Tan Hiep Phat faces misfortune

In early April 2023, Tan Hiep Phat, a large private enterprise owned by Tran Quy Thanh and his family, one of the richest business families in Vietnam, called the "next Red Bull" in the region, became down and out after its leaders were arrested and prosecuted.

The leaders, general director Tran Quy Thanh, his daughter Tran Uyen Phuong (deputy general director) and another daughter Tran Ngoc Bich, have been prosecuted for "abusing trust to appropriate property".

The arrest and prosecution have shaken the Vietnamese business community, because Tan Hiep Phat is the leading beverage manufacturer in Vietnam and hoped to become a powerful group in the region.

Tan Hiep Phat, established in 1994, is the owner of many well-known brands, including Number One, Tra Thanh Nhiet Dr Thanh and the annual profit of trillions of VND each year.

In 2019, Thanh was listed among ultra-healthy businessmen, just second to Pham Nhat Vuong. Tan Hiep Phat then revealed a plan to seek $3 billion worth of capital for the ambitious plan to become No 1 in Southeast Asia in the beverage industry. Sources said the group once refused a deal worth $2.5 billion offered by Coca-Cola.

Tan Hiep Phat is among the top 5 dominant enterprises in the beverage market. However, it recently jumped into the financial investment and real estate sectors. Though Tan Hiep Phat is just a ‘rookie’ in the real estate sector, his family owns a land bank stretching across many southern provinces.

Trinh Van Quyet suffers, FLC Group in difficulties

In March 2022, investors were stunned by the news that FLC president Trinh Van Quyet was being investigated and prosecuted for manipulating the stock market.

His illegal activity was conducted from early December 2021 to January 10, 2022, when Quyet sold 74.8 million FLC shares without notice.

Quyet’s two younger sisters were also arrested for investigation on the same charges.

On August 25, 2022, the Ministry of Public Security released a decision on additionally prosecuting Quyet for "swindling to appropriate properties".

After the arrests, all businesses belonging to the FLC ecosystem were affected.

The trade of all shares of FLC family on the bourse has been suspended.  The HCM City Stock Exchange (HOSE) decided to delist nearly 710 million FLC shares on February 20 because the enterprise "seriously broke the regulation on the obligation of exposing information". 

Meanwhile, 568 million ROS shares of FLC Faros were delisted on September 5, 2022.

FLC was once a powerful corporation with fast capital growth. It is the developer of resort real estate projects in many localities, including Sam Son (Thanh Hoa), Quy Nhon, Quang Ninh and Quang Ngai. It recently expanded its business to tourism, technology, media and golf services.

In 2017, FLC established Bamboo Airways and became operational just two years later. This is a great success for the group. FLC’s golf courses and resort real estate, including FLC Ha Long Bay Golf Club and Luxury Resort, FLC Sam Son, are also famous.

Stories of Tan Hoang Minh, Van Thinh Phat

Just one month after the arrest of FLC managers, president of Tan Hoang Minh Group Do Anh Dung and six accomplices were detained and prosecuted for swindling and appropriating properties, including Do Hoang Viet, born in 1993, the son of Dung.

Tan Hoang Minh’s managers were arrested because they used subsidiaries and related businesses to mobilize capital through bond issuance. They successfully raised funds from investors but did not use the capital for business purposes as stated.

After Do Anh Dung and Do Hoang Viet were arrested, Do Hoang Minh (Denis Do, 1986), the elder son, was given the right to manage Tan Hoang Minh.

Similarly, Van Thinh Phat, a well-known family-run group owned by Truong My Lan, also fell into crisis in October 2022. Truong My Lan, president of Van Thinh Phat was arrested and prosecuted for swindling appropriate assets.

Truong Hue Van, the daughter of Lan, CEO of Van Thinh Phat, was also prosecuted for swindling appropriate assets because she made fraudulent acts in the issuance, trading of bonds in contravention of the law to appropriate trillions of VND in 2018-2019.

Van Thinh Phat, owned by the Truong family, is considered one of the wealthiest families in Vietnam. It is owned and managed by Lan and her husband – Eric Chu Nap Kee, a businessman from Hong Kong (China).

Van Thinh Phat has close relations with SCB and owns many real estates in HCM City.

Manh Ha