VIETNAM'S stock exchange has fired the head of Ho Chi Minh City's bourse over allegations of "very serious" shortcomings at work, as authorities stepped up its investigations into the stock market.
Le Hai Tra is the latest casualty in the probe that began in March amid alleged wrongdoings and poor oversight by officials that resulted in market manipulation and "illicit profits" between 2015 and 2020.
The Ho Chi Minh City exchange said on Friday that Tran Anh Dao, the exchange's deputy general director, will now be in charge of the bourse's executive board.
According to a Bloomberg report, Vietnamese authorities have launched a wide-ranging crackdown on stock violations with Vietnam pushing for more transparency as it looks for a stock market status upgrade and greater foreign investment.
Tra's dismissal follows that of State Securities Commission Chairman Tran Van Dung on Thursday for committing "serious wrongdoings." Vietnam's powerful Communist Party's Central Inspection Committee had also dismissed Tra and discharged Dung from all positions in the party.
Tra, 48, was appointed general director of the Ho Chi Minh City Stock Exchange in February 2021 and has a master's degree in public administration from Harvard University.
The Finance Ministry said in a statement that disciplinary action have also been taken in the form of warnings against Vu Bang, former securities commission chairman; Nguyen Thanh Long, chairman of the members' council of the Vietnam Stock Exchange; and Nguyen Son, chairman of the Vietnam Securities Depository.
Since late March, police have detained a number of company executives including the former chairman of Bamboo Airways and its parent FLC Group JSC Trinh Van Quyet, Tri Viet Securities former Chief Executive Officer Do Duc Nam and Louis Holdings former Chairman Do Thanh Nhan.
The securities commission had also fined the FLC Group 100 million dong (US$4,300) for failure to disclose required information and placed Hanoi-based Kenanga Vietnam Securities JS Corporation under special control between May 19 and Sept. 18.
According to the Vn Express daily, Dung is the highest ranking casualty and he will be temporarily replaced by Deputy Finance Minister Nguyen Duc Chi.
Deputy minister Chi said recent violations of certain officials at the SSC were "personal", and that authorities have prepared additional personnel and plans to ensure market safety and stability.
He also pointed out some upcoming solutions to stabilise the market, such as upgrading the trading system for the main bourse, which is expected to complete this year.
Dung, 57, was appointed chairman of the SSC in July 2017 and was earlier the chairman of the Hanoi Stock Exchange (HNX) and general director of the HoSE.