The Vietnam Association of Financial Investors (VAFI) on July 19 listed five reasons why former Minister of Industry and Trade, Vu Huy Hoang, violated regulations and failed at his job after they failed to receive a response to their demands that the former minister be dealt with.
Former Minister of Industry and Trade Vu Huy Hoang
1. Hoang gave promotions to personnel that do not have sufficient experience or management capacity
According to the VAFI, the chairmen of Hanoi Beer-Alcohol and Beverage Corporation (Habeco), Saigon Beer, Alcohol and Beverage Joint Stock Corporation (Sabeco) and Vietnam National Tobacco Corporation (Vinataba) were not wise appointments. The new chairman of Sabeco had little experience about business administration but was promoted as chairman cum general director anyway. The decisions also showed that no one is enthusiastic with equitisation process.
"This promotions were wrong," a representative of VAFI said. "This was a dangerous move in view of state capital management. Even in private companies, there's no way a father would promote his son into a chairman if he is incompetent. It was a suicidal move."
2. Hoang was slow in transferring equitised companies to the State Capital Investment Corporation
Over a decade ago, when Hoang Trung Hai was the minister of Industry and Trade, the equitisation process at many companies went smoothly and they were quickly transferred to the SCIC. But the situation is completely different when Vu Huy Hoang was in office.
The VAFI acknowledged that there were shortcomings in the operation of SCIC but said that it was still more capable than other agencies.
3. Companies managed by the Ministry of Industry and Trade avoided listing on the stock exchange
VAFI pointed out Sabeco and Habeco as prime examples. VAFI's representative said they supposed Vu Huy Hoang must have been urged to speed up the equitisation process and listing by the prime minister but avoided the issue.
4. The equitisation process stagnated when Hoang was in office
Again, equitisation process was a main concern and one in which Hoang failed. VAFI continued comparing the activities under the reign of minister Hoang Trung Hai with Hoang's era.
The Ministry of Industry and Trade has the highest amount of sub-companies that are working in key sectors. During the 2010-2015 period they had more advantages but recorded disappointing results compared to the period 2002-2007.
5. The promotion of Hoang's son as the deputy CEO of Sabeco was illegal
VAFI previously sent a letter to the Ministry of Industry and Trade, urging the ministry to inspect the appointment of former minister’s son, Vu Quang Hai, as deputy CEO of Sabeco in early 2015.
Between 2011 and 2012, under Hai’s management, PetroVietnam Finance Investment JSC racked up losses of VND220 billion (USD10 million) out of total registered capital of USD13.5 million.
After that, he worked for a short time at Vietnam Trade Promotion Agency. During this time he also worked as supervisor at Vinataba. VAFI said the Vinataba promotion alone was illegal. According to the enterprise law, members of the supervisory board must not be spouse, parents, adopted parents, adopted children, siblings of another member on the director board or other managers.
VAFI then frankly said Hai worked at the Vietnam Trade Promotion Agency not because of his ability or contribution. It's only to make his profile look good to ease his promotion to be deputy CEO at Sabeco.
This is an abuse of power and contrary to the anti-corruption law issued in 2005.