They are alleged to have violated investment regulations and caused losses related to state property.

Police announced Thursday that the warrants have been issued against Mai Van Tinh, former board chairman of Vietnam Steel Corporation (VNSTEEL) and Dau Van Hung, its former general director.

The former executives are being investigated for violations of the law that "caused serious consequences".

The state currently holds 95 percent of VNSTEEL's chartered capital. The corporation and its subsidiaries and affiliates meet 50 percent of the domestic market's construction steel demand, according to its 2018 financial report.

Tran Trong Mung, former general director of Thai Nguyen Steel Company (TISCO); Tran Van Kham, the firm's former board chairman; and Ngo Sy Han, its former deputy general director, are also being investigated for violations of investment laws on construction with serious consequences.

They are also being investigated for violations of laws relating to the management and use of state-owned assets leading to losses or wastefulness.

The violations relate to a production expansion project by TISCO with a total capital of over VND3.8 trillion (more than $242 million). The project, approved in 2005, had two main packages, one of them an EPC package regarding development of a metallurgy processing line.

The EPC package was auctioned to the China Metallurgical Group Corporation (MCC) for over $160 million.

However, the Government Inspectorate discovered in February that the project’s total capital had been illegally altered by TISCO, from over VND3.8 trillion to VND8.1 trillion.

Furthermore, at the time of discovery, TISCO had already paid MCC over 92 percent of the total value of the project, but the project was nowhere near completion. As of 2013, the EPC contractor MCC and  contractors had stopped all construction activity.

Since then, some project equipment has been damaged, negatively affecting the project’s progress and quality, causing investment capital losses, inspectors said.

VNSTEEL is currently the biggest shareholder in TISCO with a 65 percent stake.