The Project Management Board for the Investment in the Construction of Transportation Works in Ho Chi Minh City (referred to as the Traffic Management Board) has recently initiated legal proceedings against the Bank for Investment and Development of Vietnam (BIDV) – Chau Thanh Sai Gon Branch (Go Vap District, Ho Chi Minh City) to request the fulfillment of the committed guarantee obligations.
Prior to this, in the construction package of the Nguyen Anh Thu extended road project (former Hương Lộ 80) from Phan Van Hon Road (Hoc Mon District) to Vinh Loc Road (Binh Chanh District), the project’s investor, the Traffic Management Board, made an advance payment of VND 12.39 billion to Anh Vinh Group Joint Stock Company (Anh Vinh contractor). The advance payment was made for the contractor to carry out the work according to the contract.
Accordingly, BIDV – Chau Thanh Sai Gon Branch issued a letter of guarantee numbered 160/BL-BIDV.CTSG, committing to unconditionally guarantee and refund for the Traffic Management Board.
Subsequently, Anh Vinh contractor violated the contract by delaying the project’s progress and the contract was terminated. Therefore, the project’s investor requested the bank to guarantee the refund of the advance payment according to the obligations committed in the letter of guarantee.
The unfinished expansion project of Hương Lộ 80B
The Traffic Management Board has sent various letters to BIDV – Chau Thanh Sai Gon Branch requesting the fulfillment of the guarantee obligations as stated in the aforementioned letter of guarantee.
However, up until now, despite numerous requests and meetings between the two parties, the bank has yet to fulfill the obligation of refunding the advance payment that the Traffic Management Board has provided to Anh Vinh Group Joint Stock Company as committed in the guarantee.
According to the Traffic Management Board, the bank’s failure to fulfill the guarantee obligation has seriously violated the commitment in the letter of guarantee as well as violated Point a, Clause 2, Article 21 of Circular No. 07/2015/TT-NNNN regarding bank guarantees.
In order to avoid causing losses to the state budget, the Traffic Management Board officially notifies BIDV – Chau Thanh Sai Gon Branch that it will proceed with legal actions as prescribed. The Ho Chi Minh City Traffic Management Board requests the bank to promptly find appropriate solutions to fulfill the committed guarantee obligations.
