Setopia "No Disruptions Expected in Rare Earths Value Chain Establishment Project"

Setopia recently dismissed concerns regarding the local Ministry of Public Security’s investigation and prosecution of Vietnamese rare earth-related companies. On the 24th, Setopia stated that there would be no disruption to the rare earth value chain construction project it is currently undertaking.

According to foreign media reports on the 20th, Doan Van Huan, chairman of Thai Duong Group Joint Stock Company, and Nguyen Van Chinh, deputy director, were prosecuted by the Ministry of Public Security for violating regulations on natural resource research, exploration, and development, as well as accounting regulations.

Additionally, Dang Tran Chi, CEO of Hop Thanh Phat Company, accountant Pham Thi Ha, and chairman of the board Luu Anh Tuan were prosecuted for violations of accounting regulations.

Doan Van Huan, chairman of Thai Duong Group, was prosecuted on charges including the illegal sale of rare earth ore from mines operated in Yen Bai province in northern Vietnam. The Ministry of Public Security raised allegations against Luu Anh Tuan, chairman of the board of Hop Thanh Phat Company, which is linked to tax evasion amounting to 7.5 billion VND (approximately 400 million KRW) related to Thai Duong Group’s rare earth ore sales.

With Luu Anh Tuan, chairman of Vietnam Rare Earth JSC (VTRE), a partner of Setopia, being prosecuted as a related party, concerns have arisen regarding the rare earth business with Setopia. However, both VTRE and Setopia maintain that there will be no disruption to the project.

A VTRE representative stated, “Luu Anh Tuan has stepped down from frontline management at VTRE and plans to actively clarify and respond to the related trial. Taking this opportunity, we plan to resolve the issue through personnel and organizational restructuring for management reform and by recruiting experts to establish an advanced national accounting system, thereby promoting transparent management activities.”

Meanwhile, VTRE’s shareholders have reorganized the organization centered on Setopia’s CEO Seo Sang-cheol, their partner, and completed the process of delegating all authority over company operations to CEO Seo.

A Setopia representative said, “With the authority to operate VTRE granted due to this incident, it seems that a turnaround situation has been created where unified and swift decision-making can be made regarding the rare earth business being promoted in Vietnam. We believe there will be no significant impact on the ongoing projects.”

They added, “Having confirmed the trust of VTRE’s major shareholders, we will focus on enhancing shareholder value by properly establishing the purpose and direction without losing sight of the core essence of the business.”

This content was produced with the assistance of AI translation services.