Trinh Van Quyet, chairman of the board of directors of FLC Group and chairman of Bamboo Airways (QH, Hanoi Noi Bai International), has been barred from leaving Viet Nam for one month while he assists investigators on verifying some issues related to his various businesses and projects, local media reported.
The Ministry of Public Security’s decision to bar the entrepreneur, believed to be one of the richest people in the country, took effect on March 26 sparking speculation on social media, but it was not until the afternoon of March 26 that investigators officially confirmed the news. However, no further details were given.
The rumours fuelled a massive sell-off of FLC Group stock causing the share price of the company, one of the country’s biggest multi-industrial conglomerates, to drop to the floor and prompting many other stocks to also fall sharply.
It is the second time this year that shares in the group have experienced big swings, affecting the general market in Viet Nam. On January 10, a large number of FLC shares he held were sold in a move that was considered secretive as he did not disclose information on the sale before making the transaction. The case spooked investors, leading to a loss of liquidity at FLC Group and other companies.
The authorities consequently fined Trinh VND1.5 billion dong (USD65,800) and suspended him from stock trading for five months. Transactions related to the sale were cancelled and investors refunded.
Trinh and FLC Group hold 80% of the shares of Bamboo Airways, which commenced flight operations in January 2019 and has quickly ramped up its registered share capital and its fleet as it prepares to scale up its intercontinental network starting with Hanoi Noi Bai International-Melbourne Tullamarine and Ho Chi Minh City-Sydney Kingsford Smith on March 28 and 29, respectively. The rapid growth has prompted the Vietnamese government to try to rein in its ambitions.
