The lawsuit between the My Dinh National Sports Complex (referred to as the complex, the defendant in the case) and Hai Yen Company (the plaintiff) has concluded. The company sued the complex alleging that it violated a contract signed in 2011. This was the time when Mr. Can Van Nghia was the director of the complex (he retired in 2018).
According to a 10-year contract (from December 2011 to December 2021), Hai Yen Company leased the premises for business purposes. In 2019, the complex unilaterally terminated the contract, reclaiming the land to serve the construction of the Formula 1 race track (the race in Vietnam was later canceled).
In the lawsuit, the company alleges that the resort complex cut off electricity and water to the restaurant owned by the company without negotiation, direct communication, or written notice, resulting in significant losses.
The My Dinh National Sports Complex is in tax arrears.
This company sued the complex for 20 billion VND in compensation, claiming that after the power and water were cut off, the restaurant had no customers, resulting in significant losses of up to 30 billion VND. In the second trial, Hai Yen Company requested an additional 23.5 billion VND in compensation from the complex. This represents the generated profit that the company believes it would have earned if the complex had not cut off the power.
Conversely, the complex's management asserted that Hai Yen Company violated the contract by leasing the space to a third party at a price significantly different from the price stipulated in the lease agreement.
After several court sessions, the People's Court of Nam Tu Liem District issued a ruling: partially accepting Hai Yen Company's claim for damages under the contract, ordering the defendant, My Dinh National Sports Complex, to compensate the plaintiff, Hai Yen Company, with the amount of 11.9 billion VND.
This includes 100 million VND for damaged goods due to power outages and gate closures at the industrial complex from October 25, 2017 to January 15, 2018; 1 billion VND for two months' business premises rent (from December 2, 2017 to February 15, 2018); and 10.8 billion VND for breach of contract.
The court also partially dismissed the plaintiff's claim, rejecting the defendant's counterclaim due to insufficient grounds, and reserved the defendant's right to file a separate lawsuit if they so desire. In addition, the defendant (the complex) was ordered to pay 119.9 million VND in first-instance commercial court fees.
The My Dinh National Sports Complex owes approximately 1,000 billion VND in taxes. However, according to the Minister of Culture, Sports and Tourism, Nguyen Van Hung, this is a debt that will be difficult to recover.
At the explanatory session on the implementation of policies and laws on the construction, management, and use of cultural and sports facilities from 2013 to 2023, organized by the National Assembly's Committee on Culture and Education , Minister of Culture, Sports and Tourism Nguyen Van Hung affirmed: "Businesses are leasing land there, but the land does not yet have land ownership certificates. Some have structures built on them, but others are vacant and unused. All of them are subject to tax, and if left like that, there will be 1,000 billion VND in outstanding tax debt." Therefore, enforcing tax collection against the My Dinh National Sports Complex is "very difficult."
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