Hai Phong Police announced today the prosecution of Vu Van Tam, director of Shabigroup Joint Stock Company, for producing counterfeit goods. The company, located in Hung Dao ward, Duong Kinh district, operated as a well-organized business, distinct from typical small-scale craft facilities. It boasted a factory, professional packaging lines, complete legal documents, and registered its products with authorities.
However, investigations by the Institute of Criminal Science (Ministry of Public Security) revealed a deceptive operation. Shabigroup's "Trau khong bac ha" feminine hygiene solutions were found to contain none of the declared ingredients, specifically Piper Betle Leaf Extract and Aloe Vera Leaf Extract. These two components were key active ingredients advertised on the product packaging and officially registered with health agencies.
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The seized batch. Photo: CACC
Authorities stated that omitting these active ingredients not only generated illegal profits for the company but also posed a significant risk of inflammation, directly affecting women's health.
During an inspection of the company, authorities seized 8,500 finished bottles that were ready for distribution. Prior to this intervention, Shabigroup had already sold 5 orders, totaling 4,800 products, through various distributors.
Preliminary calculations indicate that the actual production cost for the seized 8,500 bottles was approximately 138 million VND. However, the total market value of these products could have reached up to 700 million VND.
Police noted that during questioning, the company director demonstrated a certain level of legal knowledge and familiarity with inspection and enforcement procedures. This understanding led to evasive and deceptive testimony, as he attempted to legitimize the wrongdoing.
The case has since been transferred to the Police Department for Corruption, Economic, Smuggling, and Environmental Crimes for an expanded investigation. Authorities have also recommended that the Department of Health tighten management and conduct more rigorous post-inspections of facilities that declare the production of cosmetics and functional foods in the area, aiming to better protect consumer rights.
Le Tan
