Several Vietnamese media last week reported the dismantling of an illegal milk powder production and manufacturing ring operating in Hanoi and neighbouring provinces.
A total of 573 different brands of counterfeits valued at nearly VND500bn (US$19.3m) was discovered during the exercise led by Vietnam’s Ministry of Public Security.
The counterfeits were meant for consumption by vulnerable groups, such as premature infants, pregnant women, as well as individuals suffering from diabetes and kidney diseases.
One of the counterfeits discovered claimed to contain bird’s nest extract, cordyceps, macadamia powder, and walnut powder.
In actual fact, the counterfeit contained none of the above ingredients, local English daily newspaper Vietnam News reported.
The counterfeits were said to be produced by Rance Pharma International Pharmaceutical Joint Stock Company (JSC) and Hacofood Group Nutrition Pharmaceutical JSC.
A total of eight people from the two companies have been prosecuted for producing and trading of fake food products, as well as violation of accounting regulations causing serious consequences.
Vietnamese PM has since ordered five key government ministries to step up measures against counterfeit food and milk products.
Amendments to food safety regulations involving dairy products could be expected, as the Ministry of Health, the Ministry of Industry and Trade and relevant agencies were being tasked to review existing food safety regulations.
To strengthen market management, the Ministry of Industry and Trade was also told to “promptly detect, prevent, and to strictly handle” cases of counterfeit food production and trade.
A review of food advertisements in the press and on the internet would also be conducted by the Ministry of Culture, Sports and Tourism, which will then handle violations accordingly to existing laws.
The Ministry of Public Security, on the other hand, was ordered to speed up the investigation and promptly bring violators to trial.
“According to press reports, recently, authorities have discovered a number of businesses, organisations, and individuals producing, advertising, and distributing many types of fake milk;
“Many consumers have expressed concern and insecurity because they have accidentally purchased and used these milk products.
“The Government has assigned the management of food safety and prevention of fake food to ministries, central agencies, and People’s Committees of provinces and centrally run cities according to regulations,” said the notice sent out to the ministries.
The People’s Committees, which oversees governance at the provincial and city levels, were also roped in to ensure that dairy products sold in their area are compliant with food safety laws.
The notice, sent out on April 17, can be accessed from the official website of Vietnam Food Administration (VDA) that operates under the Ministry of Health.
Vietnam Dairy Association: Companies involved are not members
In the wake of the scandal, the Vietnam Dairy Association (VDA) has clarified that the two companies involved in fake milk production are not their members.
It has made the clarification as it said that the scandal, and the way it was reported in the media and social media has damaged the reputation of law-abiding dairy companies.
Rance Pharma International Pharmaceutical JSC and Hacofood Group Nutrition Pharmaceutical JSC were set up in August 2021 and April 2022 respectively.
The former is said to be involved in not only milk and dairy products manufacturing, but also fruits and vegetables, and aquatic products processing, amongst others.
The latter is involved in an array of businesses from pharmaceutical chemicals production to wholesale automobiles, beverages, and foods businesses.
The VDA said it would continue to coordinate with relevant ministries in market surveillance.
“The goal is to contribute to maintaining social trust and protecting the sustainable development of the Vietnamese dairy industry,” it said.
