DGC Board Overhaul: New Members Elected After Former Chairman's Criminal Probe

Overview

Duc Giang Chemicals Group (DGC) held an extraordinary general meeting on May 8, 2026, to remove three board members who are under criminal investigation by the Ministry of Public Security. The meeting elected three new members, including the brother of former chairman Dao Huu Huyen. The new board will continue the former chairman’s strategic direction, but mining operations at two sites remain suspended, forcing DGC to import apatite ore at higher cost.

Key Facts

• Extraordinary shareholder meeting held on May 8, 2026.
• Three board members removed: Dao Huu Huyen, Dao Huu Duy Anh, and Pham Van Hung, all under criminal indictment.
• Three new board members elected: Dao Huu Kha (brother of former chairman), Nguyen Quoc Trung, and Pham Duy Tung.
• Dao Huu Kha holds nearly 22.7 million DGC shares, equivalent to about 6% of capital.
• Mining at sites 25 and 19B is suspended pending investigation results.
• DGC is importing apatite from Egypt and Pakistan, increasing raw material costs.
• The company will not cover personal legal costs of indicted individuals unless the company is directly affected.

What Happened

Duc Giang Chemicals Group (DGC) convened an extraordinary shareholder meeting on the morning of May 8, 2026. The primary purpose was to approve the removal of three board members—Dao Huu Huyen, Dao Huu Duy Anh, and Pham Van Hung—who are under criminal prosecution by the Police Investigation Agency of the Ministry of Public Security. Simultaneously, the meeting elected three new board members for the remainder of the 2024–2029 term.

The three nominees were Dao Huu Kha (born 1970), brother of former chairman Dao Huu Huyen, who holds a bachelor’s degree in Business Administration and has been with the company since 2008; Nguyen Quoc Trung; and Pham Duy Tung, both directors of DGC subsidiaries. CEO Luu Bach Dat stated that the new board will inherit and continue the will and direction of the former chairman, focusing on chemical development, deep product research, and value enhancement.

Regarding the legal issues, CEO Dat emphasized that the personal violations are the responsibility of the individuals and their families, and the company will not cover those costs unless the investigation concludes that the company was directly affected. He also confirmed that mining at two sites (25 and 19B) is halted pending investigation results, and DGC is now purchasing apatite from other domestic miners and importing from Egypt and Pakistan, which raises raw material costs and impacts profitability.

Market Context

DGC shares closed at VND 56 on April 15, 2026, down 1.07% with volume of 332,600 shares. The stock has been under pressure since the criminal investigation became public. DGC is listed on HOSE and is a leading chemical producer in Vietnam, with significant exposure to phosphate and apatite mining. The suspension of mining operations at key sites directly affects its cost structure and margins, while the leadership transition introduces governance uncertainty.

Strategic Significance

The board overhaul ensures continuity of the former chairman’s strategy, but the ongoing criminal probe and mining suspension create near-term operational headwinds. DGC’s reliance on imported raw materials will compress margins until mining resumes. The appointment of the former chairman’s brother signals family control remains intact, but the company’s ability to navigate regulatory and legal challenges will be critical. Long-term investors should monitor the investigation’s outcome and the timeline for resuming mining operations.

What to Watch

• Conclusion of the criminal investigation and any impact on DGC’s operations or financials.
• Resumption of mining at sites 25 and 19B and related timeline.
• Q2 2026 earnings report to assess margin impact from higher raw material costs.
• Any further changes in board composition or management.
• Updates on the company’s legal compliance and governance improvements.