On May 13th, the trial for the rare earth smuggling case continued with the examination phase. According to the indictment, from 2019 to 2023, Mr. Luu Anh Tuan, Chairman of the Board of Directors of Vietnam Rare Earth Company, allegedly aided Mr. Doan Van Huan, Chairman of Thai Duong Company, in concealing revenue from rare earth sales, keeping over VND 20 billion off the books, resulting in a tax loss of more than VND 7 billion.
Ms. Truong Thi Hien, accountant of Vietnam Rare Earth Company, and Mr. Tuan were accused of helping Mr. Huan conceal over VND 9 billion in revenue as reflected in two invoices from 2020 and 2021, causing a tax loss of more than VND 3 billion.
Mr. Tuan was also charged with instructing employees to obtain 15 invoices from chemical supply companies, overstating the amount of input materials beyond the actual purchase value by over VND 16 billion. This was done to falsify accounting records, violating accounting regulations and causing a loss of over VND 4 billion in state revenue.
Mr. Luu Anh Tuan. Photo: VD |
The indictment further accused the Chairman of Vietnam Rare Earth Company of instructing employees to use import and export documentation to legalize the illegal export of 473,980 kg of ‘Total Rare Earth Oxides’, valued at over VND 379 billion. These oxides were produced from rare earth materials with a TREO concentration of 18-20% purchased from Thai Duong Company.
In his defense, Mr. Tuan stated that there were six shareholders in the company, and he held 29% of the shares and was in charge of operations due to his expertise in rare earth elements. He claimed to be in the business of manufacturing rare earth products for export through official channels, with electronic customs declarations. “The Party and the state encourage the production of rare earth elements, and I am currently working on a state-level research project,” Mr. Tuan stated.
According to the Chairman of Vietnam Rare Earth Company, when buying and selling rare earth elements with Mr. Doan Van Huan, Chairman of Thai Duong Company, Mr. Huan requested that he issue invoices for amounts lower than the actual value, to which he had to agree.
Mr. Tuan admitted to the charge of buying and selling goods without issuing sufficient invoices. Regarding the amount of rare earth elements not covered by invoices, he argued that he did not need to legitimize the input because he was working on a state-level research project on rare earth production.
“I hope the court will consider that I am working on a state-level research project and have not benefited financially. I am fulfilling scientific research and innovation obligations,” pleaded Mr. Tuan.
In response to Mr. Tuan’s statement, Judge Tran Nam Ha asked if there was any documentation proving that he had been assigned a state-level research project on rare earth production. Mr. Tuan replied that he would ask his lawyer to provide the necessary documents to the court. He further asserted that he had invested VND 80 billion in this research project and received VND 10 billion in funding from the state for scientific research purposes.
Regarding the charge of smuggling, Mr. Tuan admitted to the indictment but felt there were still some discrepancies. He explained that electronic customs declarations must be accurate, and these very declarations serve as evidence that he had not committed any violations.
During the trial, Ms. Truong Thi Hien admitted that the invoices from Thai Duong Company did not reflect the actual quantity of goods. When she contacted Mr. Tuan about this, he instructed her to call Mr. Huan, who claimed to have already discussed the matter with Mr. Tuan.
Meanwhile, Ms. Do Hanh Huong expressed her concern about being charged as an accomplice to Mr. Tuan in the smuggling offense, as she had not directly participated in the customs declaration process.
T. Nhung
– 12:10 13/05/2025
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