As previously reported by VietNamNet, the Investigation Police Agency under the Ministry of Public Security has completed its investigation and proposed prosecuting Nguyen Nang Manh, former chairman of MediUSA, director of MegaPharco, deputy director of MediPhar and a founding shareholder of Hung Phuong Company, along with other individuals involved in the case on multiple charges.

According to the investigation, since 2016 Nguyen Nang Manh played the central role alongside Do Manh Hoang, director of MediPhar, and Khuc Minh Vu, director of Viet Duc Company, in organizing and operating a network of 12 companies and two factories - MediPhar and MediUSA - specializing in the large-scale production and distribution of counterfeit dietary supplements with a wide range of products.

The suspects also allegedly maintained two accounting systems to conceal revenue and reduce tax obligations, and paid bribes in order to obtain particularly large illicit profits.

To manufacture and distribute counterfeit products nationwide, the group used Hung Phuong Company to import raw materials, while MediPhar and MediUSA handled the production of dietary supplements. MegaLife produced packaging and labels, MegaPharco leased land for factory operations, and seven additional companies were used to distribute and brand the products.

Profits generated by MediPhar and MediUSA were divided according to shareholding in MediPhar: Nguyen Nang Manh held 70 percent, Do Manh Hoang 25 percent and Khuc Minh Vu 5 percent.

Profits from Hung Phuong Company were shared based on ownership stakes of 80 percent for Nguyen Nang Manh and 20 percent for Nguyen Thi Hai Ha. Profits from other companies - including MegaLife, MegaPharco, Viet Duc, Viet Phap, VitaPharm, USA Joint Venture, VinPhar, Pharmacist and HadiPhar - were transferred to MediPhar and MediUSA before being distributed according to the same ownership ratios.

Counterfeit production generated enormous profits

Investigators determined that, responding to market demand, Nguyen Nang Manh and Khuc Minh Vu instructed Hoang Thi Huong, head of the registration department, to use formulas previously approved for products belonging to the group or formulas of products already circulating on the market. These formulas were then modified by adjusting ingredients and concentrations to create new products.

The formulas were subsequently passed to Nguyen Thi Yen, who was responsible for research and development at MediPhar, or Dang Thi Ngoan, responsible for research and development at MediUSA, for review and approval.

However, during product development the suspects did not conduct proper testing of production processes, formulas or product quality as required by regulations.

After sample products were created, Hoang Thi Huong contacted companies such as TSL and Avatek to conduct food safety testing. In reality, investigators found that these companies did not collect samples for testing but still issued test result certificates. Based on those documents, the Food Safety Authority under the Ministry of Health granted approval for product announcements.

According to investigators, testing was largely carried out only for appearances. Only a limited number of simple tests were conducted each month, typically on five to seven products, focusing on indicators such as vitamin or amino acid components in order to respond to inspection teams.

To reduce costs, increase profits and enhance competitiveness, Nguyen Nang Manh and Do Manh Hoang allegedly directed subordinates to issue production orders that cut ingredient components and concentrations compared with what had been publicly declared or printed on product labels.

The investigation found that the group registered 416 health supplement products approved by the Food Safety Authority and another 57 dietary supplement products registered with the Hanoi Food Safety Sub-Department under the self-declaration procedure. Of these, 18 products were later withdrawn and 39 remain in circulation.

In addition, MediUSA and MediPhar also carried out contract manufacturing for 31 other companies.

According to forensic examination results, 88 dietary supplement products produced by MediPhar and MediUSA were identified as counterfeit. Authorities determined that Nguyen Nang Manh and his accomplices earned more than VND264 billion (approximately US$10.6 million) from the operation.

During questioning, the suspects admitted that most dietary supplement products produced by the MediUSA and MediPhar factories from 2020 to April 2025 did not meet the standards stated in official product declarations or printed on packaging.

T. Nhung