DGC Appoints New Chairman Dao Huu Kha, Brother of Former Chairman

Overview

Duc Giang Chemicals Group (DGC) has appointed Mr. Dao Huu Kha as the new Chairman of the Board of Directors for the 2024-2029 term, along with two new board members. Mr. Kha, the brother of former Chairman Dao Huu Huyen, holds a significant personal stake of 5.97% in DGC, valued at nearly VND 1,200 billion at current market prices. The leadership transition follows the legal issues of the former chairman and aims to ensure continuity in the company’s strategic direction.

Key Facts

• Mr. Dao Huu Kha (born 1970, Hung Yen) was appointed Chairman of DGC for the 2024-2029 term on May 9, 2024.
• Mr. Kha previously served as a project department officer at Duc Giang Lao Cai One Member LLC and held no senior leadership roles at DGC before this appointment.
• He is the younger brother of former Chairman Dao Huu Huyen.
• Mr. Kha personally owns 22.7 million DGC shares, equivalent to 5.97% of the company’s charter capital.
• At the current share price of VND 52,200, his stake is worth approximately VND 1,200 billion.
• His wife, Ms. Ngo Thi Ngoc Lan, holds 6.64% of DGC, valued at over VND 1,300 billion.
• Two other new board members were elected: Mr. Nguyen Quoc Trung and Mr. Pham Duy Tung.

What Happened

On May 9, 2024, Duc Giang Chemicals Group (DGC) announced a series of personnel decisions following an extraordinary general meeting of shareholders. Mr. Dao Huu Kha was elected Chairman of the Board of Directors for the 2024-2029 term. Prior to this, Mr. Kha had not held any leadership position at DGC and was relatively unknown, having worked as a project department officer at a subsidiary. He is the brother of former Chairman Dao Huu Huyen, who stepped down amid legal issues.

During the shareholder meeting, some investors expressed concerns about the new leadership’s capabilities and vision compared to the previous management. In response, CEO Luu Bach Dat stated that former Chairman Dao Huu Huyen had spent 20 years training and grooming a succession team, and that the new board members have 15-20 years of experience at the company. He emphasized that the new leadership will inherit the full vision and will of the former chairman, and that the company continues to operate normally and stably. Regarding allegations of asset losses and off-book revenue, Mr. Dat said the company awaits official conclusions from investigative authorities before making disclosures.

Market Context

DGC shares closed at VND 56,000 on April 15, 2026, down 1.07% with a trading volume of 332,600 shares. The stock trades on HOSE. The leadership change comes at a time when the chemicals sector is facing headwinds from global commodity price fluctuations and regulatory scrutiny. DGC’s market capitalization and investor sentiment may be influenced by the perceived stability and strategic direction of the new board.

Strategic Significance

The appointment of Mr. Dao Huu Kha, a family insider with a substantial personal stake, signals continuity in DGC’s strategic direction despite the legal troubles of the former chairman. The new board’s deep experience within the company (15-20 years) suggests operational stability. However, the lack of prior senior leadership experience among the new members raises questions about their ability to navigate complex regulatory and market challenges. The significant personal holdings of Mr. Kha and his wife align their interests with minority shareholders, potentially mitigating agency risks.

What to Watch

• Official conclusions from investigative authorities regarding asset losses and off-book revenue allegations.
• Q2 2024 earnings release for DGC to assess operational performance under new leadership.
• Any changes in dividend policy or capital allocation strategy announced by the new board.
• Share price and foreign ownership trends in the coming months as a gauge of investor confidence.
• Further disclosures on the strategic plan for the 2024-2029 term from the new Chairman.