9 projects to be ‘terminated’ in 2022
Specifically, one month after Mr. Quyet was arrested, in April 2022, the Chairman of the Binh Phuoc Provincial People’s Committee issued a document to cancel the planning of a new urban area project, combined with the Suoi Cam tourist resort of FLC.
According to the planning project, the Suoi Cam project has a planned area of about 1,775 hectares, located in the northwest of Dong Xoai city. The items include: commercial and service center, sports and fitness center, villas, neighboring houses, cultural villages of ethnic groups, public centers, resort hospitals, 5-star resorts combined with 18-hole golf courses, providing high-end accommodation and entertainment services…
In May 2022, the Chairman of the Kon Tum Provincial People’s Committee issued a document to revoke the survey and investment research decision for two projects, namely the FAM – Kon Tum high-tech agriculture project and the FLC Mang Den golf, tourism, entertainment complex and urban area.
These two projects are expected to use over 822 hectares of land in Kon Plong district. In which, the FAM – Kon Tum high-tech agriculture project covers 155 hectares and the FLC Mang Den golf, tourism, entertainment complex and urban area covers 677 hectares.
According to the Kon Tum Provincial People’s Committee, both projects were approved by the province for FLC to conduct surveys and investment research since 2018. However, the survey period has expired but the investors have not completed the project preparation and related procedures. Meanwhile, the FLC Mang Den project has been revoked due to its inconsistency with the overall planning of Mang Den town.
In June 2022, Binh Dinh province also had documents terminating the operation of the premium eco-resort project, Eo Gio, of FLC. The reason given was that the project did not comply with the registered schedule with the state agency.
FLC used to manage and operate the Eo Gio tourism in Binh Dinh.
Located in the FLC Quy Nhon Beach and Golf Resort complex (in Nhon Ly commune, Quy Nhon city), the premium eco-resort Eo Gio project covers more than 17.3 hectares of land and nearly 4.3 hectares of beach area in Nhon Ly commune. It consists of a 6-star resort according to international standards.
In the Central Highlands region, in July 2022, FLC had 4 projects revoked by Gia Lai province. They are FLC Pleiku tower, hotel, commercial and service center, high-end apartments in Tay Son ward, Hoi Thuong ward, Pleiku city; 5ha and 3ha of land on Nguyen Chi Thanh Street, Pleiku city; Cao Nguyen Hill cultural tourist site in Ia Der commune, Ia Grai district and Dien Hong ward, Pleiku city; Ho – Chu Sang Ya Sea tourism area in Pleiku city and Chu Pah district.
These four projects were approved by Gia Lai province for FLC to conduct research, survey, and detailed planning at the 1/500 scale from 2018-2019.
At that time, a representative of Gia Lai Department of Planning and Investment said that the projects for research in the province had not yet had zonal plans and had not adjusted the Pleiku city plan, so the surveys had to be suspended.
In the South, in August 2022, the Chairman of the Soc Trang Provincial People’s Committee instructed specialized agencies to complete procedures to submit to the Provincial People’s Committee for approval to terminate the investment decision for the new freshwater urban area, which was invested by FLC.
Prior to that, on March 18, 2020, the Soc Trang Provincial People’s Committee issued a decision approving the selection of FLC as the investor of the New Freshwater Urban Area project. However, by the time it was revoked, FLC had not signed a land lease contract and had not completed the investment procedures.
The New Freshwater Urban Area project has a total investment capital of nearly VND 2,500 billion, covering an area of 47 hectares, including 14.64 hectares for construction purposes. The project aims to build an urban area connected with a recreational park, including residential areas, comprehensive commercial and service facilities, cultural centers, sports centers, and other urban utilities to serve the needs of residents in the area. The project is located in Ward 5 and Ward 6, Soc Trang city.
In addition, in November 2022, the Hoa Binh Provincial People’s Committee agreed to terminate the operation of the Yen Thuy tourist complex, resort, and golf course project in Huu Loi commune and Hang Tram town, Yen Thuy district, just 8 months after approving the investment decision.
FLC has been supported by the local authorities in land compensation and clearance on an area of 129 hectares and completed the documents to request the allocation of 18.2 hectares of state-managed land for the project.
