“children of the powerful”

Socialism Or Your Money Back earlier post upon the Chinese wealthy could equally apply to Vietnam

Prime minister Nguyen Tan Dung's daughter, Nguyen Thanh Phuong, is one of the country's richest people, running Viet Capital Asset Management and a brokerage firm, Viet Capital Securities. Her brother is Vietnam's deputy construction minister. Sacombank's outgoing chairman appointed his son, Dang Hong Anh, vice-chairman.

A WikiLeaks cable from United States consul general in Ho Chi Minh City, highlighted their corporate career. “..the many doors that opened for her and her two brothers are indicative of how the Vietnamese political elite ensures that their progeny are well placed educationally, politically and economically.”

In April, To Linh Huong, the 24-year-old daughter of leading politburo member To Huy Rua, was appointed chair and chief executive of state construction company Vinaconex. “Taking a little girl who just graduated from journalism school and making her the director general of a construction company is no different than making a one-legged man a soccer goalie,” read a comment on Pham Viet Dao, a popular blogger.

In reporting the collapse of one of the largest state-owned conglomerates, Vinashin, the state-run news media revealed that at least three family members of the company’s chairman, Pham Thanh Binh, held senior positions in the company, including his son and brother.

 Carlyle A. Thayer, a leading expert on Vietnamese politics who has a database of Vietnamese leaders and their family members said  “There’s a growing resentment, particularly among the have-nots, toward the wealthy.”
 As criticism has mounted, some of the relatives of Communist Party officials have stepped back from high profile roles. Ms. Huong left her state-run company in June, three months after her appointment, and the daughter of the prime minister recently left one of her posts, at a private bank.

Vietnam is now witnessing the rise of a new generation of businessmen – the young 7X and 8X ones (who were born in 1970s and 1980s), who, backed by the powerful families, are managing the enterprises capitalized at trillions of dong.

On September 18 the Board of Directors of the Asia Commercial Bank (ACB) approved the resignation of Tran Xuan Gia, 73, from the post of Chair of ACB. The person who has taken over the office is Tran Hung Huy, 34, the father of the former President of ACB Tran Mong Hung. Nguyen Thanh Toai, Deputy General Director of ACB, who is the spokesman of the bank, when talking about the newly appointed President, said Huy is young, but he is really a hereditary banker, the son of the founder of the bank, a member of the family which owns the highest proportion of the bank’s stakes.

Dang Hong Anh, President of the Saigon Thuong Tin Real Estate Company (SCR) is also a young hereditary banker. Anh, born in 1980, is the son of Dang Van Thanh, President of Sacombank. Anh not only has a famous father, but a well-known mother as well, who is the Chair of a series of businesses, namely Thanh Thanh Cong, Bien Hoa Sugar, Deputy Chair of SCR. Anh is not only the President of SCR, but also the Member of the Board of Directors at Sacombank. Anh’s younger sister Dang Huynh Uc My, born in 1981  became Chair of Bourbon Tay Ninh Company (SBT). SBT is now one of the top 30 blue chip shares on the HCM City bourse.

Tram Khai Hoa and his brothers of Tram Be family, a powerful businessman, are another example. Hoa is believed to be the youngest businessman among the most powerful entrepreneurs at this moment. Hoa, born in 1988, is now believed to be the youngest stock millionaire.