The Final Word from the Former HOSE Leadership: A Helping Hand for Mr. Trinh Van Quyet?

Suggestions for improvements in the securities industry

On July 30, the Hanoi People’s Court jury deliberated for an extended period following a week of questioning and prosecuting 50 defendants in a case of “fraudulent appropriation of property and stock market manipulation” involving FLC Group.

The day before, the court allowed the defendants to have their final say. Mr. Trinh Van Quyet, former chairman of FLC Group, and his subordinates pleaded with the jury to consider reducing their sentences so they could return to their families and fulfill their filial duties, as well as continue to contribute to society.

The seven defendants, who were former leaders of the Ho Chi Minh City Stock Exchange (HOSE), the State Securities Commission of Vietnam, and the Vietnam Securities Depository Center, expressed their remorse in their final statements.

Specifically, Tran Dac Sinh, former chairman of HOSE, apologized to the Party and the State for failing in his duties and to investors in his nearly 10-minute statement.

Mr. Sinh mentioned that he had been assigned to lead the country’s largest centralized stock market since the early 2000s. His goal was to develop a robust, equitable market, but just before his retirement, a “fraud virus slipped through all the doors,” ultimately leading to legal violations.

Over 20 years of dedication to the securities industry, Mr. Sinh takes pride in the market’s growth, contributing a significant percentage to the country’s GDP and earning the respect of the international community.

According to him, the incident involving FLC was a personal mistake and left many lessons. He never imagined such a horrifying scam with such deep intentions could occur.

The former HOSE chairman hopes for improvements to ensure a transparent and efficient stock market in the future. Additionally, he suggested several improvements to policies and mechanisms to provide peace of mind for those working in the securities industry after him.

Specifically, he suggested that the Enterprise Law reconsider the issue of managing the chartered capital of enterprises. He also recommended that the Stock Exchange be allowed to hire an auditing firm when suspicious and that the operations of auditing firms be tightly controlled with a robust legal framework to prevent violations.

Finally, Mr. Sinh accepted the court’s decision and requested that the jury consider the balance of merits and demerits and reduce the sentences for other officials.

Inadequate understanding

Meanwhile, Le Hai Tra, former deputy general director of HoSE, also shared his concerns about the current legal framework in the context of the increasingly complex stock market.

He emphasized that protecting the legitimate interests of investors is the “supreme requirement” in the securities industry. The Enterprise Law and the Securities Law have established barriers and checkpoints to safeguard those interests, but due to excessive trust in this system, there has been a lack of caution.

The case has caused him sorrow and regret, and the violations have damaged the reputation of the Ho Chi Minh City Stock Exchange, which he has diligently built for over 20 years.

The former general director of HOSE hopes that the existing shortcomings in the stock market will be promptly addressed to minimize unnecessary risks for future market managers and operators.

In his final statement, Le Cong Dien, former head of the Public Company Supervision Department of the State Securities Commission of Vietnam, acknowledged that the mistake was a regrettable lesson. He did not shirk responsibility and asked the court to consider the context of the crime, stating that there was no personal gain involved.

The remaining defendants from HOSE and the Vietnam Securities Depository Center also pleaded for leniency due to their difficult circumstances and inadequate understanding.