Jewelry major SJC appoints acting CEO after six employees subject to investigation

Saigon Jewelry Company Limited (SJC), Vietnam's leading jewelry maker, has appointed deputy CEO Dao Cong Thang as acting CEO, replacing Le Thuy Hang.

An SJC representative stated that Thang began working as acting CEO on October 18 and will hold the position for no more than 12 months, per a Ho Chi Minh City People's Committee decision.

He is responsible for leading, managing and overseeing the company’s operations as an CEO until an official appointment is made. Earlier, the position was held by Le Thuy Hang from December 2019.

This move came after six employees of SJC had been investigated for exploiting the government's gold price stabilization programs for illicit gains, falsifying documents, and embezzling assets.

The Ministry of Public Security has yet to disclose identities of the violators and other details, but stated that they are focusing on consolidating evidence, expanding investigations, and recovering the embezzled assets.

SJC is a state-owned enterprise under the management of the HCMC People's Committee. Since 2012, SJC has been chosen by the government and the State Bank of Vietnam as the national gold brand, which accounts for nearly 97% of market transactions.

At a meeting in mid-May, then CEO Le Thuy Hang stated that the company did not benefit from being selected as the sole gold bar supplier.

Prior to 2012, when Decree 24 on gold trading activities had not yet been brought into life, SJC had an equity of VND400 billion ($15.73 million) but earned a net profit of VND300-400 billion per year. After 2012, its profit plunged to just a few dozen billion VND (VND10 billion = $393,130).

Due to the inability to produce gold bullions, the company shifted its focus to jewelry production, with profit mainly from this segment.

Initially, SJC's jewelry products faced difficulties and were unable to compete with others. The company has been profitable only in the past six years. Last year, SJC reached a revenue peak of over VND28.4 trillion ($1.12 billion), but after-tax profit was only VND61 billion ($2.4 million).

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.