In connection with the large-scale production, distribution, and sale of counterfeit milk powder across Hanoi and neighboring provinces, the Investigation Police Department of the Ministry of Public Security issued decisions to prosecute and arrest four individuals on the evening of April 28.
Along with the arrests, the authorities executed search warrants at the residences of the accused for offenses including "Fraudulent appropriation of property," "Offering bribes," and "Mediating bribery." Those charged include Nguyen Van Quan for "Fraudulent appropriation of property," Vu Manh Cuong and Hoang Manh Ha for "Offering bribes," and Pham Gia Khai for "Mediating bribery."
As previously reported by SGGP Newspaper, on April 10, the Ministry of Public Security initiated a criminal investigation, prosecuting and detaining four suspects for "Manufacturing and trading counterfeit goods as food products" (counterfeit milk powder) and another seven individuals for "Violating accounting regulations causing serious consequences."
During the investigation, police seized 90 batches of powdered milk and nutritional products—amounting to 26,740 cans and boxes across 84 different types. Analysis confirmed that 12 batches contained certain substances at less than 70 percent of the declared quality, thus classified as counterfeit. The remaining 78 batches are still undergoing examination to determine violations related to the production and sale of counterfeit food.
Investigators determined that since 2021, the suspects maintained two separate sets of accounting books to conceal actual revenues and illegally distribute profits among shareholders, causing significant tax losses. Rance Pharma evaded over VND24 billion in VAT payments, while Hacofood avoided paying around VND4.4 billion.
Authorities also uncovered acts of bribery, bribery mediation, and fraud. Following an inspection and seizure of goods by the environmental police on December 27, 2024, Hoang Manh Ha and Vu Manh Cuong colluded to "resolve" the matter through bribery, aiming to avoid criminal charges and instead face administrative penalties.
Cuong prepared US$150,000, handing it to Ha, who then contacted Pham Gia Khai, the former CEO of Vietnam Pharmaceutical Joint Stock Company. Khai in turn attempted to deliver the money to Nguyen Van Quan, a self-employed businessman, who falsely claimed to have high-level connections capable of mitigating the legal consequences. Trusting these claims, Khai proceeded, but Quan misappropriated the $150,000 for personal use.
