The Police Investigation Agency under the Ministry of Public Security has finalized the case file and recommended the prosecution of 29 defendants involved in a large-scale manufacturing and trading ring of counterfeit nutritional food.
Organizational Structure and Tactics: Since 2021, two leaders, Hoang Manh Ha and Vu Manh Cuong, established an “ecosystem” of 11 companies, centered around Rance Pharma International Pharmaceutical JSC and Hacofood Group Nutritional Pharmaceutical JSC. The group operated nine other satellite companies to facilitate the registration and distribution of products.
Key Identified Violations:
-
Ingredient Falsification: Products targeting preterm infants, pregnant women, and patients with diabetes or kidney failure were advertised as containing premium ingredients like bird’s nest, cordyceps, and macadamia powder. However, forensic analysis revealed these substances were entirely absent, replaced by vegetable fats and additives.
-
Substandard Quality: All 426 product lines seized were classified as counterfeit because their actual nutritional content was less than 70% of the declared levels.
-
Financial Misconduct: The group is accused of keeping a significant portion of their revenue off-the-books, leading to tax losses of over 28 billion VND.
Distribution Scale: Out of more than 187,000 counterfeit units produced, this ring successfully distributed approximately 170,000 boxes nationwide. The total market value of the goods exceeded 54 billion VND, generating an illicit profit of 39.5 billion VND. Authorities are currently conducting further investigations into related acts of issuing fraudulent testing certificates.