The indictment of the Mailisa beauty chain for smuggling cosmetics is not an isolated case. Authorities have uncovered numerous similar operations involving unlicensed or illegally imported beauty products, signaling a persistent and complex issue in the Vietnamese market.

The billion-dollar Mailisa smuggling operation

On November 21, the Ministry of Public Security’s Economic Crime and Corruption Investigation Police Department launched a criminal case for “Smuggling” at MK Skincare and affiliated entities. Phan Thi Mai - commonly known as Mailisa - director of Mailisa Beauty Salon Co., Ltd., along with her husband Hoang Kim Khanh and seven others, were prosecuted under Article 188 of the Penal Code.

According to investigators, from 2020 to 2024, the couple imported cheap, substandard cosmetics from Guangzhou, China, for resale through Mailisa’s spa chain in Vietnam. These products lacked proper declarations and were ineligible for a Certificate of Free Sale (CFS) in China.

They then colluded with Chinese partners to forge contracts and falsify product origins, repackaging the goods as if they were made in Hong Kong (China) to obtain CFS certification there.

Once in Vietnam, the products were marketed as premium Hong Kong-made cosmetics, appealing to consumers' trust in foreign brands. Despite their low production costs, the goods were sold at inflated prices, generating illicit profits worth billions of dong - calculated from just three out of Mailisa's top 100 distributed products.

15,000 illegal face masks uncovered in Hanoi

On July 28, Hanoi Market Surveillance Team No. 5, in coordination with Vinh Hung Ward police, inspected a cosmetic business at 419 Vinh Hung Street. The shop owner, P.H.D, failed to present a business license or documents proving the legality of her products.

Officials found 15,000 Lucenbase Whitening Moisturizing Mask units (25ml each), priced at 12,000 VND (approximately $0.49 USD) per unit. The total estimated value of the seized goods was 180 million VND (around $7,300 USD).

Despite being foreign-made, the products lacked valid invoices or customs documentation and were deemed smuggled under Vietnamese law.

Over 5,000 smuggled skincare items seized from Ngan Korea

On June 1, Hanoi police announced the seizure of more than 5,400 smuggled cosmetic items from Ngan Korea Cosmetics Co., Ltd. The bust was part of a joint operation with Market Surveillance Team No. 8.

The raid took place at a former preschool in Lai Hoang village, Yen Thuong Commune - an unregistered business location under the company. Authorities found 2,520 bottles of Dr. Melaxin Peel Shot Exfoliant Rice Ampoule and 2,880 bottles of the Black Rice variant, both labeled "Made in Korea."

Company representatives admitted the products were sourced from the gray market without legal documentation.

70,000 illegal cosmetic products seized in Bac Giang

In August 2024, the Bac Giang Provincial Police’s Economic Crimes Division, in coordination with Market Surveillance Team No. 1, raided an online business warehouse at 18–22 Quach Nhan 2A Street, Xuong Giang Ward.

The warehouse, managed by T.T.T.H (born 1982), contained more than 70,000 units of various cosmetics including creams, facial cleansers, exfoliants, hair care products, perfumes, and more. The estimated value was around 1 billion VND (about $40,400 USD).

Mrs. H admitted all products were foreign-made, bought from unverified sources, and sold online for profit.

A growing crisis in cosmetic regulation

The Mailisa case has drawn public attention due to its scale and sophistication. However, as these additional cases demonstrate, unregulated imports and fraudulent practices are widespread in Vietnam’s cosmetic market.

Investigators continue to examine the full extent of Mailisa’s operations. Hoang Kim Khanh has reportedly confessed to criminal wrongdoing, as authorities work to calculate the full economic impact of the operation.

Y Nhuy