Vinaconex (VCG) CEO Resigns Amid Arrests, Targets 73% Profit Drop in 2026

Overview

Vinaconex (VCG) announced the resignation of CEO Nguyen Xuan Dong, effective April 28, and the appointment of Pham Thai Duong as his replacement. The leadership change follows the arrests of former chairman Nguyen Huu Toi and deputy general director Duong Van Mau on bidding-related charges. The company has set sharply lower 2026 targets, with revenue falling 22% and net profit dropping 73%.

Key Facts

• CEO Nguyen Xuan Dong resigned effective April 28, 2026; he had held the position since late 2018.
• New CEO Pham Thai Duong holds a civil engineering degree and an MBA; he was appointed deputy general director in late February 2026.
• Former chairman Nguyen Huu Toi and deputy general director Duong Van Mau were arrested in early March 2026 for alleged bidding violations.
• Two new board members, Nguyen Hai Dang and Le Phung Hoa, were elected to replace the arrested directors; both were nominated by Pacific Holdings, which owns over 45.1% of VCG.
• 2026 revenue target: VND 15,423 billion, down 22% from 2025.
• 2026 net profit target: VND 1,037 billion, down 73% from 2025.
• VCG closed at VND 22,000 on April 15, 2026, down 1.53% with volume of 11 million shares.

What Happened

Vinaconex announced on April 29 that CEO Nguyen Xuan Dong had resigned effective the previous day. Dong had led the company since 2018, during which time An Quy Hung, a firm he chaired, acquired nearly 58% of VCG from SCIC for VND 7,400 billion. The new CEO, Pham Thai Duong, was only recently appointed deputy general director in late February.

The leadership shake-up comes after the arrests of former chairman Nguyen Huu Toi and deputy general director Duong Van Mau in early March on charges of bidding violations. At the annual general meeting the prior week, Dong told shareholders that the full legal risk could not yet be assessed but that VCG would minimize the impact on operations.

Market Context

VCG shares closed at VND 22,000 on April 15, down 1.53% on volume of 11 million shares. The stock has been under pressure amid the unfolding legal issues and the company’s weak 2026 guidance. VCG is listed on HOSE and operates in the construction and real estate sectors, which have faced headwinds from a slowing property market and tighter credit conditions.

Strategic Significance

The simultaneous departure of the CEO and the arrests of two top executives create significant governance uncertainty at VCG. The 2026 targets imply a sharp contraction in business activity, likely reflecting project delays, legal costs, and a cautious outlook. The appointment of a new CEO with a short tenure as deputy suggests limited succession planning. Pacific Holdings’ dominant board representation indicates continued influence from the largest shareholder, but the legal overhang may deter foreign and institutional investors.

What to Watch

• Outcome of the criminal investigation into former chairman Toi and deputy Mậu, and any potential impact on VCG’s contracts or bidding rights.
• Q1 2026 earnings release for signs of revenue and profit trends versus the full-year guidance.
• Any further management changes or board restructuring at the upcoming extraordinary general meeting.
• Updates on VCG’s project pipeline and order book, particularly in infrastructure and real estate.
• Foreign ownership levels and trading patterns on HOSE as sentiment shifts.