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Appointment of Sabeco Deputy CEO to be reviewed

Released at: 22:19, 15/06/2016

Appointment of Sabeco Deputy CEO to be reviewed

Photo: Duc Anh

Minister of Industry and Trade asks relevant agencies to look into the appointment Mr. Vu Quang Hai.

by Quynh Nguyen

Minister of Industry and Trade Tran Tuan Anh has directed relevant agencies to review the appointment of Mr. Vu Quang Hai as Deputy CEO of the Saigon Beer Alcohol-Beverage Joint Stock Corporation (Sabeco).

Minster Tuan Anh told local media that he had directed the Party Commission in collaboration with the Organization and Personnel Department under the Ministry of Industry and Trade (MoIT) to review the efforts of Mr. Hai when he worked at MoIT’s Vietnam Trade Promotion Agency and as Sabeco’s Deputy CEO.

“MoIT agencies are seriously and urgently reviewing all issues,” the Minister was quoted as saying.

As VET reported on June 14, the Vietnam Association of Financial Investors (VAFI) called for the dismissal of Mr. Hai as Deputy CEO of Sabeco due to his inexperience and the “illegality” of his appointment.

In its petition, VAFI said that Mr. Hai, the son of the former Minister of Industry and Trade Vu Huy Hoang, was appointed to the position in early 2015 when he was only 28 years of age. He was previously appointed as CEO of the PetroVietnam Finance Investment JSC (PVFI) when he was only 25.

The association noted PVFI’s losses of VND155 billion ($6.97 million) in 2011 and VND67 billion ($3 million) in 2012 under Mr. Hai’s stewardship. Though VAFI viewed PVFI as “nearly bankrupt” during Mr. Hai’s leadership, he was moved to the Vietnam Trade Promotion Agency after one year and shortly afterwards became Sabeco’s Deputy CEO.

Responding to the issue in local media, Mr. Hoang said he did not propose the appointment of his son. “Sabeco proposed the appointment in accordance with procedures,” he said.

He added that before Mr. Hai became CEO of PVFI the company had recorded losses of over VND200 billion ($9 million). “The losses are not his responsibility,” he told local media.

Mr. Hai also said he was not responsible. “I can confidently say that these losses were not my fault,” he claimed. “When working as CEO of PVFI I did everything to cut its losses.”

Regarding his appointment as Deputy CEO of Sabeco, he said it was proposed by Chairman of Sabeco Phan Dang Tuat and aimed at strengthening the corporation’s young leadership group. “Mr. Tuat appointed not only me but also two others as Deputy CEOs of Sabeco,” he was quoted as saying.

Mr. Nguyen Hoang Hai from VAFI, meanwhile, confirmed to VET that it had gathered its information very carefully. “All of the information we released is based on real figures and we aren’t slandering anyone,” he stressed.  

“The appointment of Mr. Hai is consistent with the process of restructuring Sabeco,” Mr. Tuat was quoted as saying. “After discussions with the Organization and Personnel Department at MoIT we saw that Mr. Hai’s ability was suitable with the criteria set by Sabeco’s board to become Deputy CEO.”

Sabeco now has charter capital of VND6.4 trillion ($288 million), with State capital accounting for 89.59 per cent. Mr. Vo Thanh Ha, who was appointed as the representative of State capital in Sabeco, has been Chairman and CEO since January 1 this year.

According to a business report from Sabeco, in the first four months of this year beer consumption reached 517 million liters, an increase of 17 per cent over the same period of 2015. Its pre-tax profit was estimated at VND1.25 trillion ($56.2 million), down 27 per cent year-on-year. 

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