Many construction industry giants involved in violations

According to the conclusions of the Government Inspectorate 's inspection on financial handling and enterprise valuation for equitization, several corporations still have outstanding receivables and payables that have not been fully reconciled and confirmed, amounting to over 5,690 billion VND.

Notably, several companies such as Song Da, Licogi, Fico, Lilama, Vietnam Water and Environment Investment Corporation (Viwaseen), and VNCC had their enterprise values determined incompletely, inaccurately, and improperly, omitting interest on deposits, brand value, depreciation of tools and equipment, and improperly writing off debts… totaling 23.3 billion VND.

Enterprises such as Vietnam Cement Corporation (Vicem), Licogi Corporation (Licogi), and Vietnam Water and Environment Investment Corporation (Viwaseen), when determining their enterprise value for equitization, have calculated the value of goodwill and opportunity costs incompletely and inaccurately, resulting in a shortfall of approximately 1,879 billion VND.

The Government Inspectorate has uncovered violations by the Vietnam Cement Corporation in the equitization process.

Specifically, Licogi undercalculated approximately 348 billion VND in the Thinh Liet new urban area project; Viwaseen undercalculated 23.8 billion VND when transferring the An Thinh 6 urban area project; and Vicem, when determining the enterprise value, failed to include the value of goodwill related to the right to exploit limestone and clay mines, amounting to approximately 1,507 billion VND.

The financial handling process for the equitization of Vicem, Vicem Hai Phong , and Vicem has not yet processed and collected the difference of VND 3,011 billion between equity and charter capital, which is not in accordance with regulations.

According to the inspection report, 10 out of 16 corporations under the Ministry of Construction are managing and using approximately 1,348,172 square meters of land. However, during the equitization process, some corporations have not completed the review and arrangement of land and property assets, nor have they finalized land use plans after equitization for submission to competent authorities for approval. In some cases, the land use plans were not in accordance with the local land use planning.

Many corporations have failed to provide complete information, records, and land documents as requested by local authorities.

Some localities have received requests from the Ministry of Construction and corporations but have not yet provided written feedback on land use plans, nor have they approved land prices to determine the value of land assets for enterprise valuation purposes.

In addition, some corporations, despite divesting state capital, still have investments outside their core business, posing a high risk of losses, amounting to approximately 147 billion VND.

To address the violations discovered during the inspection of the equitization of corporations under the Ministry of Construction, the Government Inspectorate recommends that the Prime Minister direct the corporations to promptly rectify and overcome the shortcomings and violations for which they are responsible.

The Government Inspectorate also recommended that the Prime Minister direct the corporations to focus on reviewing and handling, in accordance with regulations, the financial violations mentioned in the inspection report, totaling approximately 5,690 billion VND.

Regarding the 4.529 billion VND at Vicem, the Government Inspectorate requested the Ministry of Construction to report to the Prime Minister to direct the collection and remittance of approximately 2.910 billion VND to the state budget.

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