Vietnam real estate tycoon hit with travel abroad ban over tax dues

Nguyen Ngoc Thao, chairman and legal representative of real estate developer Trungnam Land, has been banned from leaving the country from June 7 onwards until the firm pays its tax arrears.

In a recent announcement, the Danang Tax Department said Trungnam Land owed arrears of VND583 billion ($22.9 million).

Trungnam Land, part of the Trungnam Group conglomerate, was established in the central city of Danang in December 2021. It has since achieved fame as investor of the city’s Golden Hills City, a $1.67 billion real estate project covering 351 hectares.

In February 2023, the Danang Tax Department slapped a collection enforcement notice for VND445 billion ($17.5 million) against Trungnam Land after the firm missed a 90-day payment deadline.

Trungnam Land said the notice was related to the Golden Hills City project. It said that its financial obligations were based on the project’s progress and business plan.

As of end-2022, the firm had reportedly paid VND93 billion ($3.7 million) in resettlement fees and VND419 billion in land taxes, but had yet to receive land use right certificates for the project over some legal issues.

This negatively impacted the firm’s ability to fulfil its tax obligations and business operations, the firm explained.

In May, customs authorities in Khanh Hoa province proposed a travel ban to prevent Nguyen Tam Thinh, chairman of Trungnam Group, from leaving the country.

In a proposal sent to the Vietnam Immigration Department, under the Ministry of Public Security, Khanh Hoa customs authorities said Thinh, as legal representative of Trungnam Group, was responsible for the firm’s unfulfilled tax obligations.

The travel ban was lifted in June after firm paid its tax dues.