Overview 

Vietnamese authorities have issued a nationwide public health warning after uncovering a large-scale counterfeit cooking oil operation. On June 24, police in Hung Yen province raided Nhat Minh Food Production and an affiliated import-export firm. They exposed a years-long scheme in which the companies repackaged animal-feed-grade oil and sold it across the country as edible cooking oil under the “Ofood” brand.

Toxic Oil Passed Off as Edible Cooking Oil

Investigators revealed that the companies imported cheap, unrefined vegetable oil meant strictly for animal feed and falsely labelled it for human consumption. They distributed this oil to restaurants, industrial kitchens, street vendors, and traditional snack shops throughout Vietnam. Officials from the Department of Food Safety warned that this oil poses serious health risks, including poisoning, toxin accumulation, and long-term chronic illnesses.

Massive Profits and Tax Loopholes

The counterfeit operation reportedly ran for over three years, during which the syndicate sold thousands of tonnes of the fake oil. Vietnam Television estimated that the group earned around 8.2 trillion dong (approximately ₹26.8 crore). The criminals exploited the price gap between feed-grade and edible oils—selling the repackaged oil at a 17% markup—while also evading taxes by misclassifying the product. Feed-grade oil is exempt from Vietnam’s 8% value-added tax, unlike edible oil. Authorities found that the operation used underground pipelines to transfer the oil into containers labelled for human use, effectively disguising the fraud. The labels falsely claimed the oil was enriched with Vitamin A, a claim later disproven through lab testing.

Criminal Charges Filed

During the raid, officials seized over 900 tonnes of illegally imported oil. Authorities have charged three individuals with crimes related to the production and sale of counterfeit food products, smuggling, and the use of illegal additives. In response to the scandal, Vietnam’s ministries of Health, Industry, and Trade have announced nationwide inspections of all cooking oil producers. They are also urging businesses to verify supplier credentials and documentation more strictly to prevent similar cases in the future.

Source: NDTV