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| Livestream session promoting and selling Kera gummies__Photo: https://vneconomy.vn |
The Ministry of Public Security has recently unveiled the latest draft of the amended Penal Code, adding “operating on e-commerce platforms” as a new circumstance for determining the penalty bracket applicable to those committing the crime of manufacturing and trading in counterfeit goods.
The proposal comes amid rapid growth in Vietnam’s e-commerce market. According to metric.vn, a data analytics platform developed by the Data Science Joint Stock Company, Vietnamese customers spent approximately VND 873.6 billion (USD 34.53 million) on online shopping in 2024 across the country’s top five e-commerce platforms: Shopee, TikTok Shop, Lazada, Tiki, and Sendo. The online retail sector is currently growing at a rate 4.5 times higher than traditional retail, with the market size estimated to surpass USD 25 billion.
However, the oversight of goods sold via non-traditional channels such as e-commerce and livestream commerce remains inadequate, especially in sensitive sectors like food, health supplements, and pharmaceuticals. Driven by the potential of high profits, many individuals and companies have introduced substandard or counterfeit products to the market, posing a serious threat to community wellbeing.
Rampant violations stir public concern
A series of cases of producing and selling counterfeit health supplements and milk products have been discovered, drawing public attention.
In March 2025, two influencers, Nguyen Thi Thai Hang (Hang Du Muc) and Pham Quang Linh (Quang Linh Vlogs), were arrested for “manufacturing and trading in counterfeit food” and “deceiving consumers.” Their product, Kera vegetable gummies, was heavily promoted on platforms such as TikTok Shop and Facebook as a rich source of fiber and essential nutrients for both children and adults. However, it is latter found that each box of 30 gummies contained only 0.51 grams of fiber, far below nutritional standards. In just three months from December 2024 till the case was discovered in March 2025, the group sold over 135,000 boxes primarily through social media platforms and their company’s own website. Livestreams by Hang and Linh, who both have large online followers, significantly contributed to driving product sales.
Earlier in January 2024, authorities in Ho Chi Minh City and Binh Duong province discovered a counterfeit operation led by Vu Thanh Cong which produced fake milk powders. Notably, the counterfeit products were marketed online and distributed via Facebook, TikTok, and various e-commerce platforms, with profits estimated at over VND 3 billion (approx. USD 120,000).
In the most serious case to date, the Hanoi authorities in April 2025 discovered a case involving around 600 types of counterfeit powdered milk products, which has caused over VND 28 billion (approximately USD 1.1 million) in losses to the state budget and defrauded consumers of nearly VND 500 billion (around USD 20 million).
The heart of the operation is Rance Pharma Joint Stock Company and Hacofood Group Joint Stock Company, both established in 2021 by Hoang Manh Ha and Vu Manh Cuong in Ha Dong district, Hanoi.
From August 2021, the suspects exploited high domestic demand for nutritional and supplementary food products by establishing a network of businesses that produced fake powdered milk under deceptive branding. Their counterfeit milk powders were advertised as high-end nutritional supplements containing ingredients like bird’s nest, cordyceps, walnut powder, macadamia powder, etc., and often labeled as “authentic” and “clinically proven”. However, lab results confirmed that many of the products did not contain the advertised ingredients and some failed to meet 70 percent of declared nutritional value - the threshold for them to be identified as counterfeit goods. The illicit operation generated nearly VND 500 billion in revenue. These products were widely distributed on e-commerce platforms such as Shopee, Lazada, and online pharmacies.
Legal reforms target counterfeit goods producers, traders and endorsers
Back to the draft revised Penal Code, the Ministry of Public Security proposes increasing the penalties and provides new aggravating circumstances for the crime of “manufacturing and trading in counterfeit goods”.
According to Article 192 of the draft, a person who produces or trades in counterfeit goods would be subject to imprisonment sentence of between one year and five years or a fine of between VND 200 million and VND 2 billion (doubling the current level of VND 100 million - VND 1 billion) if inflicting injury to, or causing harm to the health of, another person with an injury rate of between 31 percent and 60 percent; gaining illegal profit of between VND 100 million and under VND 200 million; or causing property damage of between VND 200 million and under VND 1 billion.
Particularly, for this penalty bracket, the Ministry of Public Security proposes a new circumstance, i.e., using an e-commerce platform with between 500 followers and under 2,500 followers. Meanwhile, those who use an e-commerce platform with between 2,500 followers and under 12,500 followers, the penalty would be between five years and 10 years of imprisonment. For those having 12,500 followers or more, the imprisonment sentence would range between 10 years and 15 years.
As for the crime of producing or trading in counterfeit goods being food, foodstuff or food additives, the Ministry of Public Security proposes adding “operating on an e-commerce platform with 500 followers or more” to the group of circumstances under which an offender would be sentenced to between five years and 10 years of imprisonment. The offender would also be subject to a fine of VND 200 million, doubling the current level of VND 100 million.
For commercial legal persons, the proposed fine cap would be raised to VND 36 billion from VND 18 billion and permanent shutdowns would apply to companies established solely to commit criminal acts or those causing irreparable public harm.
The above-mentioned penalties are those applicable to producers and traders of counterfeit goods. How about celebrities who endorse these products?
In the case of Kera gummies, Miss Grand International 2021 Nguyen Thuc Thuy Tien often appeared alongside Nguyen Thi Thai Hang and Pham Quang Linh to promote Kera gummies. The beauty queen shared the product on her Facebook page, which boasts over 2.6 million followers, claiming that “a gummy contains a dish’s worth of vegetables,” marketing it as a nutritious snack for both children and adults. When the scandal exposed, Tien removed all related posts from her Facebook page.
For the time being, not only Thuy Tien but several celebrities who previously endorsed inferior products have come under fire. Among them, TV presenters Quang Minh and Van Hugo are at the center of controversy for promoting HIUP milk - a product that was officially fined for misleading advertising.
In the promotional videos for HIUP milk, many celebrities claimed it was the “No.1 colostrum milk product for height growth.” To bolster the product’s credibility, the company also used images and testimonials from doctors and medical professionals.
Even now, the official HIUP Facebook page continues to use the images and endorsements of doctors, experts and public figures.
Many media experts argue that celebrity endorsement of inferior products is extremely harmful as consumers often make purchasing decisions based on the perceived credibility and reputation of the endorsers.
Authorities hope that this problem will be redressed once the draft Law amending the 2012 Law on Advertising is adopted. Under the draft law, product endorsers, especially those who are influencers using social media platforms to convey information on products, goods and services to the public, would be held responsible for the contents of such information.
Specifically, product endorsers who possess accounts with 500,000 or more subscribers on cross-border social media platforms would have to comply with the law on advertising and other relevant laws and sign advertising service contracts with advertisers and obtain the latter’s approval and confirmation of advertisement contents.- (VLLF)
