DRC Removes CEO Le Hoang Khanh Nhut After Embezzlement Charges

Overview

Cao su Đà Nẵng (DRC, HOSE) has dismissed General Director Le Hoang Khanh Nhut after the Đà Nẵng People’s Procuracy approved his prosecution for asset embezzlement, according to a company disclosure. The board named board member and Deputy General Director Van Trung Tam to head the executive board and appointed Chairman Nguyen Xuan Bac as legal representative, while state parent Vinachem reassigned its capital-representation mandate at DRC.

Key Facts

• The Đà Nẵng People’s Procuracy approved the decision to prosecute Le Hoang Khanh Nhut, a board member and General Director, for asset embezzlement, per the company announcement.
• DRC dismissed Nhut from the General Director role effective 16/10/2026.
• Van Trung Tam, a board member and Deputy General Director, was appointed to head the Ban điều hành and carry out General Director duties until a replacement is named.
• Chairman Nguyen Xuan Bac was appointed legal representative of the company until a replacement decision is made.
• Vinachem withdrew its capital-representation assignment at DRC from Nhut and raised Bac’s represented share from 10.51% to 20.51% of DRC capital, effective 16/10/2026.
• Nhut, born 1974, holds a master’s degree in mechanical engineering and had served as DRC General Director since November 2020, with reappointment from November 2025.
• Tam, born 1977, is a chemical engineer and was reappointed Deputy General Director of DRC from February 2026.

What Happened

In a disclosure to the market, Cao su Đà Nẵng said it received the Đà Nẵng People’s Procuracy’s approval of the investigative security agency’s decision to prosecute Le Hoang Khanh Nhut, who held the dual roles of board member and General Director, on charges of asset embezzlement. The company did not disclose the alleged amount, the case file, or any further details of the investigation in the announcement.

Acting on the decision, the board removed Nhut as General Director effective 16/10/2026 and assigned Van Trung Tam, a board member and Deputy General Director, to lead the executive board and discharge the General Director’s duties until a permanent replacement is appointed. The board also designated Chairman Nguyen Xuan Bac as the company’s legal representative. Separately, state chemicals group Vinachem issued a document ending Nhut’s assignment to represent its capital at DRC and adjusted Bac’s represented stake from 10.51% to 20.51% of charter capital from the same date.

Market Context

DRC trades on the Ho Chi Minh City Stock Exchange (HOSE) and closed at 9,880 on 17/10/2026, the session after the leadership change was disclosed. The stock sits in the rubber and materials segment of the automobiles and parts supply chain, where DRC is a domestic tire producer with state-linked ownership through Vinachem. A criminal case against a sitting chief executive is a governance event for a mid-cap HOSE name, and the price reference above is a single-session snapshot rather than a measure of the market’s full reaction.

Strategic Significance

The immediate question for long-term holders is continuity rather than strategy: DRC has placed day-to-day operations with a chemical engineer who was only reappointed Deputy General Director in February 2026, and legal authority with the chairman, leaving the General Director seat formally vacant. Vinachem’s decision to concentrate its 20.51% representation mandate in the chairman keeps state shareholder oversight in a single hand during the transition, which reduces the risk of a representation vacuum but also concentrates governance responsibility. The embezzlement charge, if it proceeds, could expose DRC to reputational and counterparty scrutiny in export and OEM tire channels, and the absence of disclosed case details means the financial exposure remains unquantified.

What to Watch

• The appointment of a permanent General Director and whether the board fills the vacant board seat held by Nhut.
• Formal charges, case timeline, or asset-value disclosures from the Đà Nẵng investigative authorities.
• DRC’s next periodic financial disclosure for any mention of provisions, related-party transactions, or internal control changes.
• Vinachem filings on its ownership and representation at DRC, including any further stake adjustment.
• Trading volume and foreign-ownership data for DRC on HOSE in the sessions following the 17/10/2026 close of 9,880.