The Investigation Police Agency (C01) of the Ministry of Public Security has issued its investigation conclusions, recommending the prosecution of Hoang Manh Ha and Vu Manh Cuong. They face charges including manufacturing and trading counterfeit food products, violating accounting regulations leading to serious consequences, and bribery.

In the same case, C01 has recommended prosecuting 27 other defendants for one of the following charges: manufacturing and trading counterfeit food products, violating accounting regulations leading to serious consequences, fraud to appropriate assets, bribery, brokering bribery, and accepting bribes.

According to the conclusions, recognizing the high profitability of the milk business, Ha and Cuong established Rance Pharma in 2021, with Hoang Manh Ha as director and legal representative. Subsequently, they founded Hacofood, naming Vu Manh Cuong as its director.

To commence their fake milk production scheme, the group agreed to build a manufacturing plant in the Phu Nghia industrial cluster, Phu Nghia commune, Chuong My district (formerly), Hanoi. Ho Sy Y was tasked with managing the plant, which operated under the legal entities of Rance Pharma and Hacofood Group.

Before producing the counterfeit powdered milk products, Cuong and Ha also collaborated to establish nine other companies, creating an ecosystem. These companies would register the product brand labels and directly manage the business, distribution, and sale of the milk manufactured at the plant.

A type of counterfeit milk discovered in the operation. Photo: VTV

A type of counterfeit milk discovered in the operation. Photo: VTV

Police determined that the group's products primarily targeted individuals with diabetes, kidney failure, premature infants, and pregnant women. The declared ingredients included bird's nest extract, cordyceps, macadamia powder, and walnut powder. However, these substances were entirely absent in the actual products. Cuong and Ha's group omitted certain initial ingredients, replacing them and adding other additives.

Cuong and Ha instructed employees to complete product declaration procedures at the Sub-Department of Food Safety and Hygiene in Hanoi, Vinh Phuc province, and Hoa Binh province (formerly). The preparation of declaration dossiers varied across different stages and groups. Subsequently, some officials from the Sub-Department of Food Safety and Hygiene assisted in editing these dossiers.

Key milk ingredients replaced

The production process followed an assembly line: ingredients were moved to a mixing room for blending, then transferred to a filling system, canned, capped, expiry dates printed, and finally packaged before being stored as finished products. All production records were kept at the factory.

Workers packaging counterfeit milk products at the manufacturing facility, preparing them for market. Photo: CAND

Workers packaging counterfeit milk products at the manufacturing facility, preparing them for market. Photo: CAND

However, around November 2021, to reduce costs and increase profits, the company's leadership agreed to alter the product formula from what had been declared. They replaced key ingredients such as MCT with non-dairy creamer, fatty acids with omega 369, and individual vitamins and minerals with a synthetic blend, while also reducing the content of many other ingredients.

Despite knowing that these changes would compromise product quality, the defendants continued production, resulting in many quality indicators falling short. From 2021 to 2025, Ho Sy Y was directly responsible for developing the formulas, issuing production orders, and managing the process.

Police concluded that through the tactic of replacing and reducing ingredients, Rance Pharma and Hacofood Group produced a total of over 187,000 boxes of counterfeit milk. They subsequently sold nearly 170,300 boxes, generating close to 18 billion VND. After deducting costs, the group illicitly profited over 11 billion VND.

In the distribution phase, the commercial companies sold nearly 160,000 boxes to the market, generating over 44 billion VND and illicitly profiting 28 billion VND. The total market value of the goods amounted to over 54 billion VND, with total illicit profits exceeding 39.5 billion VND.

During the investigation, police seized 27,100 boxes across 426 powdered milk products. Forensic examination revealed that all these products were counterfeit, as the content of their ingredients did not reach 70% of what was declared on the labels.