Gamma Neoderm Plus and Gamma Dolly Ac Acnes Gel, two products found in violation at GAMMA Co. Ltd. — VNA/VNS Photo

HCM CITY — The drug regulator has fined two companies a total of VNĐ165 million (US$6,500) for violations involving substandard cosmetics and pharmaceuticals, as authorities intensify enforcement to protect consumers.

In decisions released on Thursday, the Drug Administration of Vietnam (DAV) under the Ministry of Health said it had imposed administrative penalties on GAMMA Co. Ltd and Pharmedic Pharmaceutical JSC, both based in HCM City, for breaches in production and business practices.

GAMMA was found to have committed two serious violations related to its skincare products. The company manufactured a batch of Gamma Vinatid cosmetics using a formula that did not match its registered dossier, and marketed three other products: Gamma Neoderm Plus, Gamma Lucci and Gamma Dolly Ac Acnes Gel with claimed uses inconsistent with their approved registrations.

Regulators said the value of the infringing products sold on the market exceeded VNĐ41.6 million.

For these offences, GAMMA was fined a total of VNĐ95 million, including VNĐ70 million for producing cosmetics with an unapproved formula and VNĐ25 million for misrepresenting product uses.

Authorities also suspended the company’s cosmetics manufacturing eligibility certificate for 1.5 months, ordered it to recall and destroy all violating product batches, and required it to return all illicit profits. GAMMA must complete corrective measures and report back to the DAV within 30 days.

Pharmedic was fined VNĐ70 million for producing a substandard pharmaceutical product.

A batch of Diclofen tablets (Diclofenac sodium 50 mg), lot number 0040724, was classified as a level-two quality violation, meaning it failed to meet registered standards and could affect treatment efficacy or user safety. The DAV ordered the destruction of the entire batch.

Both companies are required to pay their fines within 10 days of receiving the decisions. Late payment will incur an additional penalty of 0.05 per cent per day on the outstanding amount.

The case raised alarm in Việt Nam over counterfeit and substandard medicines and food products, which authorities say pose a growing threat to consumer safety in the nation.

The DAV said the penalties are part of a broader crackdown launched since early January, as regulators respond to a series of cases involving poor-quality pharmaceuticals and cosmetics, including products containing banned or undeclared ingredients. — VNS