Vietnamese authorities have dismantled a large-scale counterfeit milk powder operation involving two companies that manufactured and distributed nearly 600 fake nutritional products targeting diabetics, premature infants, and pregnant women.

The operation generated approximately VND 500 billion (around USD 20 million) in revenue before being exposed.

The Ministry of Public Security has initiated criminal proceedings and temporarily detained eight individuals on charges of “Producing and trading counterfeit food” and “Violating accounting regulations causing serious consequences.”

Two companies at the center of the scandal

At the heart of the operation are Rance Pharma Joint Stock Company and Hacofood Group Joint Stock Company, both based in Ha Dong District, Hanoi.

The two companies were allegedly established and led by Vu Manh Cuong and Hoang Manh Ha, who served as the masterminds behind the counterfeit production and distribution network.

From August 2021, the suspects exploited high domestic demand for nutritional and supplementary food products by establishing a network of businesses that produced fake powdered milk under deceptive branding.

Despite claiming their products contained high-value ingredients such as bird’s nest extract, cordyceps, macadamia powder, and walnut powder, forensic analysis revealed these substances were absent. Instead, inferior substitutes and additives were used.

According to police, lab results confirmed that the quality of some ingredients in the powdered milk reached less than 70% of the advertised nutritional value  -  legally qualifying them as counterfeit goods.

Nearly 600 fake milk variants produced

Over the course of four years, the network manufactured 573 different types of fake powdered milk. Products were marketed under numerous brand names such as Talacmum, Cegold, The Empire, Ikidmi, Kawai, Hacomax, Kidnimil, and Gumi Colos 24h Baby.

The companies heavily promoted their products through social media and traditional media outlets, often leveraging the credibility of celebrities, doctors, and health professionals to build consumer trust.

Products were widely distributed through baby supply stores, supermarkets, and maternal and infant care shops nationwide.

Sophisticated corporate cover

Rance Pharma was officially registered on August 24, 2021, with an initial charter capital of VND 10 billion. Key shareholders included Vu Manh Cuong (VND 7 billion), Hoang Thi Bich Huong (VND 500 million), and Hoang Manh Ha (VND 2.5 billion). Ha also acted as the company’s legal representative and director.

Hacofood Group, registered on April 22, 2022, was similarly structured, with Nguyen Van Tu listed as its legal representative. Both company headquarters are now closed, and their official websites and social media pages have been taken offline as of April 12.

Investigations revealed that Cuong and Ha orchestrated the entire production-to-sales pipeline, even controlling the financial and accounting operations. Ha signed key business documents, including financial reports and product declarations. In addition to the two main firms, the group set up nine more companies to register product trademarks and facilitate nationwide distribution.

Ongoing investigation

Authorities seized thousands of counterfeit products labeled under various brands, including Sure IQ, and are continuing to expand the investigation. The Ministry of Public Security has confirmed that all aspects of the operation  -  from product formulation to accounting  -  were riddled with regulatory violations, contributing to severe public health risks and financial misconduct.

This case underscores the pressing need for stricter oversight in the nutritional supplement and pharmaceutical sectors in Vietnam, especially as vulnerable populations such as infants and patients with chronic illnesses were directly targeted.

Tien Dung