GELEX Electric, CADIVI, and THIBIDI Seek Shareholder Approval to Dismiss Mr. Dang Phan Tuong Following Criminal Investigation

Hanoi — In a synchronized corporate governance move, the boards of directors of GELEX Electric and its key manufacturing subsidiaries, CADIVI and THIBIDI, have officially initiated a written consultation process to seek shareholder approval for the dismissal of Mr. Dang Phan Tuong from his position as a member of the board of directors. The decision comes in the wake of legal proceedings initiated against Mr. Tuong by investigative authorities, a development that has prompted the corporate group to take swift administrative action to preserve compliance, governance standards, and operational stability.

The move marks a significant administrative separation between the personal legal challenges faced by Mr. Tuong and the ongoing commercial operations of the prominent Vietnamese electrical equipment manufacturing conglomerate. According to official corporate disclosures issued by GELEX Electric, the rationale behind the proposed dismissal is straightforward: Mr. Tuong no longer satisfies the statutory criteria, qualifications, and regulatory prerequisites required to serve as a member of the board of directors under prevailing Vietnamese enterprise laws and internal corporate governance charters.

Chronology of Events and Legal Proceedings

The administrative actions taken by GELEX Electric and its subsidiaries follow closely on the heels of enforcement actions by state investigative bodies. Mr. Dang Phan Tuong was recently prosecuted by the Investigative Police Agency under the Ministry of Public Security. The criminal investigation centers around alleged violations occurring within the National Power Transmission Corporation (EVNNPT), Power Construction Joint Stock Company No. 1 (PC1), and other related entities.

The legal scrutiny pertains to events, transactions, and decisions originating during periods well before Mr. Tuong assumed any governance or board responsibilities within GELEX Electric or its affiliated companies. Investigators are examining historical procurement, project execution, and financial management practices at EVNNPT and associated firms, where Mr. Tuong previously held prominent executive leadership roles.

Upon receiving formal notification of the legal proceedings involving Mr. Tuong, the leadership teams at GELEX Electric, CADIVI, and THIBIDI acted promptly. Recognizing that maintaining individuals under criminal investigation on the board compromises corporate compliance frameworks and stakeholder trust, the respective boards resolved to initiate the formal removal process via written shareholder ballots. This mechanism allows shareholders to vote on the resolution without waiting for an extraordinary general meeting, thereby expediting corporate restructuring and restoring full regulatory compliance to the boards.

Governance Structure and Insulation of Daily Operations

To mitigate market uncertainty and address potential concerns from investors, financial institutions, and business partners, GELEX Electric has issued detailed clarifications regarding Mr. Tuong’s role within the corporate ecosystem.

Management emphasized that Mr. Tuong served exclusively as a non-executive member of the board of directors at GELEX Electric and its subsidiaries. In this capacity, his responsibilities were confined to strategic oversight, board-level deliberations, and governance monitoring. He did not hold executive management positions, nor did he directly participate in the day-to-day business operations, commercial negotiations, or operational management of GELEX Electric, CADIVI, THIBIDI, or their respective production units.

The operational continuity of the group is safeguarded by a robust separation of governance and executive management. Day-to-day manufacturing, sales, procurement, financial management, and cash flow operations are executed by professional management boards operating under established corporate governance mechanisms, internal controls, and delegation matrices. Because Mr. Tuong’s duties were non-executive, his legal situation does not impede ongoing business workflows, plant operations, or supply chain logistics.

Financial Health and Strategic Continuity

Corporate leadership has reiterated that all financial, investment, and business plans across GELEX and its member companies remain fully secured and on track. The production facilities of CADIVI (Vietnam’s premier electrical wire and cable manufacturer) and THIBIDI (a leading transformer producer) continue to operate at full capacity, fulfilling orders for domestic infrastructure projects, industrial clients, and export markets.

Furthermore, capital allocation, debt servicing, and banking relationships remain unaffected. Financial audits and treasury operations are functioning in strict accordance with statutory reporting standards and internal risk management policies. GELEX management has confirmed that ongoing and planned capital expenditures, research and development initiatives, and market expansion strategies will proceed without interruption.

In its official communications to the market, GELEX reaffirmed its unwavering commitment to maintaining stable operations, fulfilling all statutory obligations, and honoring contractual commitments to shareholders, institutional investors, commercial customers, suppliers, and financial institutions.

Broader Implications and Market Guidance

The swift actions taken by GELEX Electric, CADIVI, and THIBIDI highlight a growing emphasis on corporate transparency, accountability, and the protection of shareholder value among Vietnam’s leading private economic groups. By swiftly addressing governance vulnerabilities arising from the personal legal troubles of board members, listed enterprises aim to insulate their commercial operations from external legal shocks and maintain high standards of corporate hygiene.

Market analysts note that while news of criminal investigations involving former or current high-profile executives can trigger short-term market sentiment volatility, transparent communication and a clear structural separation between personal legal matters and corporate operations are vital for restoring confidence. GELEX’s proactive engagement with shareholders through written consultations demonstrates a mature approach to crisis management and corporate governance compliance.

As the written shareholder consultation process moves toward completion, GELEX has urged investors, market participants, and media outlets to rely primarily on official, verified information disseminated directly by the enterprise or competent regulatory authorities. By prioritizing official disclosures, the group seeks to prevent the spread of speculative information and ensure that all stakeholders maintain an accurate, fact-based understanding of the company’s robust operational standing.