VietNamNet Bridge - Once the richest millionaire on the stock market, making big money in many business affairs and earning nearly $1 million a day sometimes, Dang Thanh Tam is now pursued by bad luck.

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Mr Dang Thanh Tam (left) 

Tam received more bad news last week.

Tam’s once famous mineral company, SQC, reported losses for the third consecutive year, while facing the danger of compulsory delisting. 

The company, upon its establishment, was expected to help make a breakthrough in the business for Tam, who had been successful in the field of industrial real estate and considered an expert in calling for foreign direct investment.

It had made huge profits while other domestic companies and Tam’s other businesses met difficulties in 2012. However, things changedin the last three years.

Tam’s once famous mineral company, SQC, reported losses for the third consecutive year, while facing the danger of compulsory delisting. 
SQC reported surprisingly low revenue of VND1.6 billion in the fourth quarter of 2015 and VND5.4 billion for the whole year 2015. Though the loss in the year decreased to VND100 billion from VND125 billion in 2014, analysts say the recovery is far away.

SQC’s poor performance is bad news for Tam as the biggest shareholder. His other businesses also hold large proportions of stakes in SQC. The Kinh Bac Urban Development Company (KBC), for example, holds 7.07 percent of stake, while SaigonTel (SGT) holds 5.84 percent.

Tam recently got involved in a scandal in the education sector. Hung Vuong University, of which Tam is President, on March 25 released 25 decisions on terminating labor contracts with the school’s workers and lecturers.

Prior to that, on February 25, the school also issued decisions to terminate labor contracts with 79 other workers. Many of the sacked workers have lodged complaints to state management agencies, asking for help.

Hung Vuong could not enroll students in the last four years, and therefore, could not have revenue to cover expenses.

SaigonTel, where Tam is the biggest shareholder with a 24 percent stake and Tam’s KBC Group with 22 percent, has also been facing big difficulties recently. 

In late 2015, SGT was imposed a fine of VND85 million for tardiness in information exposure as required by law. The company is reported as taking loss or making low profit for many years.

Meanwhile, Tam reportedly struggled with KBC’s debts worth trillions of dong.

The big loss at KBC, SGT, ITA and the ineffective investments in Navibank have dealt strong blows to Tam.

An analyst noted that Tam seems to have withdrawn from banking, the sector that Tam called ‘double edged knife’. 

The huge debt has decreased considerably. However, Tam is still facing big problems caused by his decision to invest in too many different fields.


HTu