Behind the slow payment of money by two businesses winning the Thu Thiem land auction

Sell ​​many projects

City Tax Department. Thu Duc has officially issued a decision on tax enforcement for two businesses winning the Thu Thiem land auction with the amount to be paid in the first installment due to overdue 90 days. Specifically, the Tax Department of Ho Chi Minh City. Thu Duc issued Decision 1572 on the enforcement of a tax amount of VND 1,794 billion with Dream Republic Joint Stock Company and Decision 1573 on enforcement of a tax amount of VND 1,796 billion with Sheen Mega Joint Stock Company.

It is worth mentioning that both Dream Republic Joint Stock Company and Sheen Mega Joint Stock Company are related to Van Thinh Phat Group. Specifically, one of the three founding shareholders of Dream Republic Joint Stock Company is Mr. Dang Minh Thang. Mr. Thang is the General Director of a company called Innoware in which Ms. Truong Hue Van – grandson of Ms. Truong My Lan – is a member of the Board of Directors.

As for Sheen Mega Joint Stock Company, General Director Nguyen Thi Huyen contributed capital to the founding of Dac Van Hung, which indirectly owns shares in the Saigon Peninsula Group, the investor of the Saigon Peninsula project (District 7, District 7). Ho Chi Minh City) but has not been able to deploy for many years and was also introduced by Van Thinh Phat on its homepage…

Van Thinh Phat is a corporation with the largest scale of assets in Ho Chi Minh City with dozens of massive projects and buildings. The fact that the two companies related to Van Thinh Phat repeatedly broke their promises and delayed paying the winning money at the Thu Thiem land auction made many people surprised.

However, in fact, Van Thinh Phat’s debt has increased sharply recently. Specifically, on March 31, Van Thinh Phat related businesses issued 13 trillion bonds with a term of 18-36 months. From the beginning of 2022 to March 31, businesses related to Van Thinh Phat issued VND 36,500 billion, and if including 2021, this figure reaches 81,300 billion.

To reverse debt and maintain the system, Van Thinh Phat continuously sold off real estate projects. Specifically, the project of Saigon Binh An urban area located in An Phu ward, the center of Ho Chi Minh City has been transferred to a third party. Saigon Binh An urban area is owned by Saigon Development and Investment Joint Stock Company (Saigon Development and Investment Joint Stock Company). SDI Corp., a member of Van Thinh Phat’s ecosystem) as the investor, approved more than 20 years ago, with an area of ​​117 hectares.

A series of projects located in the center of Ho Chi Minh City were also transferred to another enterprise, Alpha City at 87 Cong Quynh, Nguyen Cu Trinh ward, District 1 with the highest selling price up to about 10,000 USD/m2. The project is located on a land area of ​​8,320 m2, including 1,076 luxury apartments from 1-3 bedrooms with an area of ​​​​50 – 200 m2.

Similarly, the Alpha Town project located at 289 Tran Hung Dao and 74 Ho Hao Hon, District 1 is also one of the projects with a golden location. Before Alpha King acquired this project, the land plot of more than 4,000 m2 belonged to Duc Khai Joint Stock Company and Vietnam Real Estate and Infrastructure Development Corporation (VIPD Group). VIPD Group is one of the subsidiaries of Van Thinh Phat Group.

Stick to many mistakes

The inspection conclusion of the Government Inspector on the conversion of a number of public houses with prime locations to other purposes in Ho Chi Minh City in 2021 indicates that the VTP high-rise project violates the Land Law. According to the conclusion, the location of real estate at 187A, 187H, 193, 203 Tran Hung Dao, invested by Van Thinh Phat Group, is a public property and the settlement must be shown according to the plan of arrangement and settlement. approved state-owned real estate management.

VTP Building is invested by Van Thinh Phat Group Joint Stock Company with a total land area of ​​1,954m2, at address 187A, 187H, 193, 203 Tran Hung Dao street. This land is originally the land of the State, formerly Van Xuan Hotel, was licensed by the Chief Architect of Ho Chi Minh City to build for the Union of Commercial Production Services, under the Saigon Trade Corporation. Therefore, the Government Inspector’s conclusion suggested that the Ministry of Finance examine and take measures to handle according to law.

Inspectors once pointed out many violations of Van Thinh Phat Group.

Also at this inspection conclusion, a number of other projects of Van Thinh Phat Group were mentioned such as the project of the Nguyen Hue quadrangle – Ngo Duc Ke – Ho Tung Mau – Huynh Thuc Khang, Ben Nghe ward, district 1.

This project was initially managed by the State with more than 2,815m2, privately owned more than 8,342m2. According to the Department of Planning and Investment, the investor has so far agreed to compensate households with an area of ​​7,931m2. There are 2,019m2 of investment property that has a certificate of land use right in the name of Van Thinh Phat Investment Joint Stock Company, 5,912m2 of land, the investor has signed a written agreement with the households.

On October 7, 2016, after the consortium of Van Thinh Phat Company and Larkball Holdings Limited Company pledged to support the Ho Chi Minh City budget with 20 million USD, the People’s Committee of Ho Chi Minh City approved in writing to continue implementing the policy of appointing a house. investment and assigned the Department of Planning and Investment to organize the implementation of procedures in accordance with regulations. The People’s Committee of Ho Chi Minh City and departments and branches have taken steps to appoint investors to implement this project.

However, the People’s Committee of Ho Chi Minh City has not selected and appointed an investor to implement. Therefore, the Government Inspector suggested that the People’s Committee of Ho Chi Minh City, based on the approved planning, approve the appropriate investment project and carry out the investor selection procedures in accordance with the law. For an area of ​​2,815m2 of state-owned land, the People’s Committee of Ho Chi Minh City must comply with regulations on management and use of public property and other relevant laws.

According to Duy Quang