“Government Inspector Sheds Light on Thành Công Group’s Largest Golf Project in Vietnam”

The Government Inspectorate has recently issued a notice on the conclusion of inspection of the implementation of laws on inspection, citizen reception, complaint settlement, denunciation handling, anti-corruption, land management, licensing of land and stone mine exploitation, planning, and construction planning in Ninh Binh province.

According to the conclusion, the inspectorate has found some limitations, deficiencies, and violations in the implementation of 18 projects (16 land projects and 2 mineral exploitation projects).

Notably, there were deficiencies and violations in the project The Five Villas & Resort Ninh Binh (formerly known as the Royal Golf Course project) by the TC Group.

Currently, the project is considered a resort complex called The Five Villas & Resort Ninh Binh. The Royal Golf Course project is known as the largest golf course complex in Vietnam.

Based on the violations identified through the inspection of the Royal Golf Course project in the notice recently issued, the Government Inspectorate recommends that the Prime Minister direct the People’s Committee of Ninh Binh province to review and handle the deficiencies in accordance with regulations. This includes correcting planning approvals that are not in the correct proportion, not adjusting the overall planning, planning indicators that are not appropriate to higher-level planning and construction standards, and not building according to the granted permits, etc.

Specifically, the Government Inspectorate requests to re-determine the land use history and land leasing fees in accordance with the legal provisions, ensuring accuracy and sufficiency, and not allowing any budget loss. In addition, it also requires to review and handle the slow determination of financial obligations, signing land lease contracts for some areas in the Royal Golf Course project. Furthermore, the Inspectorate requests to check and review the business operation of villas and condotels at the Royal Golf Course project.

The Government Inspectorate also recommends that the Prime Minister direct the State Bank of Vietnam to inspect and review the transfer, determine the transfer price of 66,842,700 shares (75% of the share capital) of PV-Inconess from Viettinbank Capital to TCG Land (related to the investment projects of Dong Thai Lake Ecotourism Area and the Royal Golf Course project), ensuring the determination of the share price and transfer in compliance with regulations.

The “transformation” process of PV-Inconess to TC Group

Since 2018, Hyundai Thanh Cong, the parent company of TC Group, has acquired the Royal Golf Course project through the acquisition of the project’s investor, PV-Inconess, from Vietinbank Capital.

Specifically, according to the extraordinary general meeting of shareholders in 2018, PV-Inconess shareholders approved TCG Land to receive the transfer of shares, resulting in ownership of 75% of the company’s capital without the need to carry out public tender procedures.

Shortly thereafter, on February 26, 2018, TCG Land announced that it would start the acquisition process.

Although the transfer deal was quite silent at that time, TCG Land – the company that became the parent company of PV-Inconess after the merger and acquisition – was not an “unknown” name.

TCG Land was established at the end of 2017 with a registered capital of VND 1,668 billion. The owner of TCG Land is Thanh Cong Group Joint Stock Company – a famous name in the automotive industry in Vietnam with a series of subsidiaries such as Hyundai Thanh Cong Vietnam, Hyundai Pham Hung, Hyundai Ninh Binh, Hyundai Tay Do, etc.

As for PV-Inconess, it was the first golf business to be listed on the stock market (listed on UpCOM from June 19, 2017).

According to the self-introduction of the company, PV-Inconess owns a real estate portfolio of over 2 million square meters in Ninh Binh, focusing on two major projects: the Royal Golf Course and the ecological tourism area at Dong Thai Lake.