QCG CEO Nguyễn Thị Như Loan Sentence Cut to Non-Custodial Rehabilitation

Overview

On 23 September, the appellate court of the Supreme People’s Court in Hồ Chí Minh City partially accepted the appeal of Nguyễn Thị Như Loan, General Director of Quốc Cường Gia Lai (HOSE: QCG), converting her 18-month suspended prison sentence into 11 months and 18 days of non-custodial rehabilitation. The ruling closes the criminal phase of the 39-39B Bến Vân Đồn land case, in which state losses were assessed at more than VND 542.7 billion. For QCG shareholders, the decision removes a key legal overhang on the company’s leadership.

Key Facts

• Appellate panel issued its ruling on 23 September; the court announced the outcome publicly on 9 October.
• Sentence reduced from 18 months’ suspended imprisonment to 11 months and 18 days of non-custodial rehabilitation (cải tạo không giam giữ).
• The court deducted 116 days of pre-trial detention, determining that Nguyễn Thị Như Loan has completed her sentence.
• The 39-39B Bến Vân Đồn site covers more than 6,201 m² and was originally allocated to Tập đoàn Công nghiệp Cao su Việt Nam.
• State losses from the transfer were assessed at more than VND 542.7 billion.
• At first instance in April 2026, the Hồ Chí Minh City People’s Court handed down the original 18-month suspended sentence.
• At appeal, Nguyễn Thị Như Loan voluntarily paid an additional VND 500 million toward remediation; the panel found the consequences of the case fully remedied.

What Happened

The case concerns the transfer of capital contributions in Phú Việt Tín Company, which the court characterised as a de facto transfer of the 39-39B Bến Vân Đồn land plot without the valuation or auction procedures required by law. According to the case file, that process caused losses to state assets exceeding VND 542.7 billion. Nguyễn Thị Như Loan was convicted at first instance in April 2026 under the charge of violating regulations on the management and use of state assets, causing loss and waste, and received 18 months’ imprisonment suspended.

She appealed seeking exemption from penalty. At the appellate stage she voluntarily paid an additional VND 500 million to remediate consequences, and together with supplementary payments by other defendants the panel determined that the case’s consequences had been fully remedied. The panel rejected her request for exemption from penalty or criminal liability, but accepted the appeal in part and reduced her term by 12 months. Because the remaining six months fell below the starting point of the applicable sentencing range, the panel converted the suspended prison term into non-custodial rehabilitation, and the 116 days already served in detention were credited against it.

Market Context

QCG trades on the HOSE and closed at 10,150 on 9 October 2026. The stock has been closely tied to the legal proceedings surrounding its General Director and the Bến Vân Đồn land matter, which has kept a governance and litigation discount on the shares. The resolution of the criminal case removes one source of uncertainty for the real estate sector name, though the broader Vietnamese property market continues to be shaped by credit conditions, land-law implementation and project approval timelines rather than single-company legal outcomes.

Strategic Significance

For long-term holders, the practical effect is that QCG’s senior management remains in place and the company avoids the disruption of a custodial outcome for its General Director. The court’s finding that the losses were fully remediated also removes a potential tail risk around further asset recovery claims tied to this specific transaction. The case nonetheless highlights the compliance risk attached to land transfers structured through capital-contribution deals, a pattern Vietnamese regulators have scrutinised repeatedly. QCG’s investment case now rests on its project pipeline and balance sheet rather than on the outcome of this prosecution.

What to Watch

• QCG’s next annual or extraordinary general meeting resolutions for any change in board or management composition.
• Quarterly financial statements for disclosure of any remaining provisions or obligations linked to the Bến Vân Đồn matter.
• Any civil follow-on claims or asset-recovery actions by state agencies connected to the 39-39B plot.
• HOSE disclosure filings on related-party transactions and land-use rights at QCG’s project companies.
• Developments in the broader Bến Vân Đồn area redevelopment and any revised land valuation.