Animal-Feed Oil Sold As Cooking Oil In Vietnam Food Scam, Police Bust ₹26 Crore Racket

Authorities in Vietnam have issued a nationwide public health warning following the discovery of a massive counterfeit oil operation. On June 24, police in Hung Yen province raided Nhat Minh Food Production and an affiliated Import-Export Company, uncovering a years-long scheme involving the sale of animal-feed-grade oil repackaged and marketed as edible cooking oil.

According to VnExpress, the imported feed-grade vegetable oil was re-labelled under the "Ofood" brand and distributed across the country, reaching restaurants, industrial kitchens, street vendors, and even traditional sweet and snack shops.

"This fake cooking oil threatens public health," a representative from Vietnam's Department of Food Safety warned, quoted South China Morning Post (SCMP).

Animal-feed oil, typically unrefined and unfit for human consumption, can cause poisoning, toxin accumulation, and long-term health issues such as chronic diseases. Despite this, the syndicate allegedly sold thousands of tonnes over the past three years, raking in an estimated 8.2 trillion dong (approx Rs 26.8 crore), according to Vietnam Television.

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Investigators found the group capitalised on the price differential between feed-grade and edible oil, selling the repackaged product at a 17 per cent premium. To avoid taxes, they exploited the 8 per cent value-added tax applied only to edible oils, as animal-feed oil is tax-exempt. The operation also falsely claimed the oil was enriched with Vitamin A, a claim that lab tests later disproved.

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Authorities say the oil was moved through underground pipelines into containers labelled for human use, helping the syndicate mask the fraud. Over 900 tonnes of illegally imported oil were seized during the raid. Three suspects now face charges related to the production and sale of counterfeit food products, additives and smuggling, South China Morning Post reported.