Construction major Vinaconex chairman resigns

Dao Ngoc Thanh has stepped down as chairman of Vietnam’s leading construction firm Vinaconex for the 2022-2027 term due to "old age and long-term medical treatment".

The resignation was approved by the company’s board of directors on Friday.

Instead, Thanh will be chairman of Vinaconex's newly established strategy council, which is in charge of comprehensively researching and evaluating business activities, as well as proposing issues related to the strategy and development orientation of the corporation.

Thanh, 78, started working as a lecturer at the University of Civil Engineering in 1971. In 2003, he became more deeply involved in business affairs after the request of Vihajico Group chairman Luong Xuan Ha.

Since then, the name of Dao Ngoc Thanh has been associated with a series of large projects, most prominently the Ecopark Urban Area in the northern province of Hung Yen. Thanh used to be CEO of Viet Hung Investment and Development Joint Stock Company - the developer of Ecopark.

He was elected chairman of Vinaconex in 2019, representing the group of shareholders An Quy Hung which holds more than 57% of shares in this construction firm.

At that time, Thanh also played an important role in many other companies such as chairman of Contana Group (CSC) and vice chairman of Asia-Pacific Investment JSC (API).

Thanh's successor as chairman of Vinaconex is Nguyen Huu Toi. Toi is currently a board member and deputy CEO of Vinaconex. Previously, he was assigned by the board of directors to directly direct the implementation of construction projects using public investment capital that Vinaconex participated in.

This year, Vinaconex, listed on the Ho Chi Minh Stock Exchange as VCG, is gunning for VND15 trillion ($590 million) in consolidated revenue and VND950 billion ($37.3 million) in net profit, up 15% and 140% year-on-year, respectively.

The firm plans to hike its charter capital to VND7.18 trillion ($282.6 million) from the current VND5.34 trillion ($210.27 million). To implement the plan, it will issue 64.1 million shares, or 12% of its stake, for a 2023 dividend payout.

Last year, VCG reaped VND396 billion ($15.5 million) in net profit, down 57% year-on-year and equivalent to 46% of the year’s target. It earned VND12.96 trillion ($510.03 million) in revenue, up 35% year-on-year and reaching 79% of the plan.

At Friday’s close, VCG stood at VND18,300 ($0.72) per share.