Sneaked in shoes: How nearly 100 kg of gold was smuggled from China into Vietnam

According to a recent investigation report by the Ministry of Public Security's Investigation Agency, police have completed their case and recommended prosecuting Tran Thi Hoan, owner of Hoan Hue Jewelry Store in Lao Cai Province, along with seven others, on charges of "smuggling."

In the same case, three executives from Hanoi-based Vietnam Gold Investment and Trading Corporation—chairwoman Tran Nhu My, vice CEO Phung Thi Quyet, and head accountant Nguyen Thi Hop—face charges of "violations of accounting regulations causing serious consequences."

Gold bars hidden in shoes to be smuggled from China to Vietnam through Lao Cai Border Gate. Photo by Linh Dan

Investigators said that in September last year, a Chinese woman known as "Ba Beo" ("Fat Lady") visited Hoan's shop in Lao Cai to sell gold and exchanged contact information. She later offered Hoan 99.99% pure gold bars sourced from China at prices lower than the Vietnamese market. Seeing an opportunity, Hoan agreed and began planning to smuggle the gold into Vietnam.

The two coordinated quantities, prices, and delivery methods via WeChat. Ba Beo oversaw the smuggling operation, hiring a Vietnamese worker in Yunnan Province, China, to transport the gold across the border.

Aware that Lao Cai International Border Gate officers did not inspect travelers' bodies or require them to remove shoes, Ba Beo instructed the courier to hide one-kilogram gold bars inside his shoes. Each successful delivery earned the courier VND250,000 (US$9.50) per kilogram.

Once across the border, the courier delivered the gold to Hoan Hue store via a back entrance. At the shop, Hoan's staff inspected, weighed, and photographed the gold, then sent the information to Hoan via Zalo. If the bars had foreign markings, they would be erased using a blowtorch. Hoan paid the courier either in cash or via designated bank accounts funded by employees or buyers.

Hoan and Ba Beo are accused of smuggling 97.3 kilograms of gold worth VND208 billion from China into Vietnam between September and November.

Authorities also allege that Hoan partnered with Pham Tuan Hai, former director of Thang Long Trading and Services Co. in Hanoi, to purchase additional smuggled gold from a Chinese supplier named Zhou. Between September and December, Hai reportedly smuggled 424 kg of gold worth VND943 billion and sold it to Hoan.

The suspects in a gold smuggling case from China to Vietnam, with Tran Thi Hoan is the far right of the second row. Photo by police

In total, Hoan is accused of smuggling 564 kilograms of gold, valued at VND1.208 trillion (approximately US$47.5 million). The identities of Ba Beo and Zhou have not yet been confirmed.

After the gold was smuggled in, Hoan sold it to multiple customers in Hanoi, who claimed they were unaware of its illegal origins.

Hoan told police she tracked only purchase quantities and prices, not sales prices or how much gold was used for jewelry production. She claimed to have earned VND100 million in profit from deals with Ba Beo but suffered losses in transactions with Hai due to falling gold prices.

Hai has denied involvement, though WeChat group chats indicate he was responsible for smuggling 449 kg of gold worth over VND1.151 trillion.

Executives of Vietnam Gold Investment and Trading Corporation, My and Quyet, reportedly sold the smuggled gold to numerous clients, often without issuing invoices or receipts, resulting in tax losses exceeding VND5 billion.

An inspection by Lao Cai customs confirmed that officers at the border only check travelers' luggage and do not conduct body searches unless there is strong evidence of smuggling.

No body scanners are in use. Investigators found no evidence of misconduct or collusion by customs or border guard officers in the case.