Former CEO of Vietnam's leading jewelry SJC arrested for power abuse

Le Thuy Hang, former CEO of Saigon Jewelry Company Limited (SJC), Vietnam's leading jewelry maker, has been arrested for “abusing positions and power while on duty".

Five of her subordinates, all being employees of SJC, were also detained for alleged violations, Major General Hoang Anh Tuyen, deputy head of the Ministry of Public Security Office and the ministry's spokesperson announced on Tuesday.

Among them, Mai Quoc Uy Vien, director of the company's gold workshop; Tran Tan Phat, deputy director; and Nguyen Thi Hue, director of the Hai Phong branch were charged with “abusing positions and power while on duty".

Hoang Le Hue, director of the Central Region branch, and Nguyen Thi Loc, an accountant at the branch, were accused of "embezzlement of property."

On September 16, 2024, the Ministry of Public Security's investigative agency initiated a probe into the case of "embezzlement of property and abuse of positions and power while on duty” at SJC and related entities.

Preliminary investigation results showed that exploiting the government’s gold price stabilization programs, these individuals falsified documents and embezzled funds for personal gains. Investigators are focusing on collecting further evidence and will expand their probe, aiming to recover embezzled assets.

Following the arrests, SJC announced that deputy CEO Dao Cong Thang had been appointed acting CEO from October 18, 2024, for a term of up to 12 months. Thang was first appointed as deputy CEO in April 2014.

Founded in 1988, Saigon Jewelry Company is a state-owned enterprise under the People's Committee of Ho Chi Minh City. In 2010, it was restructured into Saigon Jewelry Company Limited (SJC).

It has developed its SJC gold bars into a national brand with high value and liquidity. At its peak (2007-2011), SJC gold bullion accounted for 90% of gold transactions and 85% of the gold held by individuals and organizations in Vietnam. It was also used for real estate transactions.

In 2011, SJC was ranked fourth in the Top 500 Largest Enterprises in Vietnam, with a record revenue of VND111 trillion ($4.36 billion). However, fluctuations in gold prices and unstable exchange rates led to the weakening of the local currency, causing other investment channels, such as the stock market and real estate, to stagnate.

In April 2012, the government issued Decree 24 featuring regulations on gold trading, with the aim of "preventing the goldenization of the economy." Since then, the State Bank of Vietnam has held the monopoly in producing gold bars, hiring SJC to manufacture gold bullions under strict supervision.

According to SJC's 2023 financial statement, the company’s revenue from gold trading reached VND28.4 trillion ($1.12 billion), up nearly 5% from 2022. However, the cost of goods accounted for 99% of the revenue, totaling VND28.2 trillion. As a result, the gross profit was just over VND241.6 billion ($9.48 million), equivalent to a gross profit margin of 0.85%.

After deducting expenses, the company reported a pre-tax profit of VND88 billion ($3.45 million), a 27% increase compared to the previous year - its highest profit in three years. The after-tax profit was nearly VND61 billion ($2.4 million), a 24% year-on-year rise.

This year, the company targets a revenue of approximately VND30.15 trillion ($1.2 billion) and a profit of VND70.2 billion ($2.76 million), up 6% and 15%, respectively, compared to 2023. If successful, this will be the third consecutive year the company achieves over $1 billion in revenue.