The Environmental Crime Police Department (C05) of the Ministry of Public Security recently exposed a large-scale and serious case involving the production and sale of counterfeit nutritional products, specifically the HIUP 27 milk supplement.

Investigators found that Hoang Quang Thinh, Nguyen Van Minh, and La Khac Minh established and ran dozens of companies and hundreds of business entities within the Z Holding ecosystem, employing approximately 5,000 people.

Their operations involved mass-producing and distributing counterfeit health supplements, particularly the products “HIUP Nutritional Supplement” and “Chitose Special Diet Food,” on a national scale.

HIUP 27 was manufactured at Nature Made Trading and Production Joint Stock Company between August 8, 2024, and March 5, 2025. Investigations confirmed the product did not meet its declared nutritional composition and violated serious product quality regulations.

Inflated claims and price markup nearly 7 times

According to C05, the perpetrators bypassed testing regulations, hiring third-party lab certificates and even setting up in-house testing labs to falsely enhance product benefits. Ingredients like DHA were added to lure parents seeking brain and height development for their children.

Despite the label boasting 37 nutrients, HIUP 27 contained only 15–17 basic substances, offering far less than advertised. The exaggerated claims duped parents into paying premium prices, believing the milk offered superior medical-grade nutrition.

More shockingly, each can of HIUP 27 was produced for just 87,800 VND ($3.50 USD) but sold for an average of 546,000 VND ($22.30 USD) - nearly seven times the cost.

Sold primarily through multi-level marketing and social media promotions, the product was branded with medical-sounding terms like “European-standard medical nutrition” and “formulated for picky eaters and slow-growing children,” preying on parental fears.

$263 million in revenue, $16 million in tax evasion

Though technically a small private firm, HIUP 27’s manufacturer leveraged aggressive marketing and a widespread distribution network to dominate the market. In a short span, the company generated more than 6.7 trillion VND ($263 million USD) in revenue.

From 2023 to April 2025, Hoang Quang Thinh, Chairman and CEO of Z Holding, directed subordinates to maintain two sets of accounting books to conceal revenue and reduce tax obligations. Initial investigations estimate a tax loss of over 410 billion VND ($16 million USD) to the state.

Given the gravity of the offenses - including fraud, tax evasion, and producing counterfeit goods targeting children - many are calling for strict criminal charges and exemplary punishment.

Consumers have reacted with fury. Nguyen Phuong Thao, a mother in Hanoi, shared: “I bought HIUP 27 for my child at the end of 2023 based on celebrity endorsements. I still have seven unused cans, but the seller no longer responds. I hope authorities thoroughly investigate and harshly penalize these unethical individuals.”

Another parent, Le Thu, added tearfully: “My child was also a victim. I urge the authorities to step in, punish this fake milk producer, and protect our children’s health and consumer rights.”

The investigation is ongoing. The Ministry of Public Security urges anyone who has used HIUP 27 in 420g, 650g, or 800g cans, or its liquid variants produced between August 8, 2024, and March 5, 2025, to contact Investigator Tran Van Quan at 0983.084.243 or visit the Criminal Investigation Department at 47 Pham Van Dong, Mai Dich Ward, Cau Giay District, Hanoi, to provide information.

Y Nhuy