Authorities say a pharmacy professor masterminded a sophisticated operation that smuggled more than 50 tons of caffeine across borders.
Vietnam’s Department of Drug Crime Investigation Police (C04) under the Ministry of Public Security has dismantled a transnational caffeine smuggling ring accused of trafficking 50 tons of caffeine for the production of synthetic drugs.
Speaking at a ceremony honoring outstanding anti-drug crime achievements on May 19, C04 officials said the operation was uncovered through coordinated investigative work with police in Dien Bien Province.
Authorities described the network as a highly organized cross-border smuggling operation.
Tran Phi Hung - Doctor of Pharmacy and head of the pharmaceutical department at the National Hospital of Traditional Medicine. Photo: Ministry of Public Security
According to investigators, caffeine was transported from overseas into Vietnam, routed through Laos, and then moved onward to Myanmar, where it was allegedly used in the production of synthetic narcotics.
A representative from C04 said the suspects exploited differences in legal regulations between countries as well as weaknesses in electronic customs clearance systems to carry out the smuggling scheme through import-export activities.
Police identified Tran Phi Hung - a Doctor of Pharmacy and head of the pharmaceutical department at the National Hospital of Traditional Medicine - as the alleged mastermind behind the operation.
Authorities said Hung gradually built the trafficking network by taking advantage of differing regulations governing caffeine imports in neighboring countries.
Initially, Hung allegedly exploited import licenses granted to Khoi Nguyen Company and Hoa Duoc - Duoc Pham 1 Company, which were authorized to import caffeine for medical purposes.
Investigators said Hung arranged caffeine purchase contracts and worked with Cao Thi Lien and Trinh Thi Hoa to establish distribution channels in Laos and Myanmar.
To legitimize the smuggling activities, Hung allegedly instructed his son Tran Si Hoang and nephew Nguyen Thanh Dat to establish Vinh Hoang Company and Van Phuc Company to sign fraudulent caffeine trading contracts.
The suspects then issued fake invoices for “ghost” customers while deliberately omitting complete information in an effort to prevent authorities from tracing the movement of the caffeine shipments.
According to investigators, the caffeine was actually transported to a warehouse operated by T&T VINA Co., Ltd., managed by Nguyen Thi Thu in Nghe An Province.
At the warehouse, the suspects allegedly repackaged the caffeine into bags disguised as cement or animal feed products.
Authorities said the group exploited loopholes in customs inspection procedures by concealing caffeine inside ordinary goods already declared to customs for clearance.
Payments for the caffeine transactions were reportedly transferred through Vietnamese intermediaries in Laos into bank accounts belonging to acquaintances of Tran Phi Hung.
Investigators said the money was later funneled back into accounts linked to shell companies to legitimize the transactions under fake commercial contracts before profits were distributed among members of the network.
Major investigation launched
Seized caffeine shipments. Photo: Ministry of Public Security
Seized caffeine shipments. Photo: Ministry of Public Security
Given the particularly serious nature of the case, the Department of Drug Crime Investigation Police reported the matter to the Ministry of Public Security leadership and launched a specialized investigation known as Case 135VL.
Authorities deployed multiple investigative measures, including financial tracking, border surveillance, inter-agency coordination and international cooperation efforts aimed at dismantling the entire network.
Investigators said the operation followed the principle of targeting the entire organization rather than only lower-level participants.
The task force coordinated intelligence operations across Vietnam while working closely with the Lao Ministry of Public Security to establish a cross-border enforcement strategy.
During the investigation, authorities mapped out the relationships among suspects and analyzed patterns in the movement of money between bank accounts.
The investigation ultimately uncovered the trafficking routes used to transport the caffeine as well as the methods employed by the suspects inside Laos.
Once sufficient evidence had been gathered, authorities on February 27 deployed nearly 300 officers across 18 coordinated task forces operating in Hanoi, Hai Phong, Dien Bien, Son La, Nghe An and Ha Tinh.
The operation resulted in the seizure of 19 tons of caffeine that had already cleared customs without proper declaration.
Authorities said the shipments had been hidden among ordinary cargo belonging to T&T VINA and were being prepared for transport through Laos into Myanmar.
Investigators later conducted additional searches, verified evidence and tracked down individuals linked to the wider trafficking network.
Authorities also worked to recover caffeine shipments and assets hidden by suspects in both Vietnam and Laos.
To date, police have seized 50.7 tons of caffeine, six vehicles, 12 computers and 25 mobile phones.
Authorities have also frozen or suspended transactions involving 60 bank accounts.
Investigators are additionally examining seven real estate properties connected to suspects in the case.
So far, C04 has prosecuted 10 suspects, including six charged with smuggling, three with illegally issuing invoices and one with acting as a bribery broker.
In Laos, the Lao Ministry of Public Security has arrested and prosecuted six suspects accused of trafficking and transporting drug precursors under Lao law.
Vietnamnet.vn
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