According to the latest indictment, a business network led by Z Holding’s executives has been accused of manufacturing and distributing millions of counterfeit nutritional products. The investigation focuses heavily on “Hiup 27,” a product marketed as a height-growth supplement for children.
Production Violations and Quality Failures Legal documents reveal that the leadership established a closed-loop system, from brand registration to internal factory production. Forensic analysis by authorities confirmed that numerous product batches failed to meet declared nutritional values. Notably, the primary children’s formula contained essential nutrients at levels below 70% of the registered standards, legally classifying it as counterfeit.
Despite being notified of quality failures as early as September 2024, the management allegedly continued to order production using substandard formulas to ensure uninterrupted sales.
Sales Network and Marketing Tactics The case highlights a multi-tiered business model consisting of 26 systems and 208 subordinate sales groups. The core strategy involved hiring celebrities, influencers, and media personalities to exaggerate the product’s benefits. These promotional campaigns misled thousands of parents into purchasing products at prices significantly higher than their actual value.
Significant Financial Figures
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Sales Volume: Approximately 4.2 million units of 22 product types were sold, including nearly 900,000 units of the Hiup line.
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Price Disparity: While the factory cost per unit was approximately 87,000 VND, it was sold to the public for an average of 547,000 VND.
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Profitability: Total revenue exceeded 2,000 billion VND, resulting in a net profit of over 319 billion VND after expenses.
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Personal Gain: Key figures within the organization are accused of illegally profiting tens of billions of VND each.
Authorities are currently extending the investigation to include entities involved in the production chain and individuals who participated in deceptive advertising to ensure full legal accountability.
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