On September 23, Rang Dong Holding (RPD) publicized information about the judgment by the HCM City High People’s Court on the company’s appeal against the decision by the foreign arbitrator in a dispute with Sojitz Pla-net Corporation, a subsidiary of Sojitz Group. 

Rang Dong lost the case and it will have to pay back VND157 billion and other relevant fees and charges.

In 2016, Rang Dong signed a comprehensive trade cooperation agreement with Sojitz, under which Sojiz would provide materials, transfer technology, management system and develop new products in accordance with Japanese standards for Rang Dong.

In 2017, Rang Dong and Sojitz signed a strategic shareholder agreement, under which Sojitz bought 5 million common stocks, issued and fully paid for Rang Dong Long An Plastics shares, worth VND174 billion.

However, according to Sojitz, after the share transfer deal, Rang Dong broke the obligations on satisfying certain post-transfer conditions. Therefore, Sojitz decided to terminate the contract and request Rang Dong to refund VND157 billion, equal to 90 percent of the share value Sojitz had paid.

However, Rang Dong refused to pay back the amount of money, which ended up with Sojitz deciding to bring the case to the Singaporean International Arbitration Center (SIAC).

On July 6, 2022, SIAC ruled that Sojitz won the case, and that Rang Dong had to pay Sojitz VND157 billion as compensation for damages. Also, Rang Dong had to pay an interest rate of 10 percent per annum for the amount of VND157 billion, from April 1, 2020 to the day of payment.

Rang Dong had to pay fees and charges to SIAC’s arbitration council, and administrative fees and charges by SIAC, worth hundreds of millions of dong.

On July 8, 2022, Sojitz sent a document requesting Rang Dong to make payment as per the decision by the Singaporean arbitrator.

Rang Dong then filed an appeal against the decision. The HCM City People’s Court, in its decision released January 10, 2023, rejected the decision by SIAC.

On January 16, 2023, Sojitz filed an appeal against the first instance decision of the HCM City People's Court.

Later, the HCM City High People’s Court released the judgment on accepting the appeal, recognizing and enforcing the arbitrator’s decision in Vietnam.

Rang Dong Holding (its predecessor was Rang Dong Plastics Company) began listing its shares on the HCM City bourse in 2009. Its current president is Ho Duc Lam, who holds over 50 percent of shares. 

Manh Ha