On April 10, the Ministry of Public Security’s (MPS) Investigative Police Agency initiated legal action and arrested eight individuals linked to a fake milk production ring operated by Rance Pharma International Pharmaceutical JSC and Hacofood Nutrition Pharmaceutical JSC, both based in Hanoi. Authorities seized 84 types of milk powder products and over 26,000 milk boxes.

Preliminary investigations revealed that since August 2021, Vu Manh Cuong, 46, and Hoang Manh Ha, 46, realizing the high domestic demand for nutritional products, particularly milk powder, established these companies to make and distribute these counterfeit dairy products. 

The group of companies manufactured 573 different milk powder brands targeting consumers with diabetes, kidney issues, preterm or low-birth-weight infants, and pregnant women.

Initial testing confirmed that 12 milk powder products contained less than 70 percent of the declared nutritional content, and met the requirements to be qualified as counterfeit products. 

These included Colos IQ For Mum, Darifa A+ ProGold, and Gludiabet Talacmum, some of which were endorsed by prominent doctors, causing public alarm. 

Investigations are continuing with 72 other products. The Ministry of Health (MOH) has ordered the recall of the 12 confirmed fake products and advised against using the other 72 which are still under scrutiny.

Besides the two main companies, the group had nine other firms, reaping nearly VND500 billion in illicit profits over four years. Some hospitals reported that medical staff had recommended milk products from this ring to patients.

VND200 billion in illicit gains from fake medicine 

The fake milk production ring had not yet subsided, when Thanh Hoa Provincial Police on April 16 announced that they uncovered a large-scale fake pharmaceutical production and trading ring nationwide, arresting 14 related subjects.

Agencies urgently searched six locations in Hanoi, HCM City, Vinh Phuc, Hung Yen, An Giang, and Dong Thap, seizing 21 types of counterfeit drugs, including four Western and 17 Eastern medicines, with nearly 10 tons of fake drugs and raw materials.

The investigation found that since 2021, the group has exploited loopholes in pharmaceutical retail regulations to set up production facilities, collect unverified raw materials, mix, grind, encapsulate, and pack fake drugs. These products were distributed widely through pharmacies and social media, generating nearly VND200 billion in illegal profits. 

Tests have found that some kinds of Eastern medicines contained high levels of painkillers. As for counterfeit Western drugs, no toxic substances have been found, but there are no antibiotics as claimed on packaging, rendering them ineffective. 

On April 17, the Ministry of Health’s Drug Administration stated that it had not found any drugs manufactured by the ring at public hospitals.

In Thanh Hoa, some drug stores including Binh Minh (Hau Loc), Thang Hong (Thieu Hoa), Bao An (Thanh Hoa City), Duc Tin (Nam Ngan), and Thuan Huong (Nhu Thanh) were found selling these fakes. The products were also available on Facebook accounts including “Nga Hoang” and “Tran Thu.”

Hundreds of suspected health supplements exposed

After discovering the milk and drug rings, the MPS’s Investigative Police Agency on April 25 announced an investigation into a health supplement production ring targeting children, including newborns, led by Pham Vu Khiem, Director of Herbitech Technology Co., Ltd. 

Two products, BABY SHARK and Medi Kid Calcium K2, produced by the company in SocSon, Hanoi, were confirmed as fake. 

The company processed and produced more than 200 products worth hundreds of billions of dong but lacked quality control.

Advertised as imports from France, Germany, and the US, their quality and pricing did not match claims. Khiem admitted to falsifying test results to market the products. 

The Ministry of Health has advised against using these two products until final conclusions are released.

The next day, April 26, the MPS’s Anti-Corruption, Economic Crimes, and Smuggling Investigation Division took legal proceedings in another case of large-scale counterfeit product manufacturing and distribution, seizing over 100 tons of counterfeit health supplements. 

Five individuals, including three directors - Nguyen Nang Manh (Mega Phaco and MEDIUSA JSC Chair), Do Manh Hoang (MediPhar), and Khuc Minh Vu (Viet Duc Co) were detained. 

Since 2016, this group operated multiple companies to produce fake supplements labeled as European or American imports, using mostly unverified Chinese raw materials. 

Product quality was below 30 percent of declared standards, and the subjects destroyed evidence when hearing about investigations. Over 900 supplement brands were produced under the ring, targeting the elderly, pregnant women, and children, with one company alone generating over VND800 billion since 2021. 

Vo Thu