Top Vietnam auto dealer Savico removes 5 deputy general directors

Major auto dealership Savico's board of directors has dismissed Doan Van Quang, Nguyen Cong Binh, Vo Minh Luc, Tran Thai Son and Tran Hang Thu as deputy general directors.

The corporation has also dismissed Ngo Van Danh as chief accountant effective June 16.

Some of the deputy general directors have been given new positions announced in other changes effective the same date.

Accordingly, Tran Hang Thu will be vice chairman of Saigon Automotive Service JSC (Saigon Ford), a commercial vehicle company and Savico subsidiary; Doan Van Quang will be director of the Saigon Ford executive board; Nguyen Cong Binh will be director of the real estate department in charge of Savico Investment JSC (Savico Invest) as well as board member and deputy general director of Savico Invest; and Tran Thai Son will function as Savico chief accountant.

In another appointment, Ngo Van Danh will be director of Savico's real estate department that manages services in the Ho Chi Minh City area.

At the 2023 annual general meeting of shareholders in April, Savico's shareholders had dismissed five board members and agreed to reduce the number to seven people. The seven members are: Vu Dinh Do, Tran Quang Truong, Tran Xuan Anh, Nguyen Ngoc Chau, Tran Thi Hong Bich, Ho Viet Ha and Tran Duc Huy.

Vu Dinh Do replaced Mai Viet Ha as Savico chairman.

In the first quarter of this year, Savico reported net revenues of VND4.79 trillion ($203.68 million) and after-tax profits of VND15 billion ($637,600), both down 84% year-on-year, respectively.

Savico targets revenues of VND29.7 trillion ($1.25 billion) and after-tax profits of VND439 billion ($18.5 million) in 2023, up 39% but down 25% year-on-year, respectively.

The company’s annual report says it expects the auto market to face difficulties in 2023 due to macroeconomic and other instabilities.

Savico is the nation’s largest and oldest automobile distributor, established in 1986. It is also a pioneer on the stock exchange, officially listing on the Hanoi Stock Exchange (HNX) in 2006 before switching to the Ho Chi Minh Stock Exchange (HoSE) in 2009.

In general auto news, vehicles sales by members of the Vietnam Automobile Manufacturers' Association (VAMA), which does not include VinFast and Hyundai, plunged 36% year-on-year to 113,527 in the first five months of 2023. They included 82,943 passenger cars, down 41% year-on-year; 29,507 commercial vehicles, down 12%; and 1,077 special-purpose vehicles, down 63%.

VinFast delivered 8,483 units to the Vietnamese market in the five months, while Hyundai reported sales of 22,903 units, according to a report by TC Group, the manufacturer and official retailer of Hyundai vehicles in Vietnam.