A vast counterfeit dietary supplement production operation has been exposed by authorities in a Hanoi industrial park, potentially impacting millions of consumers.
The operation, allegedly run by Medistar Vietnam Company, is believed to have produced and distributed hundreds of tons of fraudulent supplements throughout the country for over a decade. The enterprise has reportedly generated an estimated VND1.8 trillion (US$68.5 million) in revenue through these activities.
On January 18th, Lao Cai provincial police arrested Doan Trung Duc, the 46-year-old general director of Medistar Vietnam, along with five other individuals. The charges against them include producing and trading counterfeit food products, food additives, and seriously violating accounting regulations.
The police have described the operation as “exceptionally large scale,” spanning across Vietnam. A coordinated effort by Lao Cai police, the Ministry of Public Security’s Investigation Police Department for Corruption, Economic Crimes and Smuggling, and Hanoi police led to an inspection of the operation on January 5th.
Upon inspecting a Medistar factory within Quang Minh Industrial Park in Hanoi, investigators discovered thousands of counterfeit and substandard dietary supplement products being manufactured for distribution. Among the counterfeit items were collagen supplements, vitamins, joint health products, and digestive aids.
Preliminary findings suggest that from 2012 to 2025, this group has been distributing hundreds of tons of fraudulent supplements in the market. This illegal activity poses grave risks to consumer health and significantly damages consumer trust. The authorities further allege that hundreds of billions of dong were concealed for illicit profit, which has led to substantial tax deficits for the state.
The investigation by Lao Cai provincial police is ongoing, and there is a possibility for its scope to be expanded in the future.
What is the estimated revenue generated by this counterfeit operation?
The enterprise is believed to have generated nearly VND1.8 trillion (US$68.5 million) in revenue.
What kind of counterfeit products were being produced?
The factory was producing a range of fake dietary supplements, including collagen supplements, vitamins, joint health products, and digestive aids.
What are the implications of these activities?
The illegal activities pose serious risks to consumer health, significantly damage consumer trust, and have resulted in substantial tax deficits for the state.
