The agency condemned the practice as a serious violation of food safety regulations with potentially severe consequences for public health.
The VFA cited Article 39 of Decree 15/2018/ND-CP, which stipulates that the Ministry of Industry and Trade is responsible for food safety management of vegetable oils throughout the entire supply chain — from production and processing to distribution and retail. The use of non-food-grade imported oil for processing food products intended for human consumption, the VFA warned, poses significant health risks and breaches legal requirements.
To mitigate risks and protect consumers, the VFA urged food businesses — particularly mass caterers, industrial kitchens, and meal providers — to thoroughly verify ingredient documentation, including declarations of conformity and source records, rather than relying solely on product labels and packaging. Manufacturers and vendors were also warned not to use ingredients for purposes other than those legally registered, regardless of whether documentation appears complete. Any suspicion of misconduct should be reported promptly to relevant authorities.
The agency emphasized that strict adherence to the intended use of food-grade ingredients is not only a technical requirement but a legal obligation. Entities that deliberately mislabel or misuse ingredients—especially when they fail to meet human safety standards—will face serious legal consequences under Vietnamese law.
The warning follows the recent bust of a massive counterfeit oil distribution ring in Hung Yen Province, where authorities prosecuted three key suspects and seized over 1,000 tons of smuggled cooking oil unfit for human consumption. Investigations revealed that the illicit oil was primarily sold to canteens, restaurants, food stalls, and traditional snack producers — with children among the end consumers.
Among the key products uncovered was OFOOD-brand vegetable oil, manufactured by Nhat Minh Food Import Export & Production Company Limited. This oil was legally designated for animal feed and failed to meet human food safety standards, yet tens of thousands of tons were deceptively marketed and distributed as edible cooking oil.
To disguise the fraud, the group created multiple shell companies, falsified product declarations, and distributed the counterfeit oil under the guise of legitimate food items.
Another company implicated in the network is An Hung Phuoc Import - Export Trading Company Limited, which knowingly helped distribute the substandard oil. Investigators found that the ring profited in two key ways: first, through price manipulation — edible cooking oil sells for roughly 17 percent more than oil for animal feed; and second, through tax evasion — human-grade cooking oil is subject to 8-percent VAT, while animal feed oil is tax-exempt.
According to Hung Yen Provincial Police, the criminal network amassed over VND8.2 trillion (approximately US$320 million) in revenue over the past three years. The case remains under investigation, with authorities pledging to tighten enforcement to prevent similar violations in future.
