Duc Giang Chemical Group Nominates New Board Members Amid Executive Indictments

The Duc Giang Chemical Group (DGC) is navigating a significant corporate governance challenge with the announcement of nominations for three new board members. This move comes just days before an extraordinary general meeting convened to address a shortfall in the board's composition, a situation arising from the indictment and detention of three key figures, including Chairman Dao Huu Huyen.

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The number of current board members is less than the minimum required by law.

The company's decision to nominate Dao Huu Kha, Nguyen Quoc Trung, and Pham Duy Tung is a direct response to legal requirements stipulated by Vietnam's corporate law. Following the indictment of Chairman Dao Huu Huyen, Vice Chairman Dao Huu Duy Anh, and board member Pham Van Hung, the remaining board members are legally obligated to ensure the board meets its minimum size. This situation highlights the critical importance of robust governance structures, especially in light of legal proceedings against top executives.

Among the nominated candidates, Dao Huu Kha, the younger brother of the indicted Chairman, stands out due to his substantial shareholding in DGC and his current role in project management. Nguyen Quoc Trung, an electronic engineer, has a long history with the company, rising from a worker to a project manager. Pham Duy Tung, the youngest nominee, currently heads a subsidiary focused on real estate and hospitality, indicating a potential strategic expansion or diversification focus for the group.

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The investigation agency of the Ministry of Public Security has issued a notice about the indictment of the case 'Environmental Pollution; Violations of regulations on research, exploration, and exploitation of resources; Violations of accounting regulations causing serious consequences' occurring at Duc Giang Chemical Group and related units.

From a Vietnamese perspective, this event underscores the complexities of corporate leadership and accountability within the country's rapidly evolving business environment. The indictments and subsequent board restructuring at DGC are not merely internal matters; they reflect broader concerns about corporate governance, transparency, and the rule of law. While international coverage might focus on the legal ramifications, Vietnamese media and stakeholders are likely to scrutinize the implications for the company's operational stability, future strategic direction, and the potential impact on investor confidence. The nominations themselves, particularly the inclusion of family members and individuals with diverse operational backgrounds, will be closely watched for signs of continuity, change, or potential internal power dynamics within the group.

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Based on the provisions of the Enterprise Law, the remaining 2 board members decided to convene an extraordinary general meeting of shareholders in 2026.