Buy a company and “soak” the project
Truong Thinh Construction - Garment Embroidery Company, which belongs to the Ho Chi Minh City Labor Federation, was assigned by the Prime Minister over 3 hectares of land to build infrastructure for Truong Thinh Residential Area in An Khanh Ward, with a housing construction area of nearly 16,000m2 and a public works area of over 15,000m2 to be sold to civil servants and employees according to the Government's regulations on buying, selling and trading houses.
Project investment capital is capital advanced by customers, joint venture capital, enterprise's own capital and bank loans (no State budget capital). However, on October 14, 2016, the Presidium of the Vietnam General Confederation of Labor issued a Decision (No. 1678/QD-TLĐ) approving the auction results of Truong Thinh Construction Investment Company Limited.
While many people who gave land to the project have not received resettlement land to stabilize their lives, Truong Thinh Company has taken the recovered land and sold it to other customers, building houses for a long time. Photo: Van Huong
On October 27, 2016, the Steering Committee for Enterprise Innovation of Truong Thinh Construction Investment Company Limited, Ho Chi Minh City Labor Federation representing the agency decided to sell the enterprise, signed the Sales Contract (No. 05/2016/HDLD) to Mr. Pham Hoang Kiet for more than 20 billion VND (exactly 20.250 billion VND).
On November 21, 2016, Truong Thinh Construction Investment Company Limited notified the Department of Planning and Investment of the completion of the sale of the enterprise, and at the same time, converted the enterprise form into Truong Thinh Construction Investment Company Limited, with a charter capital of 550 billion VND (at this time, the State no longer owns).
Regarding the reason for the delay of the Truong Thinh Residential Area Project in An Khanh Ward, Thu Duc City, invested by Truong Thinh Investment - Construction Company Limited, which has lasted for more than 20 years, there are many reasons, such as: compensation and clearance work, some households have not received compensation, the reason is that these households have not agreed on the compensation plan.
Some households have internal disputes and are waiting for the court to decide on compensation. In addition, there is encroachment and illegal construction by households that have received compensation and allocated land for the project, leading to prolonged disputes.
On the other hand, due to the dispute between the project investors including Truong Thinh Company and Tan Viet An Housing Investment and Trading Joint Stock Company (according to Business Cooperation Contract No. 126/HDHTKD dated October 15, 2002, between Truong Thinh Company and Tan Viet An Company). These reasons, Nguoi Dua Tin has reflected and mentioned in previous articles.
Households have built houses and moved in at Binh Trung Dong Residential Area but have not yet received red books because they have not paid land use fees. Photo: Van Huong
However, one of the important reasons is the capacity of Truong Thinh Company, the investor implementing the project. To better understand the capacity of the project and have objective and multi-dimensional information, the reporter contacted Mr. Nguyen Huu Nghia, Director - legal representative of Truong Thinh Company many times to work. Initially, Mr. Nghia even picked up the phone and promised to arrange to work with the reporter, however, recently, he has tried to avoid and not pick up the phone.
No longer able to carry out the project?
Through research and investigation by PV, it is shown that Truong Thinh Company currently has many projects scattered throughout Ho Chi Minh City, especially in Thu Duc City and is in a state of stagnation and "soaking", similar to the Truong Thinh Residential Area Project in An Khanh Ward, Thu Duc City.
A typical example is the Ward Rental Housing Area at 195 National Highway 1A, Binh Chieu Ward, Thu Duc City. This land area has an area of about 3,000m2, previously consisting of a number of cheap rental rooms for workers. Notably, Truong Thinh Company received preferential loans from the Ho Chi Minh City Labor Federation to implement this project.
No construction activities are seen at the residential area project in Ward 4, Phuoc Long A. Photo: Van Huong
On July 5, PV was present at 195 National Highway 1A and recorded that this building was being repaired and an elevator installed. According to the source provided to PV, this building was converted into apartments for rent... on State-managed land (public land). According to unverified information, Truong Thinh Company still owes the fund for housing support for officials and employees a loan from the Ho Chi Minh City Labor Federation (when the company was still affiliated). Regarding this information and the management of public land under State management in this project, PV will mention in the following articles.
Or Binh Trung Dong Residential Area (or Truong Thinh Binh Trung Dong Residential Area) on Nguyen Duy Trinh Street, Binh Trung Dong Ward, Thu Duc City has completed the infrastructure, some households have built houses, the remaining households have not yet built (like Truong Thinh Residential Area in An Khanh Ward). However, the households who have built houses have not yet had red books because they have not paid the land use fee.
Ms. Nghiem, household C63, Binh Trung Dong residential area said: “We have been living in the house since 2009 and have not been able to get the red book yet. The reason is that Truong Thinh Company refuses to do it, making promises year after year. However, we suspect that they do not have enough capacity, especially finance, to continue implementing this project.”
Actual records of the reporter show that, at the project, there is still a lot of vacant land, overgrown with weeds. Some vacant land is being used by the investor as a soccer field for profit. Some households have built houses but not significantly in this residential area.
According to a source provided to PV, the house at 195 National Highway 1A is being renovated into apartments for rent…. on State-managed land (public land). Photo: Van Huong
In addition, the Sanchu House Project – Thao Dien (alley 120 Nguyen Van Huong, Thao Dien ward, Thu Duc city) has been completed and the villas have been handed over. However, this project has not been granted a red book due to planning errors and land use fees have not been paid.
Similarly, the Residential Area Project in Quarter 4, in Phuoc Long A Ward, Thu Duc City, is jointly invested by Truong Thinh Company and Bach Giang Construction and Housing Business Company Limited (of which Truong Thinh Company is a secondary investor). However, this project has not yet completed compensation and clearance, and has not yet built infrastructure, but has received capital contributions for all the house plots.
On July 5, PV was present at this project and did not see any construction activities taking place. In the area, there was only vacant land and some trees. Regarding the project, the Vietnam Joint Stock Commercial Bank for Investment and Development ( BIDV ) auctioned the land to recover a debt of nearly 234 billion VND (as of March 10, 2021).
In addition, there is the Full House Apartment Project (Binh Tri Dong B, Binh Tan District), invested by Truong Thinh Company, which has been completed, collected all the money, and handed over to customers. However, the project does not have a pink book yet, because it has not fulfilled its financial obligations to the State, the investor illegally sold the project's management building....
Thanh Tung - Tien Dung
See more: Article 1: Ho Chi Minh City: Investors procrastinate, "hang" projects for more than 20 years
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