return icon

Tan Hoang Minh case raises fears about asset appropriation via bond issuance

The Tan Hoang Minh case shows that previous warnings by experts about the fraudulent appropriation of assets through bond issuance were well-founded.


On April 5, the investigation agency filed charges against Do Anh Dung, chair of Tan Hoang Minh Group, and accomplices, and detained them for “swindling to appropriate assets”.

Initial investigations found that from July 2021 to March 2022, Dung and individuals at Tan Hoang Minh Group committed fraud, using three subsidiaries and related companies to issue nine corporate bond issuance campaigns worth VND10.3 trillion. The money was not used for the business purpose stated when issuing the bonds.

The investigation is clarifying what the money was used for, where the money is, and which types of assets the money has been converted to.

Prior to that, in late 2021, the State Securities Commission (SSC), when inspecting bond issuance at VsetGroup, discovered abnormalities which posed high risks for investors.

VsetGroup signed 678 bond sale contracts from January 1, 2020 to October 27, 2021 with total value of VND208.6 billion but did not provide signed contracts as requested by the inspectors.

VsetGroup also could not provide documents related to the use of the money raised from the bond issuance. The proceeds from bond issuance, and the payment for bond interest and principal were not entered in the accounts in their financial statements as of December 31, 2020 and June 30, 2021.

Meanwhile, the money raised from bond issuances were withdrawn by individuals from the company’s account, and this was not shown in books.

Experts have repeatedly warned about risks from loose requirements on bond issuance. In order to get bank loans, businesses have to prove the efficiency of their business plans, and lenders must follow a strict disbursement process. 

But businesses don’t have to have mortgaged assets to make a private offering and don’t have to have a guarantee. Bond issuers are not under supervision over their use of money. As a result, many businesses use money for the wrong purposes and fall into insolvency.

Analysts say there is a bond rush as businesses are rushing to issue corporate bonds with high value, and it’s still questionable if the money is used for the right purposes.

An expert at a recent investment forum spoke about a business that mobilized several trillions of dong from the public through bond issuance, but only several hundreds of billion dong was used to develop projects, while the remaining money was used to pay bank debts and buy agricultural land. The business ended up incurring a big loss. 

In early September 2021, MOF instructed the State Securities Commission to strengthen inspection and supervision over bond issuance activities and bond services.

Tran Thuy


Ministry works to boost rail import-export volume to 5 million tonnes by 2030

The Ministry of Transport has submitted a plan to increase international freight transport by rail by 2030, with a target of shipping between 4 and 5 million tonnes.

PM holds telephone talks with French counterpart

Prime Minister Pham Minh Chinh on November 28 had a telephone conversation with his French counterpart Elisabeth Borne to seek ways to further strengthen the Vietnam-France strategic partnership, especially in economy, trade and investment.

Famous object designer presents art of assembling with Vietnamese lacquer

For the first time, Vietnamese people have a chance to see with their own eyes unique artworks by famous jewellery and object designer Gilles Jonemann that are on display at an exhibition in Hanoi.

Hanoi construction density from above

Many areas in Hanoi have seen high construction density with houses and high buildings due to rapid urbanisation.

Businesses in quandary due to credit limit

The long-term credit push to support the economy has a distorted capital flow.


National Assembly to hold extraordinary session in January 2023

Book tells journeys of Vietnamese immigrants to the UK in search of better lives

The life stories of Vietnamese migrants who are seeking better lives in the UK are vividly told in a new book.

Vietnamese movie honoured at France festival

“Tro tan ruc ro” (Glorious Ashes) by Bui Thac Chuyen won the "Golden balloon" award (Montgolfière d'or) at the Festival des 3 Continents 2022 which took place in Nantes, France, from November 18 – 27.


Gloomy outlook for exporters of aquatic products next year

Male model finishes fourth runner-up at Mister Grand International

Nguyen Vu Linh, Vietnamese representative at Mister Grand International 2022, was awarded the fourth runner-up title during the male pageant’s grand final held in Trinidad and Tobago on November 26.

Magnitude three earthquake hits northern border locality

An earthquake measuring three on the Richter scale jolted Ha Giang city in the northern border mountainous province of the same name on November 28.

Foreign fans congregate at Hanoi beer hub for 2022 World Cup

German and Spanish fans make their presence felt on backpackers street Ta Hien in Hanoi’s Old Quarter on November 28, supporting their respective countries at the ongoing 2022 FIFA World Cup underway in Qatar.

AI - the future of retail

Technology is changing the retail sector, with artificial intelligence (AI) shaping shopping centers and stores of the future.

Hanoi to celebrate New Year with drone light show and marathon

A countdown event, concert, drone light show and an international marathon will be held in Hanoi to celebrate the New Year 2023.

How will Vietnam escape the 'middle-income trap'?

Vietnam aims to become a higher average income country and a high income country by 2035 and 2045. However, to reach that goal, it will have to overcome challenges, especially institutional ones.