However, FLC has not carried out the procedures for land use rights transfer, registration of land use changes, and other legal procedures as prescribed, leading to the inability to implement the project as scheduled.
The project includes a 36-hole golf course; 5-star hotel; conference center and resort. The land area of the project is 150.3 hectares, in which the golf course and auxiliary works cover an area of over 1.4 hectares.
The total investment capital of the project is VND 2,883.2 billion, in which the investor’s own capital is VND 438.5 billion (accounting for 15.2%), the remaining amount of over VND 2,444 billion is borrowed capital from banks.
3 more projects revoked in 2023
In the second half of 2023, FLC continues to have its projects revoked by localities. Specifically, in mid-November 2023, the Management Board of High-tech Agricultural Application Zone of Phu Yen province decided to terminate the investment project of FAM – Phu Yen high-tech agriculture.
The project is carried out by FLC Biscom Agriculture Limited Liability Company – the enterprise in charge of developing FLC’s high-tech agriculture sector as the investor.
The reason for terminating the project is that FLC Biscom does not have the capacity to overcome the suspension conditions under Article 2, Clause 2, Article 48 of the Investment Law. The Management Board of High-tech Agricultural Application Zone of Phu Yen province requested the project investor to complete the project liquidation procedures and fulfill the obligations according to legal regulations.
The FAM – Phu Yen project was granted an investment certificate in March 2019, and construction started about 6 months later.
The project has a total investment capital of VND 378 billion, with an area of nearly 94 hectares of land and a construction scale of 118.65 hectares. The project aims to build areas for production and cultivation of vegetables, tubers, fruits…, safe and clean quality, serving export and consumption; applying high-tech models in production, preservation, and processing; creating a supply source to serve future projects and tourism complexes of FLC Group.
Also in November, FLC’s industrial park worth trillions in Thanh Hoa was also “terminated”. It is the Hoang Long Industrial Park with an area of over 286 hectares, total investment of over VND 2,300 billion.
Gate of FLC Hoang Long industrial park in Thanh Hoa
The Hoang Long Industrial Park broke ground on September 22, 2015. According to FLC’s commitment, by the end of 2017, the industrial park would be filled with projects in phase 1 covering an area of 286 hectares and prepare conditions to implement the investment of the industrial park in phase 2. However, to date, this project has been abandoned for many years.
Most recently, the International General Hospital in Thai Binh province, invested by FLC, also had its land area of over 12 hectares for the project revoked by Thai Binh Provincial People’s Committee.
After revocation, Thai Binh Provincial People’s Committee assigned the Land Development and Natural Resource Technology Development Center – Department of Natural Resources and Environment of Thai Binh province to manage this land area.
Prior to 2019, Thai Binh Provincial People’s Committee had given FLC the land area of over 12 hectares in Tran Lam ward and Vu Chinh commune (Thai Binh city) to build the International General Hospital of Thai Binh province. The land lease period is from February 13, 2019, to the end of February 11, 2069, in the form of state land lease, paying annual land rent.
On February 14, 2019, FLC held a groundbreaking ceremony for the project. According to the introduction, the hospital has a scale of 1,000 beds, with a total investment capital of over VND 3,700 billion. It is expected to be the largest general hospital in Thai Binh as well as neighboring provinces, and also a hospital built according to the standard of a hotel, an international standard, and high-class hospital.
The decision to revoke the project land took place more than 2 years after FLC announced the termination of the investment project. When the project was being implemented, on July 28, 2021, FLC, for some reason, sent a document requesting the Thai Binh Provincial People’s Committee and the Department of Planning and Investment of Thai Binh province to guide the termination procedures for this project.
On August 9, 2021, FLC officially sent a notice of termination of investment project activities to return the project to the Thai Binh Provincial People’s Committee, and at the same time, requested the Thai Binh Provincial People’s Committee to refund the previously signed deposit of VND 10 billion.
Based on the provisions of the Investment Law, on August 13, 2021, the Thai Binh Department of Planning and Investment issued a notice of the termination of the project’s activities since August 9, 2021, to the relevant agencies and units.
