Hanoi, Jan. 15 -- The Hanoi People's Court on January 14 handed down sentences to 18 defendants in the fake milk case involving the Z Holding Company, convicting them of producing and trading in counterfeit goods being food, foodstuffs, or food additives (Article 193 of the Penal Code), violating accounting regulations causing serious consequences (Article 221), and laundering money (Article 324).

During the trial, the jury found numerous institutional and regulatory loopholes in the management of food products, corporate accounting and finance, and cash-flow supervision. On that basis, the first-instance verdict issued a series of comprehensive and direct recommendations aimed at thoroughly addressing these shortcomings.

Regulatory sho...