PC1 Prosecuted: 48 Defendants Charged in 500kV Circuit-3 Bidding Case

Overview

Vietnam’s Ministry of Public Security has prosecuted 48 defendants in an expanded investigation into bidding, accounting and bribery violations at National Power Transmission Corporation (EVNNPT) and Tập đoàn PC1 related to the 500kV circuit-3 transmission line project. The case directly names PC1, a HOSE-listed construction and materials group, among 13 companies identified as involved. Investigators have seized cash and frozen securities accounts, raising near-term uncertainty over the contractor’s project pipeline and balance sheet.

Key Facts

• 48 defendants prosecuted on charges including violations of bidding regulations causing serious consequences, accounting violations, giving and receiving bribes, and asset embezzlement.
• The 500kV circuit-3 line is owned by EVNNPT, which is named alongside PC1 and 11 other entities.
• 13 companies are identified as involved, including EVNNPT, the Northern and Central Power Project Management Boards, PC1, Đông Anh Steel Pole Manufacturing, Tấn Phát Minerals, Sông Đà 11, Electricity Construction No. 4, and Power Construction Consulting JSCs 1 through 4.
• Authorities seized VND 45.8B and USD 1M in cash.
• Securities accounts worth approximately VND 1,756B were suspended or frozen.
• The announcement was made at a Ministry of Public Security press conference on 1 October by Major General Trần Văn Toản, Deputy Chief of Office of the Police Investigation Agency.
• PC1 shares closed at 20,200 on 1 October 2026 on HOSE.

What Happened

At a press conference on 1 October, Major General Trần Văn Toản, Deputy Chief of Office of the Police Investigation Agency under the Ministry of Public Security, said the investigation into EVNNPT, Tập đoàn PC1 and related units has now reached 48 prosecuted defendants. The charges span violations of bidding rules causing serious consequences, accounting violations causing serious consequences, giving and receiving bribes, and asset embezzlement. The Office of the Police Investigation Agency said it is focusing on clarifying the full scope of the case and recovering assets for the State.

According to the account, the 500kV circuit-3 project, invested by EVNNPT, showed violations across preparation and approval of cost estimates, tender documentation, tender organisation, and acceptance and settlement. Both EVNNPT and contractors were cited for failings, and contractors were also found in violation on multiple work packages. The investigation identified 13 related companies, with PC1 the only listed entity named in the source summary. The article states that a series of leaders at power companies PC1, TV1, TV2 and TV3 had previously been prosecuted.

Market Context

PC1 trades on HOSE and closed at 20,200 on 1 October 2026, the day the Ministry of Public Security briefing took place. The company sits in the construction and materials sector, where order books are heavily tied to state-backed power transmission and industrial projects. The 500kV circuit-3 line has been a flagship infrastructure programme, and legal action touching its contractors arrives against a Vietnamese market that has been sensitive to regulatory and enforcement headlines in the power and construction space. The freezing of securities accounts worth roughly VND 1,756B is a material enforcement step that can affect trading liquidity in related holdings.

Strategic Significance

For long-term investors, the case tests whether PC1’s backlog and execution capacity can withstand the removal or prosecution of project leadership and the potential disqualification of the company from future state tenders. The 500kV circuit-3 programme was a centrepiece of national grid expansion, so any finding of systemic bidding violations at EVNNPT and its contractors could reshape how power transmission contracts are awarded, favouring firms with cleaner compliance records. The asset recovery language from investigators also signals that penalties may extend beyond individuals to corporate entities, which matters for PC1’s provisioning and joint-venture participation.

What to Watch

• Formal charges or disciplinary actions against PC1 as a corporate entity, beyond individual executives.
• Any HOSE disclosure from PC1 on the status of frozen accounts, project contracts, or board changes.
• EVNNPT tender announcements for remaining 500kV circuit-3 packages and whether PC1 is excluded.
• PC1’s next quarterly earnings release for provisions, revenue recognition, and order-book updates.
• Further Ministry of Public Security briefings expanding the defendant list or asset seizure totals.