Vietnam Busted for Cooking Oil Scam: Animal-Feed Oil Sold as Edible Oil in ₹26 Crore Racket

Vietnamese authorities have dismantled a major food fraud operation that saw animal-feed-grade oil repackaged and illegally sold as edible cooking oil across the country. The scam, estimated to be worth nearly ₹26.8 crore (8.2 trillion dong), has triggered a nationwide food safety warning.

The bust occurred on June 24 when police raided the premises of Nhat Minh Food Production and an associated Import-Export firm in Hung Yen province. The companies were allegedly importing non-edible, feed-grade vegetable oil, repackaging it under the "Ofood" brand, and selling it as suitable for human consumption.

Investigators revealed that the oil had been distributed widely — from restaurants and street vendors to industrial kitchens and traditional sweet makers — for several years. This oil, typically used for animal feed, is unrefined and potentially toxic, posing serious risks to human health. Long-term consumption could lead to toxin buildup, food poisoning, and chronic illnesses, authorities warned.

In a statement to the South China Morning Post, a representative from Vietnam’s Department of Food Safety confirmed the dangerous nature of the scam, calling the counterfeit oil a "public health threat."

What made the operation even more deceptive was the false marketing of the oil as being fortified with Vitamin A, a claim later debunked by laboratory testing. Furthermore, the group manipulated tax laws, exploiting the 8% VAT applicable only to edible oils—since animal-feed oils are tax-exempt.

To boost profits, the syndicate sold the fake oil at a 17% premium over market prices for legitimate edible oils, exploiting the price gap while disguising the true nature of the product.

This elaborate scheme has once again put the spotlight on food safety violations in Southeast Asia, raising concerns over consumer protection, regulatory loopholes, and criminal exploitation of food systems.

Authorities are continuing the investigation, and legal action is expected to follow against those involved.