The investigation, led by the Economic Police Division (PC03) of the Ho Chi Minh City Police Department, uncovered what authorities described as an extensive operation involving the manufacture and sale of prohibited traditional medicines, primarily products promoted for the treatment of dermatological conditions.

Owners arrested in nationwide investigation

Investigators identified Nguyen Dang Thu, 55, and Nguyen Dang Hai, 66, as the operators of Bao Thanh Duong's production and business facilities. Both men have been arrested as part of an ongoing criminal investigation into the alleged production and sale of banned goods.

Authorities said the case involved a sophisticated network operating across multiple provinces and cities, prompting the establishment of a dedicated investigative task force.

During coordinated enforcement operations, teams from PC03, working alongside the Ho Chi Minh City Department of Health, searched several Bao Thanh Duong facilities, including locations on Le Lai Street in Ben Thanh Ward and Nguyen Thuong Hien Street in Binh Loi Trung Ward.

At the same time, investigators coordinated with police in northern provinces to trace distribution channels and retail outlets that had received products manufactured by the organization.

Products marketed as traditional remedies

According to investigators, Bao Thanh Duong was widely promoted as a traditional medicine system with a history spanning approximately 200 years and a network of experienced practitioners.

The group advertised herbal products derived from medicinal plants sourced from northern mountainous regions and claimed to use traditional preparation methods. Its products were marketed in various forms, including tablets, lozenges and topical treatments, particularly for skin and dermatological conditions.

One of the group's major facilities in Ho Chi Minh City operated as a clinic and retail outlet providing consultations, examinations and medicine sales.

However, police said inspections and subsequent verification uncovered multiple products that had not been granted circulation permits and were not legally authorized for sale in Vietnam.

Authorities determined that several dermatology-related traditional medicines produced and distributed by Bao Thanh Duong fell into the category of prohibited goods because they had not been registered or approved for circulation.

Large quantities seized

During the searches, investigators seized a large quantity of finished products with an estimated market value exceeding VND10 billion ($393,000).

Police also confiscated medicines and production materials valued at more than VND1.8 billion ($70,700) that were allegedly awaiting distribution.

Officers discovered manufacturing workshops, production equipment, packaging areas and stocks of raw ingredients used to produce the herbal medicines.

At the time of the inspections, employees were reportedly packaging products for shipment to customers.

According to the investigation, from March 2024 until their arrest, the suspects allegedly manufactured and distributed prohibited traditional medicines worth more than VND10 billion ($393,000).

Concerns over consumer safety

Investigators believe the volume of products sold may be substantially larger due to the group's extensive network of clinics, retail outlets and online marketing channels operating across multiple provinces.

Police described the operation as particularly dangerous because it allegedly operated under the appearance of a long-established traditional medicine business, potentially misleading consumers seeking medical treatment.

Authorities warned that the distribution of unapproved medicines could pose serious health risks and undermine public confidence in legitimate healthcare providers and regulatory systems.

"The conduct of those involved is considered particularly dangerous to society, affecting public trust in the healthcare sector and creating potential risks to the health and even lives of patients," investigators said.

Investigation continues

The Ho Chi Minh City Police Department is continuing to expand the investigation to identify suppliers of raw materials, distributors and other individuals involved in the production and sale of the prohibited medicines.

Authorities said anyone found to have participated in the supply chain could face legal action under Vietnamese law.

Police have also urged consumers to verify the origin and licensing status of medicines before purchase and to buy products only from authorized healthcare facilities and licensed pharmacies.

Officials further warned the public against purchasing traditional or modern medicines advertised and sold through unverified online channels without clear information about their origin and regulatory approval.