Businesses try to ease losses with private properties

Last update 16:00 | 17/03/2017
VietNamNet Bridge – Vo Truong Thanh, former president of Truong Thanh Furniture Group (TTF), and Tram Be, former deputy chair of Sacombank, have committed to compensate for losses incurred by their enterprises as a way to be responsible for their mismanagement.vietnamnet bridge, english news, Vietnam news, news Vietnam, vietnamnet news, Vietnam net news, Vietnam latest news, Vietnam breaking news, vn news, TTF, Tram Be, Thai Nguyen plant

The board of directors of TTF has submitted to shareholders a plan to fix the existing problems suggested by Vo Truong Thanh, former chair and CEO of TTF, and Vo Diep Van Tuan, Thanh’s son and former deputy CEO.Under the plan, Thanh and Tuan would compensate a part of the consequences caused by his poor management in cash or assets.

In exchange, Thanh and Tuan will be free of all responsibilities, including legal responsibility. TTF will work with Tan Lien Phat, the big shareholder which holds 30 percent of TTF shares, so that Tan Lien Phat waives its claim against Thanh and Tuan.

TTF, under management by Thanh and Tuan, incurred the loss of VND1.1 trillion in the second quarter of 2016 because of the ‘evaporation’ of inventory products and provisioning.

TTF and Sacombank cases have reminded people of the big losses of trillions of dong incurred by state-owned enterprises such as Dinh Vu Fiber Plant, Thai Nguyen Steel Mill and Dung Quat Ethanol Plant in Quang Ngai. No one is taking responsibility for the losses.

Prior to that, in 2015, Tram Be, who was then deputy chair of Sacombank, also voluntarily transferred Sacombank and Southern Bank shares to the State Bank and the institutions or individuals appointed by the State Bank. The institutions or individuals have full rights as shareholders at the banks.

Be promised that during the process of implementing the restructure and debt settlement of the bank after the merger, if the value of the assets guaranteeing his debt obligations is not big enough, he will provide other assets under his ownership.

Using personal properties to compensate businesses’ losses is believed to be a reasonable solution that helps ease losses for businesses and shareholders. However, the solution is not appreciated by many people.

In case of TTF, Thanh and Tuan proposed to transfer 15 million TTF shares, VND57 billion worth of capital contributed to other enterprises. They also have other assets, including land and houses. The total assets are worth VND160 billion.

According to Huynh Minh Tuan from VnDirect Securities Company, the consequences to TTF are too big (the company lost VND1.1 trillion, prestige has been seriously affected) which cannot be compensated by private assets.

He also pointed out that the mismanagement made investors lose big money. Many of them bought TTF shares at VND30,000-40,000 per share and had to sell at VND6,000 per share, which means they lose VND34,000 for every share.

“The total damages to shareholders are worth up to trillions of dong,” he said.

TTF and Sacombank cases have reminded people of the big losses of trillions of dong incurred by state-owned enterprises such as Dinh Vu Fiber Plant, Thai Nguyen Steel Mill and Dung Quat Ethanol Plant in Quang Ngai. No one is taking responsibility for the losses.

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This entry was posted in Doanh nghiệp tư nhân - Private enterprises and tagged , , , by Trần Đình Hoành. Bookmark the permalink.

About Trần Đình Hoành

I am an attorney in the Washington DC area, with a Doctor of Law in the US, attended the master program at the National School of Administration of Việt Nam, and graduated from Sài Gòn University Law School. I aso studied philosophy at the School of Letters in Sài Gòn. I have worked as an anti-trust attorney for Federal Trade Commission and a litigator for a fortune-100 telecom company in Washington DC. I have taught law courses for legal professionals in Việt Nam and still counsel VN government agencies on legal matters. I have founded and managed businesses for me and my family, both law and non-law. I have published many articles on national newspapers and radio stations in Việt Nam. In 1989 I was one of the founding members of US-VN Trade Council, working to re-establish US-VN relationship. Since the early 90's, I have established and managed VNFORUM and VNBIZ forum on VN-related matters; these forums are the subject of a PhD thesis by Dr. Caroline Valverde at UC-Berkeley and her book Transnationalizing Viet Nam. I translate poetry and my translation of "A Request at Đồng Lộc Cemetery" is now engraved on a stone memorial at Đồng Lộc National Shrine in VN. I study and teach the Bible and Buddhism. In 2009 I founded and still manage dotchuoinon.com on positive thinking and two other blogs on Buddhism. In 2015 a group of friends and I founded website CVD - Conversations on Vietnam Development (cvdvn.net). I study the art of leadership with many friends who are religious, business and government leaders from many countries. In October 2011 Phu Nu Publishing House in Hanoi published my book "Positive Thinking to Change Your Life", in Vietnamese (TƯ DUY TÍCH CỰC Thay Đổi Cuộc Sống). In December 2013 Phu Nu Publishing House published my book "10 Core Values for Success". I practice Jiu Jitsu and Tai Chi for health, and play guitar as a hobby, usually accompanying my wife Trần Lê Túy Phượng, aka singer Linh Phượng.

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