Quoc Cuong Gia Lai JSC (QCG) has confirmed that the company remains operational despite the recent arrest of Nguyen Thi Nhu Loan, the company's CEO. Loan was detained on July 19th, 2024, under allegations of violating regulations concerning the management and use of state assets.

Nguyen Thi Nhu Loan, 64, faces accusations related to the transfer of a significant land project located at 39-39B Ben Van Don, Phu Nhuan District, Ho Chi Minh City. The investigation into this case is part of a broader inquiry into the Vietnam Rubber Industry Group (GVR) and its associated entities.

The focus has shifted to Nguyen Quoc Cuong, the son of Nguyen Thi Nhu Loan. Cuong, who was a notable figure in QCG, held positions such as member of the board and deputy general director until his abrupt departure from the company in November 2018. 

Cuong, often known as Cuong Do La (dollar), was born in 1982 and served on the Board of Directors, as Vice General Director, and as the information disclosure officer at QCG.

Cuong was appointed Vice General Director of QCG in 2006 at age 24 and joined the Board of Directors in 2008. In November 2018, he unexpectedly resigned from all QCG positions, just one day after the Central Inspection Commission issued a press release following its 31st meeting, which included inspecting signs of violations by Tat Thanh Cang, former Deputy Secretary of the Ho Chi Minh City Party Committee.

Cuong holds only 537,000 QCG shares (0.2%), a minimal stake compared to Loan’s 37.05% (nearly 102 million shares), his sister Nguyen Ngoc Huyen My’s 14.32% (nearly 39.4 million shares), or his aunt Nguyen Thi Anh Nguyet’s 3.52% (nearly 9.7 million shares).

QCG, under Loan’s leadership, has been notorious for acquiring prime land at low prices but has faced many controversies. Besides the 39-39B Ben Van Don project, QCG had the 32-hectare Phuoc Kien project. Tan Thuan Company (under the Ho Chi Minh City Party Committee Office) sold over 30 hectares of land at Phuoc Kien residential area to QCG for only 1.29 million VND/m². This project was later revoked, and Tan Thuan Company’s leadership faced disciplinary action.

For years, QCG has struggled with capital tied up in stalled projects, leading to several quarters of losses and very low revenue. QCG shares have fluctuated significantly, sometimes increasing or decreasing five to seven times.

In August 2020, Loan stepped down as chairwoman (remaining as CEO) after Cuong left QCG to pursue his own projects.

The land transfer at 39-39B Ben Van Don occurred years ago, from 2009 to 2017. The land was state-owned, managed by Dong Nai Rubber Company and Ba Ria Rubber Company, both under Vietnam Rubber Industry Group.

In December 2009, these companies formed Phu Viet Tin LLC (Phu Viet Tin; headquarters at 39-39B Ben Van Don) with a charter capital of 6 billion VND. In March 2010, the Ho Chi Minh City People's Committee decided to revoke and allocate the 39-39B Ben Van Don land to Phu Viet Tin for project development.

After receiving the land, Phu Viet Tin did not implement the project and continuously changed its capital structure. In 2014, QCG, led by Loan, appeared. QCG spent 465 billion VND to acquire Phu Viet Tin’s capital and later sold it to two entities and one individual, earning a profit of 382 billion VND.

In late March 2017, Phu Viet Tin merged with Phuc Nguyen Real Estate Investment and Development LLC.

The Government Inspectorate determined that Phu Viet Tin’s failure to develop the project violated Government Decree 12/2009. Additionally, Ho Chi Minh City's decision to allocate land and appoint Phu Viet Tin as the project developer without an auction violated the 2003 Land Law and Ministry of Planning and Investment Circular 03/2009.