DGC CEO Luu Bach Dat Prosecuted; Duc Giang Chemical to Remove Board Members

Overview

Duc Giang Chemical Group (DGC) will propose removing two board members, including CEO Luu Bach Dat, at its upcoming annual general meeting on August 13, 2026. Both executives have been formally prosecuted by the Ministry of Public Security for environmental pollution and resource exploitation violations. The company’s H1 2026 financial results show a 49% drop in net profit, reflecting operational and governance challenges.

Key Facts

• DGC will propose removing CEO Luu Bach Dat and board member Nguyen Quoc Trung at the AGM on August 13, 2026.
• Luu Bach Dat was prosecuted for environmental pollution; Nguyen Quoc Trung for violating resource exploration and extraction regulations.
• Deputy CEO Phung Trong Tu was also prosecuted for environmental pollution; all three are under travel restrictions.
• Former Chairman Dao Huu Huyen and former Vice Chairman Dao Huu Duy Anh were arrested in March 2026 on multiple charges including accounting violations and resource exploitation.
• H1 2026 revenue was VND 4,540 billion, down 20.4% year-on-year.
• H1 2026 net profit was VND 871 billion, down 49% from H1 2025.
• DGC shares closed at VND 36,000 on July 27, 2026.

What Happened

Duc Giang Chemical Group (DGC) has added documents to its agenda for the upcoming annual general meeting on August 13, 2026, in Hanoi. The key item is the removal of two board members: Luu Bach Dat, who serves as both board member and CEO, and Nguyen Quoc Trung, a board member. Both have been formally charged by the Investigation Police Department of the Ministry of Public Security. The company also plans to elect two new board members to fill the remaining term of 2024-2029.

On July 23, 2026, DGC disclosed that it had received notification of the prosecution of three senior executives. Luu Bach Dat was charged with causing environmental pollution, Nguyen Quoc Trung with violating regulations on resource exploration and extraction, and Deputy CEO Phung Trong Tu with causing environmental pollution. All three are subject to a ban from leaving their place of residence. This follows the March 2026 arrest of former Chairman Dao Huu Huyen and former Vice Chairman Dao Huu Duy Anh on multiple charges, including accounting violations and resource exploitation.

Market Context

DGC shares closed at VND 36,000 on July 27, 2026, on the HOSE exchange. The stock has been under pressure since the initial arrests in March 2026, with the ongoing legal turmoil compounding weak operational performance. The chemicals sector in Vietnam has faced increased regulatory scrutiny, and DGC’s governance issues may further weigh on investor sentiment. The 49% profit decline in H1 2026 reflects both the legal disruptions and broader industry headwinds.

Strategic Significance

The prosecution of top executives at DGC represents a severe governance crisis for the company. The removal of the CEO and a board member signals an attempt to stabilize management, but the legal risks remain elevated. Long-term investors should assess the company’s ability to maintain operations and compliance amid ongoing investigations. The financial deterioration in H1 2026 underscores the operational impact of the leadership vacuum and potential disruptions to production and sales. The outcome of the AGM and the appointment of new board members will be critical for restoring investor confidence.

What to Watch

• AGM on August 13, 2026, and the election of new board members.
• Any additional legal actions or settlements related to environmental and resource violations.
• Q3 2026 earnings release for signs of operational recovery or further decline.
• Changes in foreign ownership limits or investor sentiment as reflected in trading volumes.
• Regulatory updates from the Ministry of Public Security or the State Securities Commission regarding DGC’s compliance.