The case has sent shockwaves through Vietnam’s investment community, as Trinh Van Tuan has long been considered one of the country’s most prominent figures in the electricity construction sector.

Born in 1962, Tuan trained as an electrical engineer and later earned a Master of Business Administration degree.

He spent more than two decades at PC1, rising through the ranks from employee to chairman.

In 2007, he was appointed board member and chief executive of Power Construction Joint Stock Company No.1, the predecessor of today’s PC1 Group.

By 2010, he officially became chairman, a position he had held continuously until the recent prosecution.

The legal developments come as PC1 shares had already been suffering a prolonged downturn.

Since early March, the company’s stock has fallen from around VND31,400 to approximately VND18,000 per share, wiping out nearly 43% of its market value.

During the past 10 trading sessions alone, PC1 shares declined in seven sessions, including three consecutive limit-down sessions between April 23 and April 28.

The selloff erased roughly VND5.5 trillion ($216 million) from the company’s market capitalization despite broader market conditions remaining relatively positive.

Before the prosecution, Trinh Van Tuan ranked among the wealthiest individuals on Vietnam’s stock market.

As of the end of 2025, he owned more than 87.9 million PC1 shares, equivalent to nearly 21.4% of the company’s charter capital.

At peak valuation, the stake was worth almost VND2.8 trillion ($110 million).

Based on current market prices, however, the value of his holdings has dropped to around VND1.58 trillion ($62 million).

Several members of his family also hold substantial stakes in PC1.

His wife, Le Thi Thoi, owns more than 7.7 million shares, while his daughter, Trinh Khanh Linh, controls more than 4 million shares.

According to company disclosures, Trinh Van Tuan received compensation of around VND6.6 billion ($259,000) from PC1 in 2025.

PC1’s dominant role in Vietnam’s power sector

PC1 is widely regarded as one of Vietnam’s leading companies in electricity construction and power transmission infrastructure.

With more than 60 years of operations, the company has participated in numerous major energy projects, including ultra-high-voltage transmission systems of up to 500kV and large-scale EPC contracts.

Beyond its core electricity construction business, PC1 has aggressively expanded into renewable energy, mining and industrial real estate.

The company currently operates seven hydropower plants and is developing two additional projects with a combined capacity of around 200MW.

Its 144MW wind power cluster in Quang Tri has already entered operation, creating a relatively stable revenue stream.

PC1 has also signaled plans to expand into solar power and other emerging energy sectors.

Mining has become another strategic pillar.

PC1 owns more than 57% of Tan Phat Minerals JSC, which operates a nickel and copper mining project in Cao Bang province with an annual processing capacity of around 600,000 tons.

The project entered operation in 2023 and has been viewed as a long-term growth driver.

In industrial real estate, PC1 has invested in multiple industrial parks, including Yen Phong, VSIP, Nomura 1 and Nomura 2, benefiting from Vietnam’s manufacturing relocation wave and growing infrastructure demand.

Company insists operations remain stable

Despite the criminal proceedings, PC1 said in a statement that all operations remain stable and uninterrupted.

The company said it respects the law and is fully cooperating with authorities throughout the investigation process.

PC1 added that authorities had allowed the company to transfer responsibilities from the prosecuted individuals to other senior personnel to ensure continuity in governance and operations.

According to the company, its core business segments continue to operate independently, and no major disruptions have been recorded in energy production, industrial operations or domestic and international projects.

PC1 said all projects, factories and plants remain operational, while obligations to customers, partners, banks, investors and employees continue to be fulfilled.

Among those prosecuted alongside Trinh Van Tuan are board member and chief executive Vu Anh Duong, deputy chief executive and board member Nguyen Minh De, chief accountant Tran Thi Minh Viet, deputy chief executives Vo Hong Quang and Dang Quoc Truong, as well as deputy chief executive Trinh Ngoc Anh, who also serves as chairman of Tan Phat Minerals.

Mounting pressure ahead

Although PC1 posted strong financial results in 2025, analysts believe the company now faces growing operational and reputational challenges.

The group reported consolidated revenue exceeding VND13 trillion ($510 million) in 2025, up nearly 30% year-on-year, while after-tax profit surged more than 90% to around VND1.356 trillion ($53 million).

Growth was driven primarily by strong performance in electricity construction and stable contributions from the energy business.

However, analysts warn that 2026 may become increasingly difficult.

Hydropower operations remain highly dependent on weather conditions, while mining activities face risks linked to ore quality and extraction efficiency.

The company’s core electricity construction business is also under pressure from rising input costs and elevated interest rates, which could increase financing expenses.

The cyclical nature of the construction industry means financial performance remains heavily dependent on the timing and progress of major infrastructure projects.

Corporate governance concerns had already emerged before the latest prosecutions.

In the first quarter of 2026, inspectors reportedly flagged the company for using part of its bond proceeds improperly and for delays in information disclosure.

The prosecution of multiple senior executives is expected to place further strain on investor confidence and the public image of one of Vietnam’s largest electricity transmission construction companies.

Manh Ha - Tam An