Chinese national among five probed for illegal rare earths sale to China

The investigative agency under the Ministry of Public Security launched official investigations Thursday into five people, including a Chinese citizen, for illegally selling rare earths to China.

Three of the five people being investigated for the crime of smuggling have been arrested and one placed under house arrest. Since the Chinese national has returned to his country, he will be placed on the “wanted” list.

The arrests followed preliminary investigations into the exploitation, processing and sale of rare earth ores by Thai Duong Group Joint Stock Company, a rare earth miner in the northern mountainous province of Yen Bai.

The five suspects identified so far are: Chinese national Liu Dehua; Tran Duc, director of Duong Lieu Logistics Co., Ltd; Tran Nhu Hoang, employee of Duong Lieu Logistics Co., Ltd; Nguyen Thanh Doan, director of Truong Son War Invalids JSC; and Vu Thi Tuyet, a freelancer.

Duc, Hoang and Tuyet have been detained and Doan placed under house arrest.

Preliminary investigations found that the suspects processed, disguised, concealed and completed fraudulent customs procedures to illegally export rare earths worth more than VND7.85 billion ($322 million) to China.

Official investigations have also been launched against three other people in the same case for "violating accounting regulations causing serious consequences:" Nguyen Anh Son, director of Son Anh Phu Tho Trading Company Limited; Doan Hai Nam, head of the materials department of Hoa Phat Hai Duong Steel JSC; and Do Khanh Toan, deputy director of Atexim Company Limited. Son has been arrested and the other two placed under house arrest.

Six arrests last year

These are the latest developments in the case, with formal investigations launched last October against six other people.

In October 2023, the police detained Doan Van Huan, chairman and CEO of Thai Duong Group JSC and Nguyen Van Chinh, deputy CEO and chief account of the company for “violating regulations on exploration and exploitation of natural resources” and “violating regulations on accounting, causing severe consequences.”

Director Dang Tran Chi and accountant Pham Thi Ha of Hop Thanh Phat Transport Delivery Company Limited; and chairman Luu Anh Tuan and accountant Nguyen Thi Hien of Vietnam Rare Earth JSC were also arrested on charges of "violating regulations on accounting, causing serious consequences" under Clause 3, Article 221 of the Penal Code.

The investigative agency searched 21 mining locations and private homes of suspects in Yen Bai province and three other provinces and cities. They temporarily seized an estimated 13,715 tons of rare earth ore and more than 1,400 tons of iron ore.

Initial investigations found that Huan and Chinh directed and organised the illegal exploitation and sale of 11,233 tons of rare earth ore, worth about VND440 billion ($17.7 million), and 152,856 tons of iron ore, worth VND192 billion ($7.75 million).

The investigators have estimated that the suspects earned VND632 billion ($25.5 million) from the illegal sale of rare earth and iron ores.

Huan and Chinh were also found making a deal with Vietnam Rare Earth JSC and Hop Thanh Phat Transport Delivery Company Limited on issuing VAT invoices for reduced quantity and prices of the ores, helping Thai Duong Group JSC leave off its accounting books over VND28 billion ($1.13 million) earned from selling rare earth and iron ores.