Vietnamese authorities have dismantled a vast counterfeit milk operation, primarily involving the "HIUP 27" brand, which generated an estimated revenue of VND 6,700 billion (approximately USD 275 million). The investigation revealed that these products, widely advertised by celebrities for children's height growth, did not meet their stated nutritional composition, leading to the arrest of top executives from Z Holding and its associated companies.
A sweeping crackdown by Vietnamese authorities has exposed a sophisticated network responsible for producing and distributing counterfeit nutritional products, most notably the "HIUP 27" milk brand. This illicit operation, boasting an astounding revenue of VND 6,700 billion (around USD 275 million), has rocked public confidence in product safety and highlighted the pervasive issue of fake goods in the market.
The Scale of the Deception
The investigation, led by the Ministry of Public Security's Criminal Investigation Agency (C01), has revealed that "HIUP 27" products, often marketed as a "height-increasing milk" for children aged 3-5, were widely advertised across social media platforms by KOLs (Key Opinion Leaders) and celebrities. The promises included claims of increasing a child's height by 3-5 cm after just three months of use.
However, forensic analysis confirmed that these products did not contain the advertised ingredients or nutritional content as declared in their official product registration. This constitutes a severe violation of product quality regulations, classifying the products as counterfeit under Vietnamese law. The operations of the involved parties were highly organized and clandestine, with efforts to destroy evidence upon discovery.
Arrests of Top Executives
In a significant development, authorities have initiated a criminal case for "violating accounting regulations causing serious consequences" and "producing and trading counterfeit food." Arrest warrants and indictments have been issued for several key individuals, including:
- Hoang Quang Thinh: CEO and Chairman of the Board of Z Holding Joint Stock Company.
- La Khac Minh and Nguyen Van Minh: Deputy CEOs of Z Holding, also facing charges related to accounting violations and producing/trading counterfeit food.
- Tran Hai Binh (Deputy CFO), Hoang Thi Hien (Head of Accounting), and Nguyen Quoc Vuong (Head of Finance) of Z Holding, charged with accounting violations.
- Nguyen Thi Thu Hien (Director) and Pham Duy Tan (former Director) of Nature Made Trading and Production JSC, charged with producing counterfeit food. Nature Made's factory was identified as the production site for the fraudulent HIUP 27 products between August 2024 and March 2025.
- Tran Xuan Chien: Director of Alama Business and Technology Co., Ltd., the official distributor and rights holder of HIUP, charged with trading counterfeit food.
The Ministry of Public Security has urged individuals and organizations who have used "HIUP 27" products (in 420g, 650g, and 800g cans, as well as liquid forms) to contact the police to assist with the ongoing investigation.
Broader Implications and Regulatory Challenges
This case underscores the persistent challenge of counterfeit goods in Vietnam, particularly in sensitive sectors like food and nutrition, which directly impact public health. Previous incidents have also revealed extensive networks producing hundreds of fake milk brands targeting vulnerable groups such as diabetics, premature infants, and pregnant women, generating substantial illicit revenue.
The Ministry of Industry and Trade and the Ministry of Health have faced criticism regarding regulatory oversight. While companies might submit seemingly legitimate documentation, violations are often only uncovered after laboratory testing, and many fraudulent products bypass official distribution channels, instead relying on direct marketing, social media, and influencers to reach consumers. This makes detection and enforcement significantly more difficult.
The "HIUP 27" scandal serves as a stark reminder of the need for enhanced inter-agency coordination, stricter market surveillance, and more robust consumer protection mechanisms to safeguard public health and rebuild trust in products circulating in the market. The crackdown is expected to lead to intensified inspections and further measures to combat the pervasive issue of counterfeit goods in Vietnam.