'Naming' the trillion-dollar project of Phuc Son Group in Quang Ngai

Recently, Chairman of the People's Committee of Quang Ngai province Dang Van Minh directed the Departments of Planning and Investment; Construction; Natural Resources and Environment; Finance; Home Affairs and the Provincial Tax Department to provide information and documents at the request of the Department of Investigation Police on crimes of corruption, economy, and smuggling of the Ministry of Public Security (Department of Economic Police).

Phuc Son Group won the construction contract for the Tra Khuc River South Bank Road Project.

Previously, on February 25, 2024, the Economic Police Department sent an official dispatch to the People's Committee of Quang Ngai province stating that it was investigating and verifying a case with signs of law violations in the fields of tax, accounting, investment, and implementation of projects and works occurring at Phuc Son Group Joint Stock Company (Phuc Son Group) and related units.

To serve the investigation, the Economic Police Department requested the People's Committee of Quang Ngai province to provide and direct its affiliated units including: Department of Planning and Investment; Construction; Natural Resources and Environment; Tax Department... to provide all information, records, and documents related to the process of approving investment policies; selecting investors; implementing investment, construction, declaration, tax obligations, inspection, examination... of projects and works invested and constructed by Phuc Son Group and its member companies in Quang Ngai province.

According to the reporter's investigation, in 2012, Phuc Son Group won the construction contract for the Tra Khuc River South bank road project with an investment capital of nearly 1,000 billion VND. The Quang Ngai Department of Transport was assigned by the province to be the investor.

The project has a total route length of more than 8.7km, a 36m wide roadbed, a 22m wide asphalt concrete road surface. This is a completely new investment traffic project.

The project starts at Highway 1 at Km1,057 and ends at the intersection leading to Co Luy Bridge. The route is designed according to the standards of a grade II urban main street running along the south bank of Tra Khuc River through the communes and wards of Quang Ngai City.

Most recently, in 2022, Phuc Son Group was approved by the People's Committee of Quang Ngai province to invest in the Bau Giang urban area project.

The project is implemented within 6 years from the date of selecting the investor. The project's operating period is 49 years, from the date of the decision on land allocation and land lease. This is an urban area project that selects investors through bidding, invested with the goal of building a new, civilized, modern urban area with synchronous technical and social infrastructure, as well as closely connected with the surrounding landscape, in accordance with the planning orientation of Quang Ngai City and Tu Nghia District.

The project area is 495,932 m2, including 294 commercial houses located on the main road with an area of 46,089 m2, 274 social houses with an area of 19,292 m2, 795 land lots... The total investment capital of the project is up to 3,318 billion VND.

Although it has just been licensed, Nguyen Van Hau - Chairman of the Board of Directors of Phuc Son Group Joint Stock Company - has been preparing for the above project for a long time. In 2018, this 8X tycoon established Bau Giang Urban Area LLC in Quang Ngai. The company's initial charter capital was only 20 billion VND.

By 2019, Nguyen Van Hau became Chairman and General Director of the company, and increased the equity to 250 billion VND. In both 2019 and 2020, Bau Giang Company did not earn any money, reporting losses of 494 million VND and 1 billion VND respectively.

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