DGC Names 2 Board Candidates Amid Criminal Charges, 2026 Profit Target Down 49%

Overview

Duc Giang Chemicals (DGC) has announced two board candidates nominated by a shareholder group representing 20.34% of voting shares, led by Chairman Dao Huu Kha. The move follows the criminal prosecution of two board members for environmental and resource violations. The company also set a 2026 business plan with revenue of VND 10,100 billion and net profit of VND 1,600 billion, down 10% and 49% respectively from 2025.

Key Facts

• A shareholder group of 10 individuals holding over 77 million shares (20.34% of voting shares) nominated two candidates for DGC’s board for the remainder of the 2024–2029 term.
• Candidates: Do Van Dong (born 1989, chemical engineer, current Deputy Head of Projects) and Dao Duc Manh (born 1988, Master’s in Finance, current Head of Import-Export).
• Dong owns no DGC shares as of July 14, 2026; Manh holds 87,636 shares (0.02% of charter capital).
• The board will dismiss two members, Luu Bach Dat and Nguyen Quoc Trung, before electing replacements at the AGM on August 13, 2026.
• Dat was prosecuted for environmental pollution; Trung for violating resource exploration and extraction regulations.
• 2026 targets: consolidated revenue of VND 10,100 billion (down >10% YoY) and net profit of VND 1,600 billion (down 49% YoY).
• DGC plans to start production at the Nghi Son chemical plant in Q4/2026 and restructure several factories.

What Happened

Duc Giang Chemicals (DGC) received a written nomination from a shareholder group led by Chairman Dao Huu Kha to fill two board vacancies. The group, comprising 10 individuals with a combined 20.34% stake, proposed Do Van Dong and Dao Duc Manh as candidates for the remaining term of the 2024–2029 board. Dong, an engineer, has been with DGC since 2013 and currently serves as Deputy Head of Projects; Manh, a finance specialist, has led the import-export department since 2017.

The nominations come after the Ministry of Public Security’s investigation unit initiated criminal proceedings against two board members. Luu Bach Dat, board member and General Director, was charged with causing environmental pollution, while Nguyen Quoc Trung was charged with violating regulations on resource exploration and extraction. The AGM on August 13 will first dismiss these two members, then vote on the new candidates.

Market Context

DGC shares closed at VND 43,350 on August 6, 2026, on the HOSE. The stock has likely been under pressure due to the legal issues and the sharp profit decline forecast for 2026. The chemicals sector in Vietnam faces regulatory scrutiny, particularly around environmental compliance, which could affect investor sentiment. The 49% profit drop signals operational challenges beyond the legal overhang.

Strategic Significance

The board refresh is critical for DGC’s governance and operational continuity. The two internal candidates bring technical and financial expertise, but their lack of independent status may raise questions about board independence. The 2026 plan reflects a conservative outlook, with major investments in the Nghi Son plant and restructuring of underperforming assets. Long-term investors should assess whether the new leadership can navigate regulatory risks and execute the growth strategy, especially in high-purity chemicals and real estate projects.

What to Watch

• AGM on August 13, 2026: approval of new board members and 2026 plan.
• Q2 2026 earnings release: evidence of margin pressure and revenue trends.
• Legal developments: outcomes of criminal cases against former board members.
• Progress on Nghi Son plant commissioning in Q4/2026.
• Dividend payment of 80% cash (VND 8,000/share) for 2025, subject to shareholder approval.