Former property firm boss investigated for involvement in HCMC 'golden land' acquisition

By Dang Kiet, Minh Hue
Sat, October 28, 2023 | 2:34 pm GMT+7

Ho Chi Minh City police on Friday launched legal proceedings against Dinh Truong Chinh, former director of Viet Han Trading, Advertising, Construction and Real Estate Co., Ltd (Viet Han Company) for violations relating to the acquisition of “golden land” in the city.

Chinh, charged with "violating regulations on the management and use of state property causing losses and wastefulness" under Article 219, Clause 3 of the Penal Code, has been placed under house arrest pending the investigation.

Huynh The Nang, former general director of the Southern Food Corporation (Vinafood II), is also being investigated for the same charge.

According to HCMC police, Nang and Chinh had violated legal regulations on the management and use of the plot of land at No. 33 Nguyen Du street and No. 34 - 36 - 42 Chu Manh Trinh street, Ben Nghe ward, District 1, causing serious damage to the state.

The dormitory at No. 33 Nguyen Du street and No. 34 - 36 - 42 Chu Manh Trinh street, Ben Nghe ward, District 1, Ho Chi Minh City. Photo by The Investor/Dang Kiet.

The dormitory at No. 33 Nguyen Du street and No. 34 - 36 - 42 Chu Manh Trinh street, Ben Nghe ward, District 1, Ho Chi Minh City. Photo by The Investor/Dang Kiet.

The municipal police’s investigative agency is focusing on expanding the investigation and applying legal measures to strictly punish the individuals involved and recover lost state assets.

Viet Han Company was established in 2006 in HCMC with initial charter capital of VND320 billion ($13 million under the current exchange rate), which was then increased 5 times to VND1.6 trillion ($65 million). Of which 49% was owned by Chinh, 39% by Ha Tay Investment and Development JSC, and the remaining by a number of individuals.

In 2022, HCMC authorities decided to recover 6,274.5 square meters of land at No. 33 Nguyen Du street and No. 34 - 36 - 42 Chu Manh Trinh street. This land was transferred by Viet Han Saigon Trading, Services and Construction Company Limited (Viet Han Saigon Company) from Vinafood II.

The area was being used as a dormitory for Vinafood II staff, but the goahead was given for it to be turned into a high-end hotel, office building and commercial center for rent. Vinafood II and Viet Han Company established a joint venture named Viet Han Saigon Company to implement the project in 2009. Vinafood II contributed 20% of the joint venture’s capital with part of the land use rights, and Viet Han Company 80% in cash.

In 2009, the investor offered a compensation price of VND105 million ($4,270) per square meter of land but failed to gain residents’ consensus.

In mid-2018, compensation and site clearance for the project restarted, but the investor kept the compensation price at VND105 million per square meter so an agreement could not be reached.

In November 2018, Viet Han Saigon Company sent people to barricade the dormitory area in an attempt to illegally take over the land. The residents repeatedly protested and even submitted petitions to local authorities, but the situation continued, making many people angry.

On December 2, 2020, the Government Inspectorate issued a conclusion on Vinafood II's violations in the transfer and arrangement of real estate at the above location.

The document clearly stated that Vinafood II did not implement plans to rearrange four buildings and land, failed to select a capable partner to implement the project, and did not conduct a strict divestment and make compensation and relocation support plans for 34 households.

Dinh Truong Chinh is also the legal representative of Housing Development and Trading Joint Stock Company (HDTC), which has just been forced by the HCMC Customs Department to stop customs procedures due to overdue tax debt of nearly VND114 billion ($4.64 million).

HDTC was established in 1998 as a 100% state-owned enterprise whose main business was trading real estate and land use rights. In 2016, the company, a member of Saigon Real Estate Corporation, was equitized with state capital falling to only 30%.

In addition to the golden land mentioned above, the names of HDTC and Dinh Truong Chinh are associated with a series of acquisitions of public and golden land across the country such as Laimain City in the An Phu An Khanh Urban Area in Thu Duc city and the An Suong and Long Toan-Ba Ria residential areas.

Comments (0)
  • Read More
Vietnam’s benchmark VN-Index to reach 1,400-1,420 points in 2025: broker

Vietnam’s benchmark VN-Index to reach 1,400-1,420 points in 2025: broker

The VN-Index, representing the Ho Chi Minh Stock Exchange (HoSE), may hit 1,400-1,420 points in 2025, driven by an 18% market-wide profit growth and a price-to-earnings (P/E) ratio of 12.5-13x, according to broker MBBank Securities (MBS).

Finance - Sun, December 22, 2024 | 7:52 pm GMT+7

HCMC's first metro line officially operational after nearly 2 decades

HCMC's first metro line officially operational after nearly 2 decades

The first urban railway line in Ho Chi Minh City, named Ben Thanh-Suoi Tien, officially started commercial operations on Sunday after nearly two decades of waiting.

Infrastructure - Sun, December 22, 2024 | 2:17 pm GMT+7

Vietnam's 2025 GDP to grow 6.5% on robust infrastructure investment, consumer spending recovery: VinaCapital

Vietnam's 2025 GDP to grow 6.5% on robust infrastructure investment, consumer spending recovery: VinaCapital

Domestic factors, including a ramp-up in Government infrastructure spending, a revival of the real estate market, and a recovery of consumer spending, will help sustain Vietnam's GDP growth at a circa 6.5% pace next year, in-line with the National Assembly’s official target and with 2024 GDP growth, write Michael Kokalari, chief economist at VinaCapital.

