The company, known for its flavorful peanut products, is now at the center of controversy as its former chairman and CEO faces charges. The unfolding legal drama raises questions about the current leadership and future of the brand.

On June 20, the Police Investigation Agency of Di An City (Binh Duong Province) concluded its investigation into the "Non-compliance with Judgment" and "Tax Evasion" case at Tan Tan JSC, a company renowned for its peanut products in Vietnam for decades.

Tran Quoc Tan, the founder of the brand and former chairman and CEO of the company, is accused of tax evasion and non-compliance with a civil judgment. The People's Procuracy of Di An City has charged Tan with these two crimes.

A renowned brand for decades

Tan Tan Peanuts is a household name in Vietnam, known for its rich and crunchy flavor, made from roasted peanuts with creamy coconut essence. The brand stands out for its quality, taste, and affordability, offering a wide variety of flavors.

Established in 1984, Tan Tan expanded in 1997 with a new factory and office in Binh Duong Province, covering over 45,000 square meters. At its peak, Tan Tan had more than 140 distributors and over 40,000 retail outlets across supermarkets and malls, holding 80% market share nationwide.

Tan Tan also exported to major markets, including the US, South Korea, China, Nigeria, and Cuba. The company invested in advanced technology from Italy, the US, Malaysia, Spain, Thailand, Japan, and China, meeting strict FDA requirements.

The company also partnered with local farmers in Binh Duong, Cu Chi (Ho Chi Minh City), Tra Vinh, and Nghe An to provide new peanut varieties, ensuring high-quality raw materials.

A decade-long corporate struggle

Tan Tan Corporation was established in Binh An Ward, Di An City, with three family members as shareholders: Tran Quoc Tan (80% capital), Chau Ngoc Phung (Tan’s wife, 10%), and Tran Quoc Tuan (Tan’s brother, 10%).

Tran Quoc Tan (61 years old) served as the CEO and legal representative, while Phung and Tuan were deputy CEOs.

The shareholder conflict at Tan Tan likely began in 2011 when the company faced losses, and banks foreclosed on most assets. In mid-2011, Tan transferred nearly 3.67 million shares (over 45.8% ownership) to Nguyen Thi Thanh but did not record the transaction in the shareholder register.

Thanh later filed a lawsuit and was recognized as a shareholder by the court in 2013. However, since 2012, Tan Tan failed to hold board elections, suffered losses, and carried debts exceeding its equity, with unaudited financial reports.

In late 2015, Thanh filed another lawsuit demanding an audit of company books, contracts, and financial documents. The court ordered an extraordinary shareholder meeting to elect a new board, but the old board did not comply.

On April 23, 2024, Thanh convened a shareholder meeting, electing a new board.

Leadership transition and financial woes

According to Tan Tan’s board report at the 2024 annual general meeting, Le Hong Phuong was elected chairman and appointed as CEO on May 28, 2022, replacing Tran Quoc Tan, who was dismissed from his roles.

On January 11, 2024, Tan Tan Corporation received a new business registration certificate.

As of January 31, 2024, Tan Tan owed nearly VND 61.8 billion in taxes and almost VND 6.3 billion in social insurance (as of March 2024). The company also owed numerous creditors, including banks, per over 50 legally binding judgments.

The report highlighted that new chairman Le Hong Phuong faced obstructions entering the company premises, which was unlawfully occupied by Tan Tan 2, a company owned by Tran Quoc Gia Phuoc, Tan's son.

According to the investigation, Tan Tan ceased operations in 2013 due to losses. In 2015, Tan leased part of Tan Tan's facilities to Tan Tan 2 until 2030 without paying taxes.

The 2024 shareholder resolution authorized the use of Tan Tan’s 2021 financial report submitted to tax authorities on March 29, 2022, as a basis for preparing the 2022 financial report.

The resolution also mandated the transfer of all company records, assets, brand rights, and other properties to the current board and management for auditing purposes.

Additionally, it called for accountability and compensation for damages caused to Tan Tan JSC and its shareholders.

Manh Ha