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

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 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.