VPG Shares Plummet as Leadership Faces Legal Troubles
VPG shares closed at VND 8,380 per share on June 9th, marking a 6.99% decrease from the previous session. The trading volume reached 516,300 units, making it the fifth consecutive session of sharp declines for this stock.
Prior to this, VPG shares had already witnessed significant drops in the sessions from June 3rd to June 6th, with losses ranging from 6.69% to 6.92%. Cumulatively, after this 5-session “free fall,” the stock price has evaporated by 26.11%, equivalent to a decrease of VND 3,120 per share.
As a consequence, the market capitalization of Vietnam Export Import Investment and Trading Joint Stock Company (VPG) took a hit, plummeting to just VND 740.9 billion.
VPG shares suffer a 5-session losing streak, with market capitalization shrinking by over 26% following leadership changes. (Source: Cafef)
The sell-off of VPG shares came on the heels of legal woes involving the company’s top executives. Specifically, on June 2nd, the Police Agency for Investigation of Crimes of Corruption, Economy, and Smuggling – Ministry of Public Security initiated a criminal case involving charges of “Violation of regulations on the management and use of state assets, leading to waste and loss; Bribery; Receiving bribes; and Brokerage of bribes.” The case pertains to Vietnam-China Mineral and Metallurgy JSC and related units.
Among the eight accused individuals, Mr. Nguyen Van Binh, Chairman of VPG’s Board of Directors, and Mr. Nguyen Van Duc, CEO of VPG, were both charged with “Offering bribes” under Article 364 of the Penal Code. Other individuals, including Mr. Ngo Tien Cuong (Director of Tien Dai Phat), Mr. Nguyen Duy Nghiep (Director of Nong San An Binh), and Mr. Nguyen Xuan Tot (Director of Trung Thanh Thai Nguyen), were also prosecuted for the same offense.
In the aftermath of these developments, VPG proceeded to make changes to its senior management. Specifically, Mr. Nguyen Van Binh was relieved of his duties as Chairman, and Ms. Le Thi Thanh Le – Mr. Binh’s wife and currently a member of the Board of Directors and Deputy General Director – was appointed as the new Chairwoman for the 2022-2027 term, effective June 3, 2025.
Viet Phat is a prominent enterprise in the field of iron ore and metallurgical coke supply, providing essential raw materials for the domestic metallurgy industry. In 2024, the company recorded impressive revenue of VND 16,300 billion but posted a modest profit of only VND 109 billion.
In the first quarter of 2025, Viet Phat reported improved business results, with net revenue reaching VND 4,625 billion, a 43% increase compared to the same period last year. Profit after tax amounted to nearly VND 21 billion, almost twelve times higher than the previous year, largely attributed to substantial gains from real estate and financial activities.
Despite the positive financial indicators, the significant legal and leadership upheavals have rattled investors, leading to a free fall in VPG’s stock price on the stock exchange.
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