Former Nguyen Kim Deputy Director Faces Trial for State Asset Mismanagement

Ho Chi Minh City's People's Court is scheduled to commence the trial of Pham Nhat Vinh, the former deputy general director of Nguyen Kim Company. Vinh faces charges related to 'violating regulations on the management and use of state assets, causing loss and waste.' His trial comes after a period of evading arrest warrants.

The case centers on a strategic partnership agreement between Nguyen Kim Company and Sadeco, a subsidiary of the state-owned Industrial Development Company of Tan Thuan (IPC). According to the indictment, Vinh allegedly played a key role in a decision that significantly undervalued Sadeco's shares when Nguyen Kim was brought in as a strategic shareholder. This decision allegedly bypassed proper valuation procedures and resulted in substantial losses for the state.

Prosecutors allege that despite Sadeco's share value being assessed at over 162,000 VND per share, the company agreed to issue shares to Nguyen Kim at a price of 40,000 VND. This discrepancy, involving the issuance of 9 million shares, is estimated to have caused Sadeco a loss exceeding 669 billion VND. The investigation into malfeasance at IPC and Sadeco has already led to charges against 20 other individuals.

Vinh's flight from justice and subsequent capture underscore the seriousness of the charges. The trial is expected to shed light on the complex financial dealings and alleged mismanagement of state assets within these companies, highlighting a critical issue of accountability in state-linked enterprises in Vietnam.