According to the indictment released on Nov. 24, authorities have charged Tran Thi Hoan, the real operator behind the Hoan Hue gold shop in Lao Cai Province, along with Pham Tuan Hai, former director of the Thang Long Trading and Services Company, and six other employees and associates, on allegations of running the illicit operation.
Three executives from Vietnam Gold Company were also charged in a case for serious accounting violations.
The 11 people will stand trial before the Hanoi People’s Court.
Investigators say Hoan exploited the sharp price gap between domestic and international gold and took advantage of weak oversight at the China–Vietnam border in 2024.
The indictment describes how a mysterious supplier known only as “Fat Lady” (Ba Beo) crossed into Vietnam in September, visited Hoan’s shop, and later offered raw 99.99% purity gold at below-market prices.
Deals were arranged over WeChat, and couriers were allegedly paid VND250,000 ($10) per kilogram to sneak the gold across the Lao Cai border gate.
To avoid detection, smugglers reportedly hid one-kilogram ingots inside their shoes, taking advantage of screening procedures that did not require individuals to remove footwear. Once delivered, Hoan’s staff weighed the shipment, photographed it, and, under instruction, used heat torches to erase markings that could reveal foreign origin before breaking the bars into smaller pieces.
Between Sept. 17 and Nov. 27, 2024, Hoan is accused of buying 97.3 kilograms of gold from the same source, valued at VND208 billion.
Prosecutors say the network expanded further through Hoan’s partnership with Hai, who sourced gold from a Chinese seller named Chau and allegedly organized additional smuggling routes. At times, couriers reportedly wrapped gold around their waists to carry it across the border. When Hoan struggled with payments, Hai and Hoan’s employees allegedly sold the gold directly to customers 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 wrongdoing but now admits to smuggling activities.
Forensic testing by the Ministry of Public Security found that jewelry seized from Hoan Hue, including rings, necklaces and bracelets, contained gold purity levels between 99.92% and 99.95%.
Hoan is accused of earning VND100 million from the scheme, while Hai claims he profited VND449 million, about VND1 million per kilogram, though prosecutors did not charge him based on the profit figure, only on the volume smuggled.
In the prosecution, Vietnam Gold Company is accused of hiding revenue by running two separate accounting systems: Vacom for tax declarations and QLVang for actual business operations. Prosecutors say chairwoman Tran Nhu My and deputy director Phung Thi Thuyet recorded undocumented gold transactions off the books and routed payments through accounts belonging to 30 acquaintances.
As a result, the company reportedly earned VND4.243 trillion in revenue in 2023 but declared only VND646 billion for tax purposes. In the first half of 2024, it allegedly brought in VND5.726 trillion while reporting only VND332 billion. Investigators say the scheme caused more than VND5 billion in state tax losses.
