The construction of JW Marriott Hotel Hanoi was found to have had violations, according to a Government Inspectorate release Thursday on state management of tourism.
The first investment certificate was given to the 5-star hotel project though the Hanoi People’s Council, the municipal legislative body, had yet to approve it.
Under a decision by the council on reclaiming land for Vietnamese group Bitexco to build the hotel, the hotel and garden area decreased by 5,497 square meters while the water surface increased by 5,224 sqm.
"The decision did not match the planning approved by the Ministry of Construction," the inspectorate notes.
The classification of the project as being entitled to investment preferences per the government’s Decree 108/2006 was not in line with the regulations.
"Therefore, the investor must pay additional land rent fees of VND26.2 billion ($1.08 million)," the conclusion reads.
The inspectorate proposed the Prime Minister ask Hanoi authorities to report to the Ministry of Construction for adjustment to the project's planning to make it fit the actual construction.
Bitexco was also requested to pay additional land rent fees and payment delay charges, if any, to ensure it does not cause losses to the state budget.
The Hanoi People’s Committee, the municipal law enforcement body, was asked to identify and discipline individuals and entities related to the wrongdoings.
The first violation involved an inaccurate list of hotel staff in 2013 and 2014, which led to investment incentives for Bitexco against the regulations, causing losses to the state coffers. The second violation is the size of the project area.
Bitexco, founded in 1985 as a textile company in the northern province of Thai Binh, has grown into a leading multi-industry corporation in Vietnam.
The company has expanded its investment into mineral water production, real estate, energy, infrastructure, financial investment, hospitality, mining, oil and gas, among others.