfeit milk powder operation targeting vulnerable consumers

The Vietnamese Ministry of Public Security has dismantled a large-scale counterfeit milk powder operation that manufactured and distributed 573 fake products targeting diabetics, people with kidney failure, premature infants, and pregnant women.

Police have prosecuted and detained Vu Manh Cuong, Hoang Manh Ha, and six others for investigation on charges of producing and trading counterfeit food products and violating accounting regulations causing serious consequences.

Police investigations revealed that since August 2021, Cuong and Ha had identified the growing domestic demand for nutritional products, dietary supplements, and powdered nutritional products.

Cuong and Ha masterminded the establishment of Rance Pharma Company in Him Lam Residential Area in Hanoi, and Hacofood Group in Phu Luong New Urban Area, also in Hanoi, to directly produce, trade, and distribute counterfeit milk powder.

Ha and Cuong were directly involved in forming partnerships, raising capital, and recruiting founding shareholders to establish a business ecosystem. They were also the primary shareholders in both Hacofood and Rance Pharma.

The two men oversaw the entire operation from production, trading to distribution.

Ha, acting as the legal representative, signed key documents, such as financial statements and business performance reports, for Rance Pharma.

Product labels claimed to contain bird’s nest, ophiocordyceps sinensis, macadamia powder, and walnut powder.

However, investigations revealed these ingredients were entirely absent. Instead, suspects used various substitute ingredients and additives.

In addition to Hacofood and Rance Pharma, the suspects partnered with others to establish nine more companies to register and market different product lines and directly distribute the fake milk powder churned out at Hacofood and Rance Pharma facilities.

Over the past four years, the group distributed various types of counterfeit milk powder to the market, generating nearly VND500 billion (US$20 million) in revenue.

Investigations also revealed that the entire financial and accounting operations of Rance Pharma and Hacofood showed numerous violations of accounting regulations leading to serious consequences.

The case is currently under further investigation.

Thanh Ha - Danh Trong / Tuoi Tre News

(2025/04/14-17:19)