Scandal-hit Tan Hoang Minh Group eyes $592 mln ecotourism project in central Vietnam

Real estate developer Tan Hoang Minh Group has proposed the central province of Quang Binh allow it to study the building of a VND15 trillion ($592 million) ecotourism area in Le Thu district.

Under the proposal, presented by the group during a recent meeting with local authorities, the Bau Sen ecotourism area project would span approximately 1,655 hectares in Ngu Thuy and Sen Thuy communes.

The plan features developing a high-end resort complex, including functional zones, commercial-service areas, villas, hotels, restaurants, parks, and a golf course.

In response, Chairman of the provincial People's Committee Tran Phong asked the company to fully acquire feedbacks from relevant agencies to ensure the project’s feasibility and effectiveness.

The provincial leader also noted the investor needs to carefully consider legal procedures, environmental protection measures, and conservation of wetland ecosystems.

In March 2024, the Hanoi People's Court sentenced Tan Hoang Minh Group's chairman and CEO Do Anh Dung to eight years in prison for “fraudulent appropriation of property.”

His son, Do Hoang Viet, deputy CEO, was sentenced to three years behind bars for the same charge. Thirteen others, including leaders and employees of the group and two auditing firms, received sentences ranging from 18 months in probation to 30 months.

According to the indictment, Dung was the mastermind of a corporate bond fraud that involved three subsidiaries of Tan Hoang Minh, a luxury real estate developer, which appropriated VND8.64 trillion ($356 million) from 6,630 victims, mostly amateur bond investors.

Dung directed his subordinates to use three subsidiaries – Viet Star Real Estate Investment Ltd, Winter Palace JSC and Soleil Hotel Services and Investment JSC – to make up false transactions and hired auditing and price appraisal firms to facilitate nine bond issuances worth a combined VND10.03 trillion ($413 million).

After several manoeuvres, Tan Hoang Minh became primary holder of those bonds and resold them to secondary buyers, raising nearly VND14 trillion ($576 million). The property developer used VND5.1 trillion of the proceeds for rollovers before the case was cracked in April 2022.

According to the company’s updated business registration in June 2024, its legal representative and CEO is Ta Quoc Viet, replacing Do Anh Dung.