Nguyen Toan Thang, Director of the Ho Chi Minh City Department of Natural Resources and Environment, has signed a notice to revoke and cancel the land use rights certificate (red book) issued for a plot of land of nearly 31,000 square meters at 152 Tran Phu Street, District 5.
The “golden land” at 152 Tran Phu Street, District 5 has three facades: Tran Phu, Le Hong Phong, and Tran Nhan Ton. This land is intended for the construction of office buildings, commercial centers, services, hotels, and luxury apartments.
The “golden land” at 152 Tran Phu Street, District 5 with three facades: Tran Phu, Le Hong Phong, and Tran Nhan Ton. Photo: Pham Nguyen.
Previously, on January 19, 2005, the Department of Natural Resources and Environment had delegated authority to the Chairman of the Ho Chi Minh City People’s Committee to grant a certificate to the Vietnam National Tobacco Corporation (now the Vietnam National Tobacco Corporation – Vinataba).
In 2012, the Saigon Tobacco Factory – a wholly-owned subsidiary of Vinataba – completed the relocation to the Vinh Loc Industrial Park, Binh Chanh District.
However, in 2008, Vinataba and the Saigon Tobacco Company decided to invest in a commercial project on the 152 Tran Phu land, along with partners such as VI NA TA BA Trading and Investment Joint Stock Company (a Vinataba member), Do Thanh Viet Company Limited, and the Dream House Trading Construction Joint Stock Company (now DRH Holdings Joint Stock Company). The project was granted an investment certificate on October 13, 2008, and a land use rights certificate on January 19, 2009.
The consolidated financial statements for the period from January 1, 2017, to June 30, 2017, issued by Vinataba on May 3, 2018, stated that on June 13, 2017, Vinataba transferred shares in Vina Alliance Co., Ltd. to Son Dong Co., Ltd. The transfer value between the two parties amounted to over VND 270 billion. After deducting the original investment value on the accounting books, Vinataba earned a profit of over VND 94 billion.
Furthermore, Vinataba indirectly owned an additional 7.5% stake in Vina Alliance Co., Ltd. through the Saigon Tobacco Company. Similarly, the Saigon Tobacco Company transferred this 7.5% stake to Son Dong Co., Ltd. for over VND 100 billion, making a profit of over VND 35 billion.
According to the amended enterprise registration certificate issued on September 27, 2017, Son Dong Co., Ltd. increased its stake in Vina Alliance to 38%. Meanwhile, Vinataba and Vinataba Saigon completely disappeared from Vina Alliance. This means that they are no longer involved in the 152 Tran Phu project.
In October 10, 2022, the Government Inspectorate issued a conclusion on the inspection of compliance with laws in capital management, capital use, asset use, capital divestment, and restructuring in Vinataba. The inspection conclusion specifically stated that in the construction investment process, Vinataba had violated regulations by contributing capital to the 152 Tran Phu project without reassessing its assets; going against the Prime Minister’s instructions and violating regulations on the transfer of enterprise assets owned 100% by the State without obtaining the Prime Minister’s approval; not conducting auctions for land use rights that could potentially cause losses to the State and enterprises.
Inside the “golden land” at 152 Tran Phu Street, District 5. Photo: Pham Nguyen.
In accordance with the conclusions of the Government Inspectorate, on October 25, 2023, the Ho Chi Minh City People’s Committee issued a decision to revoke the land.
On January 10, the Ho Chi Minh City Land Registration Office also sent a letter requesting Vina Alliance to urgently hand over the original land use rights certificate. However, the company has not complied with this request.
Since Vina Alliance Company has failed to fulfill the requirement to return the land use rights certificate for the land at 152 Tran Phu Street, the Ho Chi Minh City Department of Natural Resources and Environment announced that this certificate no longer has legal validity.
