Prosecutors say a covert cross-border pipeline moved 546 kilograms of gold worth about VND1.208 trillion (US$45.8 million) from China into Vietnam, hiding one-kilogram bars in shoes, burning off identifying marks, and feeding the metal into Hanoi’s jewelry market in cut-up pieces.
According to an indictment released on Nov. 24, authorities have charged Tran Thi Hoan, the actual operator of the Hoan Hue gold shop in Lao Cai Province, along with former Thang Long Trading and Services Company director Pham Tuan Hai and six employees and associates for allegedly running the smuggling network.
Three executives from Vietnam Gold Company have also been charged in a related case involving major accounting violations. All 11 defendants will stand trial before the Hanoi People’s Court.
Investigators say Hoan capitalized on the large price gap between domestic and international gold and exploited weak border oversight in 2024. The indictment describes how a supplier known only as “Fat Lady” (Ba Beo) entered Vietnam in September, visited Hoan’s shop, and later offered 99.99 percent raw gold at prices below the domestic market.
Deals were conducted over WeChat. Couriers were allegedly paid VND250,000 (about US$10) per kilogram to move gold across the Lao Cai border gate.
To avoid detection, smugglers hid one-kilogram ingots in their shoes, taking advantage of screening that did not require footwear removal. After delivery, Hoan’s staff weighed and photographed the bars, then used heat torches to remove markings and cut the gold into smaller pieces.
Between Sept. 17 and Nov. 27, 2024, Hoan allegedly bought 97.3 kilograms of gold from this supplier, worth VND208 billion.
Prosecutors say the network expanded when Hoan partnered with Hai, who sourced gold from a Chinese seller named Chau and arranged additional smuggling routes. Couriers sometimes strapped gold around their waists to cross the border. When Hoan struggled to make payments, Hai and Hoan’s staff allegedly sold the gold directly in Hanoi, with Hai collecting the proceeds.
Authorities concluded that from Sept. 2 to Dec. 2, 2024, Hai smuggled 424 kilograms of gold worth VND943 billion into Vietnam. He initially denied involvement but later admitted to smuggling.
Forensic tests by the Ministry of Public Security found that jewelry seized from Hoan Hue, including rings, necklaces, and bracelets, had gold purity levels between 99.92 and 99.95 percent.
Hoan is accused of earning VND100 million from the scheme. Hai says he profited VND449 million, roughly VND1 million per kilogram, although prosecutors charged him based on smuggling volume, not profit.
In the related case, Vietnam Gold Company is accused of operating two accounting systems: Vacom for tax reporting and QLVang for actual transactions. Prosecutors say chairwoman Tran Nhu My and deputy director Phung Thi Thuyet recorded unreported gold trades and routed payments through bank accounts of 30 acquaintances.
As a result, the company allegedly earned VND4.243 trillion in 2023 but reported only VND646 billion for tax purposes. In the first half of 2024, it reportedly made VND5.726 trillion while declaring just VND332 billion. Investigators estimate the scheme caused more than VND5 billion in tax losses.
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Source: Vietnam Insider