Corruption Crackdown in Vietnam Has Lead to the Arrest of a Securities Firms CEO

Prime Minister Pham Minh Chinh ordered the crackdown.

The allegations are market manipulation via 'illegal transactions.'

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Local police detained Tri Viet Securities Chief Executive Officer, Do Duc Nam and Louis Holdings Chairman Do Thanh Nhan. They are suspected to have allegedly manipulated stock prices.

Do Duc Nam is suspected to have been collaborating with executives of two local companies, Louis Capital TGG.HM and Louis Land BII.HN. Together they manipulated the stocks' price by 'illegal' transactions according to the allegations.

Tri Viet Securities issued a statement that is cooperating with the authorities and that the arrest will not change the company's outlook.

More Arrests

In March, investigators arrested the chairman of property and leisure company FLC Group FLC.HM, Trinh Van Quyet, including its Bamboo Airways subsidiary.

Bamboo Airways is among the largest airlines in Vietnam. The allegations are similar to the above, market manipulation.

Quyet is also suspected to have been concealing information on stock transactions after selling part of his stake in the company. Two of his sisters including Vice Chairwoman Huong Tran Kieu Dung, were also arrested.

Shortly after, the chairman of Tan Hoang Minh Group (property company), Do Anh Dung, was arrested. The allegations are corporate bond frauds.

Do Anh Dung, chairman of Tan Hoang Minh Group, another major property firm in Vietnam, on accusation of corporate bond frauds.

Authorities were also told to monitor the issuance and trading of corporate debt. Vietnam seeks to improve its status, which will draw more investors.

Vietnam may be upgraded from frontier market to secondary emerging market, which is why the PM ordered the crackdown.

Compared to Malaysia and Indonesia have, Vietnam's capital markets are deemed as less developed.

Companies in Vietnam are left to ponder who is next in line.