Inadequacies in project capital mobilization in Ho Chi Minh City

Project launched with great fanfare then "shelved"

According to the investigation of Nguoi Dua Tin reporters , in previous years, the apartment and condominium market in Ho Chi Minh City was quite active. The management of real estate projects was always of interest to the authorities, and inspections were increased, but there were still "underground" projects advertised for sale and capital mobilization when they did not meet the conditions for opening for sale according to the provisions of law.

D-One project is located on the frontage of Phan Van Tri street, Go Vap district.

Notably, the D-One and D-Aqua project duo are invested by DHA LLC. The D-One project is located at 12 Phan Van Tri Street, Go Vap District, invested by DHA LLC. Since the end of 2018, this project has been advertised for sale and accepted deposits for reservations.

The D-One project is advertised to be planned on a total area of 2 hectares, including 322 studio apartments and 226 modern business shophouses. It brings a vibrant shopping, entertainment and recreation paradise and is advertised as the perfect piece for a sleepless Ho Chi Minh City. However, the actual records of the reporter show that D-One is just an empty lot and it is unknown when this project will be restarted.

Another project of DHA LLC is the D-Aqua project located on the frontage of Ben Binh Dong, Ward 14, District 8, which is public land and was transferred in a roundabout way from the Ho Chi Minh City Investment and General Import-Export Joint Stock Company (IMEXCO) to DHA Investment One Member Limited Liability Company (DHA Corporation).

In 2020, PV reported on the situation of DHA LLC illegally raising capital at the D-Aqua project, even though it was just an empty lot at that time.

Up to now, after 3 years, according to the reporter's records, the project has restarted, inside the construction site nearly ten workers are working, but it is not known when the buyers will receive their houses.

Perspective of Salto Residence project.

In Thu Duc City, recently the Salto Residence project, invested by Saigon Construction Corporation (SCC), has been offered for sale when the land was just an empty lot.

Located right on Nguyen Thi Dinh street in Pho Dong Village urban area, the project is built on an area of 8.77 m2, with a scale of 21 floors, 483 apartments and 8 shophouses. According to the broker, this is a project with a very good price, starting from only 59 million VND/m2. At the end of May 2022, SCC also organized a project introduction.

The investor received the money and then… promised.

In Ho Chi Minh City, there is no shortage of real estate projects that were launched with great fanfare a few years ago, collecting money from hundreds of customers but then being "shelved". People are waiting impatiently for the day they will have a house.

City Gate 3 project is still "inactive".

For example, the City Gate 3 project is being introduced by many websites as the most luxurious apartment project in the West of Ho Chi Minh City, located in a prime location in Ward 16, District 8 and is also the largest-scale project in Ward 16 ever. The project promises to create an apartment fever at the end of 2018, invested by Nam Bay Bay Investment Joint Stock Company (Company 577).

According to the advertisement, the project has a scale of more than 7.7 hectares, including 2,201 apartments with 3 blocks of 33 floors; 34 shophouse apartments; 134 townhouses, with a total investment of 2,615 billion VND, 100% invested by Company 577.

The project is introduced with full facilities such as: kindergarten, primary school, medical station, tennis court, swimming pool, gym...

That is the advertisement, but up to now the project is still "inactive", with no sign of construction implementation. This makes many home buyers in the project miserable, having to borrow money and pay interest to the bank to have money to give to the investor.

The Lancaster Lincoln project started construction of the basement in late 2016, but was "whistled" in 2018 because it did not have a construction permit.

Or Lancaster Lincoln Project built on a land area of over 8,400m2, including 2 40-storey apartment towers, 1 8-storey office building and 2 basements, providing 586 apartments and 274 officetels.

The project, invested by Trung Thuy Lancaster Company Limited, a member of Trung Thuy Group, started construction of the basement in late 2016, but was "whistled" in 2018 because it did not have a construction permit.

The news that the project was stuck in legal trouble and had to stop construction made many customers who had made deposits and signed house purchase contracts "sit on hot coals" because they had spent large sums of money, from hundreds of millions to billions of dong. People also sent petitions for help to many agencies and units from local to central levels, but so far they have not been processed.

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Source: https://www.nguoiduatin.vn/bat-cap-trong-huy-dong-von-du-an-o-tp-hcm-a635620.html