A defendant testifies before the court on Monday. — VNA/VNS Photo

HÀ NỘI — Eighteen people went on trial in Hà Nội on Monday over an alleged counterfeit milk operation worth more than VNĐ2.4 trillion (US$93 million), one of the country’s largest food fraud cases in recent years.

The case centres on Z Holding JSC, whose chairman Hoàng Quang Thịnh and senior executives are accused of orchestrating an extensive corporate network to conceal the production and sale of fake food products, evade taxes and launder illicit proceeds.

Prosecutors alleged that between 2023 and May 2025, Thịnh worked with two other senior executives to establish 26 companies, 27 sales systems, more than 200 sales groups and nearly 180 individual business entities.

The structure was designed to legitimise illegal trading activity, falsify tax declarations and circulate money derived from criminal conduct.

Investigators said companies within the Z Holding system generated total revenues of more than VNĐ6.6 trillion (US$255 million) during the period.

Forensic assessments identified 26 products as counterfeit, with sales of fake goods alone valued at more than VNĐ2.4 trillion. Prosecutors alleged that Thịnh and his two associates earned more than VNĐ149 billion ($5.7 million) in illegal profits.

Authorities also accused the defendants of directing accounting staff to underreport revenue and manipulate tax filings through affiliated companies and household businesses, causing estimated tax losses of more than VNĐ1.6 trillion ($62 million).

The group further sought to conceal illicit proceeds by creating internal investment funds to channel money into corporate shareholdings and real estate transactions.

More than VNĐ83 billion ($3.1 million) was allegedly laundered through these arrangements, including payments made through cash withdrawals and bank accounts held in the names of relatives.

The defendants have been charged by the Supreme People’s Procuracy with producing and trading counterfeit food products, violating accounting regulations with serious consequences, along with money laundering.

Thirteen defendants are current or former executives and employees of Z Holding, including its chairman, four deputy chief executives and senior finance and accounting staff.

The remaining defendants include executives and shareholders from affiliated companies operating within the same corporate system.

Prosecutors said three senior figures, including Thịnh, face all three charges. Others face one or two charges depending on their alleged roles in production, sales or accounting violations.

The trial is ongoing. — VNS