Vietnamese Court Tries 19 Over Fake Health Products and 55 Billion VND Tax Evasion

On July 10, the Hanoi People's Court reopened the trial of 19 defendants accused of producing and selling about 13 million counterfeit health products. The case centers on Pham Vu Khiem, director of Herbitech, and his wife Tran Thi Hue, who are charged with three counts of manufacturing and trafficking fake food and dietary supplements, serious accounting violations, and money‑laundering.

Prosecutors allege that from 2018 to early 2025 the company manufactured 67 types of falsified products, sold them to 35 customers, and earned illegal profits of roughly 1.3 billion VND. Using a dual‑bookkeeping system, the defendants concealed more than 190 billion VND of revenue, resulting in a projected loss to the state budget of 55 billion VND. The trial is expected to continue for several days, and authorities say the case highlights gaps in regulation of health‑product manufacturing and tax compliance.

The court’s proceedings aim to hold the organizers accountable and underscore the need for tighter market supervision by the Ministry of Health, the Ministry of Finance and market‑inspection agencies.