Duc Giang Chemicals (DGC) Appoints New Chairman After Former Leader Detained

Overview

Duc Giang Chemicals Group (DGC) has appointed Mr. Dao Huu Kha as Chairman of the Board of Directors following an extraordinary shareholder meeting on May 8. The leadership change comes nearly two months after former Chairman Dao Huu Huyen and his son, Vice Chairman Dao Huu Duy Anh, were detained for accounting and environmental violations. The new board, composed of executives with 15-20 years at the company, has committed to remedying legal gaps while ensuring business continuity.

Key Facts

• Mr. Dao Huu Kha was appointed Chairman of DGC effective May 8, 2025.
• Mr. Kha holds a bachelor’s degree in Business Administration and joined the company in 2008.
• He is a major shareholder with approximately 6% ownership, equivalent to nearly 22.7 million shares.
• Former Chairman Dao Huu Huyen remains the largest shareholder with 18.4% capital; related parties hold over 45%.
• DGC reported 2025 net revenue of VND 11,266 billion (+14% YoY) and after-tax profit of VND 3,188 billion (+3% YoY), exceeding the annual plan.
• Total assets reached VND 19,550 billion, nearly 10 times higher than a decade ago.
• DGC has not yet submitted its 2025 audited financial statements, nearly 40 days overdue, leading to its stock being placed under control and removed from the VN30 index.

What Happened

Duc Giang Chemicals Group (DGC) held an extraordinary shareholder meeting on May 8 to elect a new Chairman of the Board of Directors. Mr. Dao Huu Kha, a long-time employee and major shareholder, was appointed to the role. Immediately after assuming office, Mr. Kha signed decisions to appoint chairmen for six subsidiaries operating in chemicals, real estate, and sports.

The leadership restructuring follows the detention of former Chairman Dao Huu Huyen and his son, Vice Chairman Dao Huu Duy Anh, in March 2025. They were arrested for violations related to accounting regulations, resource exploitation, and environmental pollution. At the meeting, Mr. Luu Bach Dat, Board member and General Director, stated that the new board is committed to fixing legal loopholes to prevent similar issues. He emphasized that the new leaders will inherit the vision and will of the former chairman, and that the company continues to operate normally and stably.

Market Context

DGC shares closed at VND 56,000 on April 15, 2026, down 1.07% with low volume of 332,600 shares. The stock has been under control on HOSE due to the delayed submission of the 2025 audited financial report, which is nearly 40 days past the regulatory deadline. As a result, DGC was removed from the VN30 index. The company’s fundamentals remain strong, with 2025 revenue and profit exceeding targets, but the legal and governance uncertainties have weighed on investor sentiment.

Strategic Significance

The appointment of Mr. Dao Huu Kha, a veteran insider with a 6% stake, signals continuity and stability in DGC’s management. The new board’s commitment to addressing legal gaps is critical for restoring investor confidence and potentially lifting the stock from its controlled status. However, the fact that former Chairman Huyen and related parties still control over 45% of shares raises questions about governance independence. The company’s ability to submit audited financials and resolve regulatory issues will be key to normalizing trading and regaining index inclusion.

What to Watch

• Submission of the 2025 audited financial report and subsequent lifting of the stock’s controlled status.
• Any further legal developments involving former Chairman Huyen or other executives.
• Changes in shareholding structure, particularly any reduction in the stake held by Huyen and related parties.
• Q1 2026 earnings release to assess operational momentum under new leadership.
• Potential index rebalancing decisions by VN30 and other indices regarding DGC’s inclusion.