Consulting - Sun, December 22, 2024 | 2:00 pm GMT+7

Vietnam shipping, seaport stock rally driven by rosy outlook in 2025

Vietnam shipping, seaport stock rally driven by rosy outlook in 2025

Many shipping and port stocks have risen sharply since November on an optimistic outlook for the industry driven by increasing throughput and a shift in container shipping alliances in 2025.

Companies - Sun, December 22, 2024 | 10:00 am GMT+7

Singapore’s Platinum Victory seeks to raise stake in Vietnam’s REE to nearly 45%

Singapore’s Platinum Victory seeks to raise stake in Vietnam’s REE to nearly 45%

Singaporean fund Platinum Victory Pte. Ltd. has registered to buy another 16.8 million shares in Ho Chi Minh City-based utility firm Refrigeration Electrical Engineering Corporation (REE), aiming to increase its ownership to nearly 45%.

Finance - Sun, December 22, 2024 | 9:29 am GMT+7

1.8 km road connecting Lach Huyen Port terminals to be built in northern Vietnam

1.8 km road connecting Lach Huyen Port terminals to be built in northern Vietnam

The Hai Phong Economic Zone Management Board has taken a significant step forward in enhancing infrastructure around Lach Huyen Port by establishing a council to appraise the environmental impact assessment for the road connecting terminals No. 3 to No. 6.

Economy - Sun, December 22, 2024 | 8:00 am GMT+7

Hanoi TikToker internationally wanted for involving in multi-billion-dollar scam

Hanoi TikToker internationally wanted for involving in multi-billion-dollar scam

Hanoi police have issued an international arrest warrant for Le Khac Ngo, known as "Mr. Hunter," a key accomplice in a recently-dismantled massive foreign exchange and securities fraud ring.

Society - Sat, December 21, 2024 | 10:57 pm GMT+7

Unlocking Phu Quoc’s potential to become the 'Hawaii of the East'

Unlocking Phu Quoc’s potential to become the 'Hawaii of the East'

Leading global tourism companies have remarked that Phu Quoc has "yet to receive the recognition it deserves," despite its impressive and unexpected growth rate.

Travel - Sat, December 21, 2024 | 7:20 pm GMT+7

Thai central bank maintains policy interest rate at 2.25%

Thai central bank maintains policy interest rate at 2.25%

The Thai Chamber of Commerce (TCC) has said it backs the decision by the Bank of Thailand, the country's central bank, to maintain the policy interest rate at 2.25%, considering the move as suitable for a reviving economy.

Southeast Asia - Sat, December 21, 2024 | 5:43 pm GMT+7

Vietnam's military-run tech giant Viettel strikes big deals at international defence expo

Vietnam's military-run tech giant Viettel strikes big deals at international defence expo

Subsidiaries of Military Industry and Telecommunications Group (Viettel) signed a string of significant contracts with major global partners during the first two days of the Vietnam International Defence Expo 2024 in Hanoi.

Companies - Sat, December 21, 2024 | 5:36 pm GMT+7

Taiwan’s Wistron acquires 37ha land lot in northern Vietnam for expansion

Taiwan’s Wistron acquires 37ha land lot in northern Vietnam for expansion

Taiwan-headquartered Wistron, a top electronics provider and an Apple supplier, will further its investment in Vietnam’s northern province of Ha Nam by acquiring another 37.1-hectare land lot.

Companies - Sat, December 21, 2024 | 2:08 pm GMT+7

VAFIE seeks to promote sci-tech development, intellectual property policies

VAFIE seeks to promote sci-tech development, intellectual property policies

The Vietnam’s Association of Foreign Invested Enterprises (VAFIE) aims to enhance policies for the development of science, technology, and intellectual property, creating a more conducive investment environment.

Companies - Sat, December 21, 2024 | 1:59 pm GMT+7

Vietnamese dong likely to depreciate 3% in 2025: VinaCapital

Vietnamese dong likely to depreciate 3% in 2025: VinaCapital

The Vietnamese dong is likely to depreciate 3% in 2025 on anticipation that the US Dollar/DXY Index will finish 2025 nearly unchanged, says Michael Kokalari, chief economist at Vietnam's leading fund manager VinaCapital.

Economy - Sat, December 21, 2024 | 11:23 am GMT+7

First luxury railway journey across Vietnam features Indochine architecture

First luxury railway journey across Vietnam features Indochine architecture

PYS Travel has launched the first luxury railway journey across Vietnam named Sjourney, marking a new milestone in the railway tourism sector.

Travel - Sat, December 21, 2024 | 10:09 am GMT+7

Vietnam among 40 most beautiful countries: US publication

Vietnam among 40 most beautiful countries: US publication

Vietnam has secured the 36th position in the ranking of the 40 most beautiful countries in 2024 in a testament to its undeniable charm and appeal, according to US News & World Report.

Travel - Sat, December 21, 2024 | 10:04 am GMT+7

Foxconn to invest $16 mln more in Vietnam’s Quang Ninh province

Foxconn to invest $16 mln more in Vietnam’s Quang Ninh province

Competition Team Technology (Vietnam) Company Limited, a subsidiary of Foxconn, will invest an extra $16 million in its “S- Vietnam” project in the northern coastal province of Quang Ninh.

Industries - Sat, December 21, 2024 | 9:53 am GMT+7