In a shocking revelation, authorities have uncovered a massive food fraud operation in Vietnam, where tens of thousands of tons of vegetable oil intended for animal feed were disguised and sold as cooking oil for human consumption. The criminal network generated an estimated 8.2 trillion VND (around 322 million USD) in revenue over the past three years.

On the evening of June 24, VTV reported that police in Hung Yen Province, in coordination with various agencies, dismantled a sprawling fake cooking oil production and distribution ring linked to multiple companies across Vietnam.

The primary distribution targets included collective kitchens, restaurants, street food vendors, and even traditional villages producing snacks and confectionery for children.

A central focus of the investigation is Ofood, a food brand operated by Nhat Minh Food Co., Ltd. Ofood's cooking oil products have flooded the market annually in enormous quantities. However, authorities discovered that these products originated from vegetable oil meant for livestock feed.

To cover up their crimes, the perpetrators installed underground pipelines to pump oil from tanks designated for animal-grade materials into tanks labeled for human consumption. They falsely advertised the oil as enriched with vitamin A, yet lab tests revealed the nutrient was entirely absent.

Initial findings indicate that the group sold tens of thousands of tons of substandard vegetable oil to consumers.

To legitimize their operations, the masterminds established front companies allegedly producing edible oil. These shell firms served as conduits for transporting livestock oil to food production companies.

In addition to the oil already sold to the public, police have seized over 1,000 tons of illegally imported oil. Authorities have filed charges against three suspects for producing and trading counterfeit food products and food additives, as well as smuggling offenses.

Among the implicated businesses is An Hung Phuoc Trading and Import-Export Co., Ltd., one of Vietnam’s major vegetable oil importers.

The illicit operation is estimated to have earned over 8.2 trillion VND in the last three years, with one company reportedly operating for 14 years and achieving annual revenues of up to 4.5 trillion VND.

According to authorities, the group profited from price differences by selling human-grade cooking oil at prices roughly 17% higher than animal feed oil. They also evaded value-added tax: edible oil is subject to 8% VAT, while livestock oil is tax-exempt.

Tam An