The encyclopedia · Advertising & PR · Marketing decision · 2025
A pharma firm's labels promised what its formula didn't deliver — ₫120M, licence suspended
Three products' labels claimed uses untrue to their nature; the gel didn't match its registered formula. Vietnam's Drug Administration: ₫120M + recall.
Phương Đông Pharma & Trading · 2025-11-07
What happened
Phương Đông Pharma & Trading, a cosmetics maker in Bắc Ninh's Hạp Lĩnh industrial cluster, had three problems its labels could not survive. First, its Oral care gel — batch 310325/MP, produced 8 March 2025 — was made to a formula different from the one registered in its product notification dossier. Second and third, the labels of that gel and of two more products, Nanotech AG+ and Kam For Kids, stated uses that did not match the true nature of the goods.
Vietnam's Drug Administration suspended circulation and ordered the products recalled on 14 October 2025, then followed with Decision 663/QĐ-XPHC on 7 November: ₫70 million for manufacturing against the registered formula and ₫50 million for labels stating uses untrue to the products' nature — ₫120 million in total. The violating goods had already sold for close to ₫100 million.
The sanctions went beyond money. The company's certificate of eligibility to manufacture cosmetics was suspended for a month and a half, the three products had to be recalled and destroyed, the nearly ₫100 million in sales handed back as illicit profit, and results reported to the Drug Administration within 30 days. For Vietnam's crowded cosmetics shelf, the message was that a label's claims are part of the product — and both must match the paperwork.
Why it happened
- Two failures compounded: the gel didn't match its registered formula, and three products' labels promised uses untrue to their nature.
- The licence suspension is the sting: a month and a half without the certificate to manufacture cosmetics stops the business, not just the product.
- Recall, destruction and disgorgement: the ₫120M fine came with returning the nearly ₫100M the violating goods had already earned.
The lesson
A label's claims are part of the product: Phương Đông's cosmetics promised uses their nature didn't support — Vietnam fined ₫120M, suspended the licence, burned the stock.
Aftermath
Decision 663/QĐ-XPHC of 7 November 2025 imposed ₫120 million in fines, suspended the manufacturing-eligibility certificate (No. 04/GCN-ĐĐKSXMP) for a month and a half, ordered recall and destruction of Oral care gel, Nanotech AG+ and Kam For Kids, disgorged the nearly ₫100 million in sales, and demanded a report within 30 days. Circulation had been suspended since 14 October 2025.
Sources
- Kiến Thức: Công ty Dược phẩm và Thương mại Phương Đông bị xử phạt 120 triệu (11 November 2025)
- Kinhdoanhnet: Điểm loạt vi phạm, Công ty Dược phẩm Phương Đông bị phạt 120 triệu đồng (13 November 2025)
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