Vimico General Director Trinh Van Tuan Prosecuted for Receiving Bribes as Subsidiary Records Record-Breaking Profits

Vietnam Minerals Corporation (Vimico, UPCoM/HNX: KSV), a key subsidiary of the Vietnam National Coal – Mineral Industries Holding Corporation (TKV), has announced major leadership changes alongside an unexpected corporate development involving its top executive. The unfolding situation presents a complex picture of corporate governance disruption intersecting with extraordinary financial performance driven by soaring global commodity prices.

Major Leadership Shakeup at Vimico

On October 30, Vimico officially disclosed to the public and regulatory authorities that it received an official decision to prosecute and detain Mr. Trinh Van Tuan, the company’s General Director. According to the disclosure, the investigative authorities initiated legal proceedings against Mr. Tuan under Article 354 of the Penal Code of Vietnam, concerning the crime of "Receiving Bribes."

In response to the sudden vacancy at the executive helm, Vimico’s Board of Directors moved swiftly to ensure operational continuity. The board passed a resolution officially relieving Mr. Tuan of his duties as General Director, effective October 29, 2026. Simultaneously, Mr. Ly Xuan Tuyen, currently serving as the Deputy General Director, was appointed to assume the duties and legal representation of the General Director.

The abrupt departure of Mr. Tuan marks a dramatic turning point in a long career within the state-owned mining sector. Born in 1972 and trained as an electrical-chemical engineer specializing in power supply, Mr. Tuan began his journey with Vimico back in 1992. Over more than three decades within the organization, he climbed the corporate ladder, holding various management positions at major mining units, including the Sin Quyen Copper Mining Company and the Lao Cai Copper Smelting Company.

He was promoted to Deputy General Director in August 2015 and subsequently took over the role of General Director in March 2018. His career progression continued into April 2025, when he was elected to the Board of Directors of KSV for the 2025–2030 term. The sudden legal action against such a seasoned industry veteran has sent ripples through the domestic mining and financial sectors.

Extraordinary General Meeting Summoned

Concurrent with the announcement regarding Mr. Tuan, Vimico’s Board of Directors issued a resolution on October 30 approving the convocation and organization of an extraordinary General Meeting of Shareholders (GMS) for the year 2026.

According to the corporate notice, the final registration date to establish the list of shareholders eligible to attend the meeting is set for November 20, with the meeting itself scheduled to take place on December 15, 2026. The gathering will be hosted at the corporation’s headquarters located at No. 3 Duong Dinh Nghe Street, Yen Hoa Ward, Cau Giay District, Hanoi.

While the official resolution states that the meeting will deliberate on matters within the ultimate jurisdiction of the GMS under the Enterprise Law and the corporate charter, company management has not yet released a detailed agenda specifying the exact topics that will be presented to shareholders. Market analysts, however, anticipate that the meeting will address crucial governance adjustments, interim leadership stabilization, and strategic oversight in the wake of the leadership crisis.

Record-Breaking Financial Performance in the Third Quarter

While corporate governance faces unprecedented headwinds, Vimico’s operational and financial metrics tell a story of remarkable prosperity. For the third quarter of 2026, KSV reported a staggering financial performance, bolstered by favorable international and domestic commodity pricing trends.

The corporation recorded net revenue of nearly VND 9,453 billion, representing an explosive 144% increase compared to the same period in the previous year. Bottom-line profitability grew at an even more dramatic pace. Profit after tax reached nearly VND 2,566 billion, marking a 332% surge year-over-year. Furthermore, net profit attributable to the parent company (net profit) hit nearly VND 2,409 billion, soaring to roughly four times the figures recorded in the corresponding quarter of 2025.

Management explained that this monumental earnings expansion was primarily driven by sharply higher average selling prices across all of the corporation’s core product lines during the first nine months of the year.

A closer examination of the sales data reveals the extent of the price surge:

• Copper cathode prices reached an average of VND 355.8 million per ton, representing an increase of VND 104.5 million per ton compared to previous benchmarks.
• Gold prices climbed to VND 3.696 billion per kilogram, an increase of VND 1.217 billion per kilogram.
• Silver prices spiked to VND 53.6 million per kilogram, up by VND 30.9 million per kilogram.
• Selling prices for magnetite iron ore concentrate and byproduct zinc also posted substantial gains year-over-year.

For the first nine months of 2026 as a whole, Vimico accumulated net revenue of nearly VND 14,686 billion, up 35% year-over-year. Consolidated profit after tax reached nearly VND 3,462 billion—a 153% jump—while net profit expanded by 136% to nearly VND 3,387 billion.

Core Assets and Long-Term Resource Dominance

Vimico operates as a specialized mining titan under the umbrella of the Vietnam National Coal – Mineral Industries Holding Corporation (TKV), which maintains a dominant ownership stake of approximately 98% in the enterprise.

The corporation holds a foundational role in Vietnam’s non-ferrous and precious metals mining sector. Its primary product portfolio encompasses copper cathode, gold, silver, zinc byproduct, tin byproduct, ore, pig iron, and steel billets.

According to historical corporate prospectuses, Vimico and its subsidiaries control an extensive network of strategic mines across the country. These include the Sin Quyen copper mine and Bat Xat zinc mine in Lao Cai; the Cho Dien lead mine in Bac Kan; the Cho Lang Hit and Coc Duong mines in Thai Nguyen; and the Na Rua iron mine in Cao Bang. Among these, the Sin Quyen deposit stands out as the largest operational copper mine in Vietnam.

These assets represent considerable national resource reserves with long remaining exploitation horizons. Core copper mines maintain remaining commercial lifespans of 10 to 20 years. Zinc mines have approximately a decade of reserves left, while select tin, iron, gold, and rare earth assets boast operational runways exceeding two decades.

In addition to its current production portfolio, Vimico holds the investment mandate for the Dong Pao rare earth ore processing project in Lai Chau Province. Spanning nearly 133 hectares, the Dong Pao project represents the largest rare earth deposit in Vietnam, with total estimated rare earth oxide reserves exceeding 11.3 million tons—accounting for roughly half of the country’s entire rare earth resource endowment.

Market Response and Stock Valuation

KSV shares first became publicly traded on the UPCoM exchange in mid-2016 before successfully transitioning to formal listing on the Hanoi Stock Exchange (HNX) at the end of 2022.

Despite the shocking news regarding the prosecution of its former General Director, investor sentiment on the stock market remained resilient, supported by the company’s stellar financial fundamentals. At the closing bell of the trading session on October 30, KSV shares closed flat at VND 109,500 per share. At this market price, Vimico commands a total market capitalization of approximately VND 32,850 billion, positioning it as one of the most valuable industrial and mining enterprises listed on the northern bourse.

Broader Implications and Outlook

The simultaneous occurrence of severe legal action against a top corporate executive and record financial profitability presents a paradox for market observers. On one hand, Vimico demonstrates exceptional operational leverage, capitalizing on high global demand and favorable pricing for critical minerals, gold, and silver. The financial cushion provided by its multi-billion-dong quarterly profits ensures robust capital preservation and liquidity.

On the other hand, the prosecution of the General Director under serious criminal charges of corruption introduces a layer of governance risk and administrative uncertainty. The upcoming extraordinary General Meeting of Shareholders in December will serve as a crucial platform for the board and parent group, TKV, to reassure investors, restore administrative stability, and outline a transparent path forward for corporate governance and long-term project execution, particularly regarding strategic national assets like the Dong Pao rare earth development.