Central Vietnam city auctions 'golden' land related to convicted real estate tycoon

A prime land plot located at the center of Danang city, which was previously linked to the case of real estate tycoon Phan Van Anh Vu (also known as Vu 'Nhom'), is being auctioned with a starting price of VND59.2 million ($2,319) per square meter.

The area, with two street frontages on Bach Dang and Tran Phu, covers 1,795 square meters, according to the municipal People’s Committee’s decision on land-use right auction plans for the land plot,

The land, located at 16 Bach Dang street, Hai Chau district, was set for commercial and service purposes, with high-end business models such as grade-A office spaces, luxury hotels, tourist apartments, and other attractive tourism services.

To participate in the auction, investors must place a deposit of 20% of the initial price. The winning bidder will be allowed to implement the project according to the approved plan, with a total expected investment of over VND300 billion ($11.75 million).

The project timeline is 24 months, starting from the date the city issues the land lease decision.

The people's committee encourages the winning investor to consider increasing the construction setbacks beyond the regulations to create more open space for the streets, expand green areas for the project, and ensure parking space, "contributing to building a more modern and civilized Danang city".

The 16 Bach Dang land plot was handed over by the city people's committee to Bac Nam 79 Construction JSC of Phan Van Anh Vu (aka Vu 'Nhom') in April 2016. At that time, the land lease and the sale of house structures were worth VND45 billion ($1.76 million), paid in one lump sum for the entire lease period.

According to the Government Inspectorate's conclusion, Danang’s lease of the 16 Bach Dang property was not in accordance with regulations, as leasing land must also go through an auction for land lease rights.

In 2018, the investigative agency of the Ministry of Public Security initiated an investigation into several cases, including "deliberately revealing state secrets," "tax evasion," "abuse of positions and power while performing duties," "violating regulations on the management and use of state property, causing losses and waste," and "violating regulations on land management," all related to Phan Van Anh Vu in Danang.

To support the investigation and ensure the recovery of state assets and execution of the judgements, the investigative agency froze related assets in Danang, including the aforementioned land.

It also requested the people's committee to temporarily halt all transactions of stakes, shares, real estate, and rights and assets of individuals and organizations related to Vu.

In May 2023, the agency sent a document to the people's committee requesting the cancellation of the suspension of asset transactions to ensure the normal operation of companies linked to Vu and his wife. A year later, the people's committee informed related agencies and units regarding the cancellation.