Hoa Binh Construction wins suit against Cocobay condotel developer

Vietnamese real estate developer Thanh Do has lost a lawsuit to Hoa Binh Construction, which had built a condotel project in Danang city on Vietnam’s central coast for the former.

Hoa Binh, headquartered in Ho Chi Minh City and listed on the city bourse (HoSE) as HBC, will receive nearly VND367 billion (over $15.6 million) from Hanoi-based Thanh Do per a ruling by the arbitration panel handling the case.

The sum represents compensation for 12 construction contracts previously given to Hoa Binh in the Cocobay Danang condotel and resort project. It includes original debts plus interest, attorney fees, and arbitration fees. Hoa Binh had earlier filed the lawsuit because Thanh Do did not make enough payments for the 12 contracts.

The arbitration ruling, which took effect on January 6, says if Thanh Do does not pay the compensation within 30 days from the effective date, it will pay for interest rates, which are 11.5-14.6% per annum as stipulated in the contracts.

In another development related to Thanh Do Company, Mai Huy Tan, chairman of Vietnam-Germany Bridge Ltd. Co., said on January 22 that Nguyen Duc Thanh, chairman of Thanh Do, had signed and stamped on a debt confirmation note for the latter, who had bought condotel apartments at the project.

Tan said Thanh Do’s debt to his firm is VND700 billion, equal to around $29.87 million based on current forex rates. He added he has not been paid back at all despite the signed note.

According to him, Thanh Do has debts with many other investors who had bought condotel apartments at the project. The developer has not presented to the buyers their ownership certificates but the company blames this delay on Danang city’s administration, saying it has finished the legal process, also according to Tan.

The man added he has filed a lawsuit against Thanh Do, saying he did not see any goodwill from the developer.