The Phuc Son Group, owned by Mr. Nguyen Van Hau (also known as Hau “Phao”), is currently the center of attention in Vinh Phuc province. Many investors of Phuc Son Group projects are restless as they witness a 40-50% drop in the value of their invested plots of land.
It once created a land fever in Vinh Phuc. The project of the agricultural and food market, warehousing system, and commercial urban area in Vinh Tuong by Phuc Son Group has a prime location, close to the industrial and commercial cluster of Vinh Tuong district. Originally, the project was invested by Thang Long Investment and Real Estate Trading Joint Stock Company with a total capital of over 2,000 billion VND. In 2019, the project was transferred to Phuc Son Group. Currently, the project has undergone a total of 4 planning adjustments.
During the golden age, this project caused an unprecedented land fever in Vinh Phuc.
According to our research, the project is located in Tho Tang town (Vinh Tuong district) and is considered the most expensive land in Vinh Phuc. During the land fever in 2021, the price of land in this project reached 115 million VND per square meter.
Responding to reporters, Mr. Tran Tuyen (40), a small trader in the Vinh Tuong wholesale market, said: “In 2021, a frontage plot (33m road) with an area of 100m2 reached over 11 billion VND, while a plot in section 2 was priced at 80-90 million VND per square meter.”
 The project of the agricultural and food market, warehousing system, and commercial urban area in Vinh Tuong by Phuc Son Group once caused a land fever in Vinh Phuc. Photo: Xuan Hau |
“In 2022, I bought 200m2 of land in this project for over 16 billion VND, and after less than two years, I received about 80 million VND/m2 (the same price I bought it for). So, considering the average interest rate of current banks, I have lost over 10% of the value,” said Mr. Tuyen.
Meanwhile, Ms. Minh Hang, a real estate broker, shared that in 2021, the project sold very well, with many people coming to see and seal deals due to their trust in the large investor and the prime location in Tho Tang town. Each stall in the market was offered with prices ranging from 800 million VND to several billion VND, depending on the location. The inventory was constantly updated and sold out quickly.
“At that time, the prices were very high. Many investors from Hanoi and Bac Giang flocked there, including within Vinh Phuc province. At one point, I sealed deals for 3-4 adjacent units in the inner section, 200m away from the main road, with prices at 48 million VND/m2. As for the shophouses on the outer side of the 33m road, the owners had bought them in advance, and some units were priced at 115 million VND/m2 without anyone selling. Some people even bought 3-4 adjacent units,” said Ms. Hang.
During the land fever in April 2021, hundreds of customers came to see and deposit money for Phuc Son Group’s project in Tho Tang town, Vinh Tuong district. Photo: Xuan Hau |
Currently, after the land fever and the arrest of the Chairman of Phuc Son Group, transactions in the agricultural and food market, warehousing system, and commercial urban area in Vinh Tuong have cooled down. The majority of the project remains deserted, with unfinished adjacent houses and overgrown weeds.
Our survey shows that there are about 10 stalls in the market area being used for storage and commercial trading, while the adjacent house blocks are deserted, with many units still under construction.
People living near the project say that the project lacks buyers’ interest, even though the land fever has returned in some localities such as Hanoi, Bac Giang, and Bac Ninh after the Tet holiday.
Unfinished adjacent houses showing signs of deterioration in Vinh Tuong market project. Photo: Xuân Hậu |
“There are almost no transactions. Currently, only one investor owns 2 adjacent units and wants to sell them at a loss of 40%, but no one is interested. The two units were bought for 45 million VND/m2 in 2022, with a total value of 9 billion VND. Now, these two units are being offered for sale at 6 billion VND, but no one asks about them, even though the legal procedures are very guaranteed,” said a small trader in Tho Tang town.
The residents in Tho Tang town mostly have legal understanding; therefore, the number of people affected by this incident is not high. The district has obtained enough information and will guide how to support the investors the best,” the leader added.
Khôi Lâm – Văn Hậu
