During the inspections in 2017, due to wrongful declaration resulting in the lack of tax payment, Vinaconex was fined for tax arrears of nearly VND5 billion ($217,391).
On the basis of the State Audit Office of Vietnam’s conclusions, the Hanoi Tax Department issued Decision No.81243/QD-CT-KTT6 on December 11, 2018 on sanctioning tax administrative violations of Vinaconex (VCG on HNX). Specifically, due to the wrongful declaration, Vinaconex is subject to a fine of 20 per cent of the total missing tax amount, equalling to VND775 million ($33,700).
In addition, according to the conclusions of the SAV, VCG has to pay additional corporate income tax of VND3.9 billion ($169,565) and VND300 million ($13,043) for late payment. Therefore, the total fines and tax arrears VCG has to pay is nearly VND5 billion ($217,391).
On December 14, Vinaconex paid the fines in full.
According to Decision No.405/2018/QD-HDQT on December 13, Vinaconex's board of directors has recently approved the resignation of general director Do Trong Quynh. At the same time, Nguyen Xuan Dong was appointed as general director of the corporation instead.
Vinaconex also announced on its website replacing Do Trong Quynh with Nguyen Xuan Dong as legal representative.
Nguyen Xuan Dong is the chairman cum general director of An Quy Hung Co., Ltd., who spent VND7.367 trillion ($320.3 million) from the company's funds to buy 255 million shares, equivalent to 57.71 per cent of Vinaconex's shares, on November 22.
In 2018, Vinaconex set the goal of increasing total revenue by 9.3 per cent on-year. Accordingly, Vinaconex expects its revenue to reach VND19.44 trillion ($845.22 million) and after-tax profit to hit VND1.3 trillion ($56.5 million).
On the stock market, VCG closed the December 17 trading session at VND21,400 ($0.93) per share, bringing its market capitalisation to about VND9.452 trillion ($410.96 million).