Report Vietnam's Fake Milk Powder Ring Uncovered, Major Bribery Scandal Unfolds

[snoop1130]

File photo for reference only

 

Vietnam's Ministry of Public Security has initiated legal action against key figures of a fraudulent milk powder production ring following an extensive investigation into bribery and counterfeit goods. Chief among those charged are Vu Manh Cuong and Hoang Manh Ha, the CEO and deputy CEO respectively of Hacofood Group and Rance Pharma, and former Vietnam Pharmaceutical JSC CEO Pham Gia Khai for brokering bribery. Nguyen Van Quan faces charges of fraud and embezzlement.

 

The scandal emerged after environmental police temporarily seized the ring's goods in December last year. In response, Cuong and Ha sought to evade criminal charges by bribing authorities. Cuong provided Ha with US$150,000, which Ha entrusted to Khai, who then passed the money to Quan, believing him to have the necessary connections to mitigate the legal repercussions. However, Quan retained the money for personal use, leading to further legal complications.

 

Initiated in August 2021, the illegal operation capitalized on rising demand for milk powder, falsely claiming nutritional benefits like bird's nest extract and cordyceps aimed at people with diabetes, kidney disease, premature infants, and pregnant women. Ha and Cuong instructed employees to substitute ingredients and use additives, leading to product quality significantly below advertised standards — foundational evidence of fraudulent activity.

 

 

 

By April 11, Ha, Cuong, and four accomplices were officially charged with producing and selling counterfeit goods and violating accounting regulations. The operation reportedly produced 573 types of fake milk powder, amassing nearly VND500 billion (US$19.23 million) in revenues, with significant tax evasion also uncovered.

 

Authorities have so far confirmed 12 varieties of milk powders as counterfeit, including popular brands like COLOS IQ FOR MUM and COLOS IQ DIABETES, with investigations ongoing into 72 additional types.

 

The case highlights the exploitation of regulations allowing businesses to self-declare product qualities without rigorous oversight, as well as the attempted use of bribery to circumvent legal consequences. This revelation underscores the need for tighter regulatory frameworks and enforcement within Vietnam's food and pharmaceutical sectors.

 

  Adapted by ASEAN Now from VN Express 2025-04-29