Hai Phong Thermal Power (HND) Appoints Acting CEO After Former Director Prosecuted

Overview

Hai Phong Thermal Power Joint Stock Company (HOSE: HND) has appointed Mr. Tran Xuan Truong, previously Deputy General Director, as Acting General Director effective June 1, 2026. This follows the prosecution and detention of former General Director Duong Son Ba on charges of forging documents. The company is also linked to a broader environmental monitoring scandal involving multiple industrial facilities.

Key Facts

• Former General Director Duong Son Ba was prosecuted and detained on May 21, 2026, for “forging documents of agencies and organizations.”
• Mr. Tran Xuan Truong, born 1976, holds a degree in Thermal Engineering and Business Administration, joined HND in 2008.
• The Board of Directors appointed Chairman Ta Cong Hoan as the legal representative effective May 21, 2026.
• HND is implicated in an environmental monitoring scandal where emissions and wastewater data were allegedly tampered to show compliance.
• HND targets 2026 electricity output of 6.88 billion kWh (+15.4% YoY), revenue of VND 10,620 billion (+9%), and pretax profit of VND 576 billion (+51% YoY).
• The company plans a 3% cash dividend for 2026, equivalent to VND 150 billion.
• HND’s 2025 after-tax profit rose 32% YoY to VND 83 billion; equity stood at VND 5,980 billion as of end-2025.
• The annual general meeting for 2026 is scheduled for June 24, 2026.

What Happened

On May 21, 2026, HND received a notice from the Ministry of Public Security’s investigative police that former General Director Duong Son Ba had been prosecuted and detained for allegedly forging documents. In response, the Board of Directors immediately changed the legal representative to Chairman Ta Cong Hoan, effective the same day. Subsequently, on June 1, 2026, the Board appointed Deputy General Director Tran Xuan Truong as Acting General Director.

Mr. Truong has been with HND since 2008, serving in various operational roles including Deputy Head of Workshop 1 and Head of Workshop 1 before becoming Deputy General Director in January 2022. The leadership change comes as HND prepares for its 2026 annual general meeting on June 24.

Separately, HND has been named in a scandal involving environmental monitoring at multiple industrial facilities across Vietnam. Authorities allege that emissions and wastewater data from large plants, including Hai Phong Thermal Power, were manipulated to report safe levels despite exceeding permitted thresholds.

Market Context

HND shares closed at VND 10,300 on June 2, 2026, down 0.96% with low volume of 28,200 shares. The stock trades on HOSE with a market capitalization of approximately VND 5,000 billion. The company’s 2026 targets imply a P/E of roughly 8.7x based on the current price and 2026 profit guidance, which may attract value-oriented investors. However, the ongoing legal and environmental issues could weigh on sentiment.

Strategic Significance

The appointment of an internal candidate with deep operational experience suggests continuity in HND’s management despite the crisis. The company’s 2026 targets show confidence in operational recovery, with a 51% profit growth forecast. However, the environmental monitoring scandal poses regulatory and reputational risks. If HND is found liable, it could face fines, remediation costs, or operational restrictions. The outcome of the investigation and any potential penalties will be critical for long-term earnings visibility.

What to Watch

• Outcome of the criminal investigation into former CEO Duong Son Ba and potential charges against the company.
• Regulatory findings and penalties related to the environmental monitoring scandal.
• HND’s 2026 annual general meeting on June 24 for shareholder approval of dividend and business plan.
• Q2 2026 earnings release to assess whether operational targets are on track.
• Any changes in coal prices or power purchase agreements affecting HND’s margins.