DGC Chairman Prosecuted: Luu Bach Dat Takes Helm at TSB, Joins PAT Board

Overview

The chairman of Duc Giang Chemicals Group (DGC) has been prosecuted, leading to a leadership reshuffle across the group’s ecosystem, including Tibaco (TSB) and Phosphorus Apatit Vietnam (PAT). Luu Bach Dat, a 19-year veteran of the group, has been appointed chairman of TSB and elected to PAT’s board. The changes follow the prosecution of former DGC chairman Dao Huu Huyen, with his brother Dao Huu Kha taking over as DGC chairman.

Key Facts

• Former DGC chairman Dao Huu Huyen was prosecuted, prompting leadership changes at DGC, TSB, and PAT.
• Luu Bach Dat, born 1983, has 19 years at Duc Giang, starting as an engineer in May 2007.
• Dat was elected Chairman of TSB (Tibaco) for the 2023-2028 term, replacing Huyen.
• Dat was also elected to PAT’s board of directors for the 2024-2029 term.
• Dao Huu Kha, Huyen’s brother, is now Chairman of DGC.
• DGC shares (HOSE) closed at VND 48,800 on May 20, 2026, down 2.20%.
• TSB shares (HNX) closed at VND 19,400, up 0.52%; PAT shares (UPCOM) closed at VND 68,200, down 1.30%.

What Happened

On May 20, 2026, the board of Tibaco (TSB) approved the appointment of Luu Bach Dat as Chairman of the Board for the 2023-2028 term, replacing Dao Huu Huyen, who was prosecuted. Dat currently serves as a board member and General Director of DGC, and also as Director of Duc Giang Nghi Son One Member LLC. He began his career at Duc Giang in 2007 as an engineer and has held various leadership roles, including Chairman of Lao Cai Fertilizer and Chemicals JSC (LFC) and Deputy Director of Duc Giang Lao Cai One Member LLC.

Separately, PAT held an extraordinary general meeting to restructure its board following the prosecution. Dat was elected to PAT’s board for the 2024-2029 term. The group’s ecosystem includes DGC, TSB, PAT, and other entities, with DGC controlling a significant share of global yellow phosphorus production.

Market Context

DGC shares fell 2.20% to VND 48,800 on May 20, 2026, with high volume of 5.14 million shares, reflecting market uncertainty following the prosecution. TSB shares edged up 0.52% to VND 19,400, while PAT shares declined 1.30% to VND 68,200. The leadership changes come amid ongoing regulatory scrutiny and a trading restriction on DGC shares starting May 26, 2026. The group’s dominance in phosphorus chemicals (about one-third of global yellow phosphorus) makes its governance stability critical for investors.

Strategic Significance

The appointment of Luu Bach Dat, a long-serving insider, signals continuity in operations despite the legal turmoil. Dat’s deep operational experience across multiple group companies suggests a focus on maintaining production and supply chains. However, the prosecution of the former chairman and the family-led succession (brother taking over DGC) raise governance concerns. The group’s ability to navigate legal challenges while preserving its market position in phosphorus chemicals will be key. The reshuffle may also affect planned expansion or capital allocation strategies.

What to Watch

• Outcome of the prosecution against former chairman Dao Huu Huyen and any further legal actions.
• DGC’s audited 2025 financial statements, expected to be completed in Q2 2026.
• Trading restriction on DGC shares from May 26, 2026, and its impact on liquidity.
• Any changes in DGC’s dividend policy or capital raising plans.
• PAT’s and TSB’s operational performance under new leadership in the coming quarters.