Since the beginning of the year, several high-profile TikTokers with massive followings and businesses generating substantial revenue have been prosecuted or detained for violating the law.

Most recently, Vu Nam Phuong (also known as Vu Hong Phuc, nicknamed "Cun Bong") was indicted for violations in her business operations involving large-scale sales of fruit and dietary supplements.

Phuong, a popular TikToker with more than 300,000 followers on Facebook, 500,000 on TikTok, and 72,000 on Instagram, leveraged her influence to promote and sell products via her VHP store and online platforms under the American Pharma Joint Stock Company.

Established in 2017, the American Pharma Joint Stock Company is legally represented by Nguyen Nam Thang (born 1995), Phuong’s husband. The company primarily trades in household goods, food, beverages, tobacco, and other general retail products.

According to authorities, from 2023 onward, Phuong, Thang, and accountant Chu Thi My Nhung falsely declared revenues to the tax agency. Despite generating more than 120 billion VND (over USD 4.7 million), they only declared around 5 billion VND (approximately USD 200,000), resulting in a tax loss exceeding 10 billion VND (over USD 390,000) to the state budget.

Phuong’s case exemplifies the growing issue of influential social media personalities engaging in commerce without adhering to tax laws and financial regulations.

On June 16, police in Ninh Binh province launched a criminal investigation into the sale of counterfeit food products by Hai Be Co., Ltd. Luu Van Hai and director Tran Dai Phuc were arrested.

Hai, the creator of the 2.6-million-follower TikTok channel "Hai Sen Family" and “Hai Sen Vlog” on Facebook, had earlier raised suspicions by removing all product listings from his TikTok storefront.

His TikTok channel marketed a range of products under his brand such as deodorant sprays, face washes, hair removal creams, exfoliants, and children's syrup-all registered under Hai Be Co., Ltd. The company's website has also been taken offline.

On April 3, the Ministry of Public Security initiated a criminal case involving the production of counterfeit food and customer deception tied to CER Group and Asia Life JSC, the producers of Kera vegetable gummies.

Notable TikTokers Hang Du Muc and Quang Linh Vlogs, along with Miss Grand International Nguyen Thuc Thuy Tien, had livestreamed extensively promoting the product.

The scandals and subsequent prosecutions have cast a shadow over once-lucrative livestream sessions with “hundred-billion” dong revenues. These events have triggered a shift in shopping behavior and public trust toward influencers and key opinion consumers (KOCs).

Recently, all cosmetics and dietary supplements vanished from the TikTok store of Doan Di Bang, which boasts 1.7 million followers. This came after three product lines distributed by VB Group (represented by her husband Nguyen Quoc Vu) and manufactured by EBC Medical Factory JSC in Dong Nai were found to be substandard.

On May 29, Dong Nai police launched a criminal investigation into the alleged production and sale of counterfeit goods involving EBC Medical Factory JSC.

Hanh Nguyen