Shares of VPG, a commercial import-export company, plummeted to the floor for the second consecutive session since the market opened on June 4th, settling at the 10,400 VND per share mark. While the matched volume was a mere 340,000 shares, the sell orders piled up, reaching nearly 6 million units at 10:45 am.
VPG shares hit the floor during the morning session of June 4th.
VPG shares continuously dropped to the daily limit following the news of the Chairman and General Director of the company being prosecuted.
Specifically, on June 2nd, based on the investigation results, the Police Department for Corruption, Economic, and Smuggling Crimes Investigation under the Ministry of Public Security (the Investigation Agency of the Ministry of Public Security) decided to initiate a criminal case for “Violation of regulations on the management and use of state assets, bribery, and brokerage of bribes” against eight defendants, including the Vietnam-China Mineral and Metallurgy Company (VTM) and related units.
From left to right, top to bottom: Bui Thanh Binh, Nguyen Van Binh, Ngo Tien Cuong, Nguyen Duy Nghiep, Nguyen Xuan Tot, Nguyen Van Duc, Le Xuan Dinh, and Nguyen Truong Giang. (Photo: Ministry of Public Security)
Among them, Nguyen Van Binh, Chairman of the Board of VPG, and Nguyen Van Duc, General Director of VPG, were both indicted on charges of bribery under Article 364 of the Penal Code. Other individuals, such as Ngo Tien Cuong (Director of Tien Dai Phat), Nguyen Duy Nghiep (Director of Nong San An Binh), and Nguyen Xuan Tot (Director of Trung Thanh Thai Nguyen), were also indicted on the same charges of bribery.
Additionally, Bui Thanh Binh, General Director of Vietnam-China Company, was indicted on two charges: violation of regulations on the management and use of state assets, and bribery. The investigation agency also initiated proceedings against Le Xuan Dinh for brokerage of bribes and Nguyen Truong Giang, former Head of Quality Management and Metrology of Vietnam-China, for receiving bribes.
The prosecution announcement came just a day after Nguyen Van Binh submitted his resignation as Chairman of the Board for personal reasons. The Board of Directors of VPG approved the resignation and appointed Le Thi Thanh Le, a member of the Board of Directors and Mr. Binh’s wife, as Chairman of the Board and legal representative from June 3rd.
Nevertheless, Mr. Binh remains a member of the Board of Directors and currently holds nearly 26% of VPG’s capital, while Ms. Le owns approximately 4.5%.
Regarding the financial results for the first quarter of 2025, Viet Phat recorded a remarkable growth. Net revenue reached VND 4,625 billion, a 43% increase compared to the same period last year, and after-tax profit reached nearly VND 21 billion, almost 12 times higher. This surge was attributed to the significant increase in real estate and financial revenue.
Previously, Vietnam’s audited consolidated financial statements for 2024 reported a revenue of VND 16,257 billion, a 156.5% increase compared to 2023. The enterprise achieved an after-tax profit of VND 108.6 billion, a surge of 461.5%. Regarding this dramatic increase of over 400%, Vietnam attributed it to real estate revenue, which was absent in 2023. Additionally, the gross profit from iron ore sales increased by 672.8%.
Established in 2008, Vietnam initially focused on domestic transportation before expanding into minerals, real estate, and construction. The enterprise currently invests in numerous housing projects in Hai Phong and has collaborated with AeonMall Vietnam on commercial center projects in Hai Phong, Bien Hoa, and Ha Long.
