Since the local showbiz synchronized with those in other countries some 15 years ago, disputes on contract termination have been taking place between exclusive singers and their managing companies, who demand that they stick to punishing, privacy-intruding policies while paying them poorly.

The latest example is the dispute between Tronie, whose real name is Ngo Trong Thanh, the rapper and choreographer of emerging boy band 365, and VAA, the band’s managing company, run by model-turned-actress Ngo Thanh Van. Tronie announced his decision to quit the band some months ago, but the two sides have yet to reach a deal regarding Tronie’s compensation for untimely terminating the contract.

Part of VAA’s stern, demanding management policies towards their exclusive singers, recently revealed by Van, can perhaps partially explain for Tronie’s decision.

Van said she modeled her 365 band after a hugely popular South Korean band and based the contract terms on that of the Korean band’s management company.

Stringent and privacy encroaching

According to Nguyen Quang Huy, director of WePro Co., which was successful with such bands and singers as HAT, Ung Hoang Phuc, Pham Quynh Anh and We Boys, most other entertainment companies also have highly confidential, exclusive contracts with exacting, privacy-infringing terms, though they are far less rigorous than those dictated by their Korean counterparts. 

Most exclusive singers and bands usually live together in a house designated by their management companies partially to keep check on their personal, training and performing schedules.

They can only visit their families or friends with the companies’ permission and can’t freely use cell phones or the Internet. Even their personal dressing styles and diets must also be tailored to suit the companies’ requirements.

The companies also apply stern sanctions when their exclusive singers violate the rules.

According to Nhac Xanh Co., which was successful with GMC band, singers Khanh Ngoc and Nhat Tinh Anh, those who violate or prematurely terminate the contracts have to pay VND1 billion (US$47,538) in compensation. They pay VND10 million in advance so that deductions can be made in case they breach the regulations.

According to VAA, Tronie’s disclosure on his personal page of the disagreements between 365 band members and with the company as well as his intention to quit the band is a breach of the contract, which he would have to pay VND30 million as a penalty. If the breach is repeated for three times, the penalty will be three times higher than Tronie’s incomes in one year.

The contract termination doesn’t always go smoothly according to the contract terms either.

According to Le Thi Hoai Giang, VAA’s lawyer, the delay in the company’s contract termination with Tronie is put down to the difference between the high penalty Tronie has to pay and his actual financial capability.

So they’re still working out on the reasonable sum for both sides and may take legal action to settle the matter.

Nhac Xanh Co. is also in the arduous process of settling the contract termination with GStar band.

“We have clear contract terms regarding premature contract ending. However, some singers tend to make a mess of this and file complaints to create scandals,” said Nguyen Duy Khanh, CEO of Nhac Xanh Co.

The company’s former exclusive singer Vuong Anh has been filing complaints against the company though Anh himself ended the contract.

“Our contract is valid for six years, but Anh ended the contract only after six months. Based on the contract, he would have to pay us VND1 billion (US$47,538) in compensation, but considering his limited financial capability, we only demanded VND40 million for the expenses we had spent on him. However, he refused and we had no choice but to take this case to court,” Khanh added.