Nutraceutical Firm Accused of Fraud, Pocketing $77 Million in Revenue

The CEO of Medistar Vietnam Co., Ltd. and five accomplices have been indicted for producing and trading counterfeit dietary supplements, as well as violating accounting regulations. The company is accused of distributing hundreds of tons of fake health products, amassing nearly VND 1.8 trillion in profits, despite previously marketing itself as a leading enterprise in the industry.

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According to the website of https://medistar.com.vn, Medistar Vietnam Co., Ltd. positions itself as a leading company in consulting, manufacturing dietary supplements, and cosmetics. Established in 2011, the company boasts nearly 300 employees and operates two factories in Quang Minh Industrial Zone (Quang Minh Commune, Hanoi), equipped with closed production lines and machinery imported from the US, Japan, and South Korea.

The company highlights its strengths, including a highly skilled workforce, robust financial capabilities, and readiness to undertake international projects. Its offices and factories are described as state-of-the-art facilities.

Medistar Vietnam Co., Ltd.’s website.

To enhance credibility, the company displays multiple certifications on its website. These include a Food Safety Eligibility Certificate for Facility 1, issued by the Food Safety Department (Ministry of Health) on January 22, 2025, valid for three years. This certifies compliance with Good Manufacturing Practices (GMP) for health supplements in various forms, including soft capsules, film-coated tablets, hard capsules, granules, powders, solutions, suspensions, and gels.

Additionally, the website features a Hazard Analysis and Critical Control Points (HACCP) certification for the company’s factory at Lot 38-2, Quang Minh Industrial Zone. Issued by Nguyen Thi Hang, Director of TTP Certification and Inspection Joint Stock Company, this certification is valid from November 21, 2022, to November 20, 2025, under Decision No. 22.14937-HACCP/TTP.

By midday on January 19, following widespread reports of the company’s director being prosecuted, Medistar Vietnam’s website became inaccessible.

According to the National Business Registration Portal, Medistar Vietnam Co., Ltd. was established in June 2011, with its headquarters in Phu Dien Ward, Hanoi. Its primary business is the production of dietary supplements.

The company is led by Doan Trung Duc (born in 1980, residing in Trung Yen Urban Area, Yen Hoa Ward, Hanoi), who serves as both CEO and legal representative. Initially, the company had a registered capital of VND 6 billion, with Duc contributing VND 4.2 billion (70%) and Nguyen Thi Hong VND 1.8 billion (30%).

Over time, the company’s registered capital increased significantly: to VND 14.2 billion in November 2014, VND 32 billion, and VND 50 billion in July 2016. By December 2018, the capital reached VND 80 billion, with no changes in the ownership structure.

The Investigation Police Agency of Lao Cai Province has prosecuted six individuals for “Producing and trading counterfeit food, food additives” and “Violating accounting regulations, causing serious consequences.”

As reported by Tien Phong, on January 18, the Investigation Police Agency of Lao Cai Province initiated legal proceedings against Doan Trung Duc and five accomplices. They are charged with “Producing and trading counterfeit food, food additives” and “Violating accounting regulations, causing serious consequences.”

Investigations revealed thousands of counterfeit and substandard dietary supplements produced and packaged at Medistar Vietnam’s factory in Quang Minh Industrial Zone (Hanoi), ready for distribution. Seized products included collagen, vitamin, joint, and digestive supplements.

Medistar Vietnam Co., Ltd. distributed hundreds of tons of counterfeit dietary supplements, generating nearly VND 1.8 trillion in revenue.

Preliminary findings indicate that from 2012 to 2025, the perpetrators sold hundreds of tons of counterfeit supplements, earning nearly VND 1.8 trillion. All transactions were conducted off the books, resulting in hundreds of billions in illicit profits, significant tax losses, and severe health risks to consumers.

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