Vietnam. Government to review appointment of Sabeco Deputy CEO

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Deputy Prime Minister Truong Hoa Binh has directed the Ministry of Industry and Trade (MoIT) to review and resolve a proposal from the Vietnam Association of Financial Investors (VAFI) relating to the appointment of Mr. Vu Quang Hai as Deputy CEO of the Saigon Beer Alcohol Beverage Joint Stock Corporation (Sabeco).

The Deputy PM asked MoIT to inform VAFI of the results of its review and then report to the Office of the Government before July 30.
VAFI Deputy Chairman Nguyen Hoang Hai told VET that the direction from the Deputy PM would accelerate the investigation and its results would come soon.
“We reaffirm that our allegations are correct and convincing,” he added.
He also told VET that on June 21 the association sent documents to MoIT and the State Securities Commission asserting that Mr. Vu Quang Hai, the son of the former Minister of Industry and Trade Vu Huy Hoang, was not eligible to take on the position of Deputy CEO of Sabeco.
The documents also indicated that Mr. Vo Thanh Ha, who is now Chairman and CEO of Sabeco and the representative of State capital in the beverage maker, is also not eligible to be a Board Member.
Chairwoman of the National Assembly’s Judicial Affairs Committee Le Thi Nga said that negative public opinion has increased regarding certain officials in some ministries.
“It is not difficult to determine whether they are eligible to take up positions,” she said on July 11, adding that the government should coordinate with the Central Committee’s Inspection Commission to clarify the matter.
As VET reported on June 14, VAFI called for the dismissal of Mr. Hai as Deputy CEO of Sabeco due to his inexperience and the “illegality” of his appointment.
It said that the appointment was contrary to current State regulations and asked MoIT to look into the issue.
Regarding the equitization of MoIT enterprises, VAFI believes there are problems in the Hanoi Alcohol and Beverage Corporation (Habeco) and Sabeco being equitized nearly eight years ago but not yet moving under the management of the State Capital Investment Corporation (SCIC), as requested several times.
Responding to VAFI, Minister of Industry and Trade Tran Tuan Anh directed relevant agencies in mid-June to review the appointment of Mr. Hai as Deputy CEO of Sabeco.
Sabeco has charter capital of VND6.4 trillion ($288 million), with State capital accounting for 89.59 per cent.
Mr. Ha, who was appointed as the representative of State capital in Sabeco, has been Chairman and CEO since January 1 this year.
According to Sabeco’s business report, in the first four months of this year beer consumption reached 517 million liters, an increase of 17 per cent over the same period of 2015.
Its pre-tax profit was estimated at VND1.25 trillion ($56.2 million), down 27 per cent year-on-year.