Police dismantle Rance Pharma ring: 187,025 counterfeit milk boxes produced for premature babies, pregnant women, and diabetics

On April 15, the Investigation Agency of the Ministry of Public Security completed the case file and proposed indictments for 29 defendants in connection with manufacturing and selling counterfeit foods, violations of accounting regulations, fraud and embezzlement, and offering or receiving bribes.

Case overview and key defendants

The two ring leaders are Hoang Manh Ha and Vu Manh Cuong, both born in 1979. Ha has a background in business administration, while Cuong has a background in food technology. Other core defendants include Dang Trung Kien (Deputy Director), Ho Sy Ay (plant operator), Nguyen Thanh Luan, Nguyen Van Tu, chief accountant Nguyen Thu Thuy, and employee Nguyen Thi Mai Huong, each playing different roles within the criminal network.

How the counterfeit food network operated

According to the case file, since 2021 Ha and Cuong established an ecosystem of 11 legal entities to run a large-scale counterfeit food production network. The flagship units are International Drug Joint Stock Company Rance Pharma and HACOFOOD Group, with the production plant located in Phu Nghia Industrial Park, Chuong My District, Hanoi.

To support publication and distribution, the group formed nine satellite companies: International Drug Group, Big Four Pharma, Long Khang Group, Medical Nutrition BFF, Safaco Group, Darifa Group, Win CT, Phuc An Khang, and Duoc A Chau.

To conceal violations, from late 2024 the leaders transferred the roles of legal representatives to subordinate staff while continuing to exercise real control.

Products targeted and alleged ingredient fraud

Production focused on products marketed for people with special nutritional needs, including diabetics, kidney disease patients, pregnant women, and preterm infants. The products were claimed to contain rare ingredients such as bird’s nest extract and cordyceps.

Investigations found that the products did not contain these ingredients. Instead, the group used vegetable fats and additives and drastically reduced vitamins and minerals to maximize profits.

Forensic findings and scale of counterfeit output

Forensic analysis by the Institute of Forensic Science concluded that all 426 detained product lines were counterfeit. Quality indicators were below 70% of what was declared.

Authorities also reported that among 187,025 counterfeit boxes produced, more than 170,000 were distributed nationwide. The total value of goods reached over 54 billion VND, while illicit profits for the entire ecosystem were 39.5 billion VND.

Accounting violations and tax losses

Beyond food fraud, authorities identified serious violations in corporate financial management. From 2021 until the bust, the defendants arranged for most revenue to be kept off the books, resulting in tax losses to the State Budget of more than 28 billion VND.

Next steps

Investigators have separated the issue of counterfeit certification for some officials for separate handling.