The Mystery of the ‘Golden Land’ in Ho Chi Minh City: Unraveling the Connection Between Quốc Cường Gia Lai and 39-39B Ben Van Don

The prime real estate location of 39-39B Ben Van Don, Ward 12, District 4, Ho Chi Minh City, has changed hands in a remarkable deal. This coveted land parcel was acquired by Quoc Cuong Gia Lai for a mere VND 6 billion in a strategic purchase of shares.

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As reported by Báo Công Thương on May 23, 2024, the Investigation Agency under the Ministry of Public Security (C03) issued Decision No. 33/OĐ-CSKT-P5 to launch a criminal case regarding “Violation of regulations on the management and use of state assets, causing loss and waste” at the Vietnam Rubber Industry Group, Dong Nai Rubber Company, Ba Ria Rubber Company, and related units.

C03 also issued decisions to prosecute and arrest nine defendants, former leaders of the Vietnam Rubber Industry Group, Dong Nai Rubber Company, Ba Ria Rubber Company, and Viet Tin Trading Services JSC. They were charged with “Violation of regulations on the management and use of state assets, causing losses and waste” under Article 219, Clause 3 of the 2015 Criminal Code.

The defendants were prosecuted and arrested in connection with irregularities in the project at 39-39B Ben Van Don, Ward 12, District 4, Ho Chi Minh City. This land plot is now the site of The Tresor project, owned by the Novaland Group.

39-39B Ben Van Don is now the site of The Tresor project, developed by a member of the Novaland Group – (Photo: Dieu Linh)

However, before becoming a large-scale real estate project as it is today, the land plot at 39-39B Ben Van Don underwent complicated transfers and transactions, turning state-owned land into private land.

Specifically, the land plot at 39-39B Ben Van Don, Ward 12, District 4, Ho Chi Minh City, covers an area of 6,202 square meters and was originally managed by Dong Nai Rubber Corporation and Ba Ria Rubber Company, under the Vietnam Rubber Industry Group.

On December 29, 2009, Dong Nai Rubber Corporation contributed VND 43.2 million (holding 72% of shares) and Ba Ria Rubber Company contributed VND 16.8 million (holding 28% of shares) to establish Phu Viet Tin JSC, headquartered at 39-39B Ben Van Don.

On March 25, 2010, the Ho Chi Minh City People’s Committee issued Decision No. 1366/QD-UBND to revoke and allocate the land at 39-39B Ben Van Don to Phu Viet Tin JSC for investment and business in accordance with the approved plan.

However, on September 10, 2014, Quoc Cuong Gia Lai JSC purchased the capital contributions of Dong Nai Rubber Corporation and Ba Ria Rubber Company in Phu Viet Tin JSC for nearly VND 6 billion, acquiring 99.5% of the shares in Phu Viet Tin JSC.

After acquiring the controlling stake, on November 14, 2014, Quoc Cuong Gia Lai JSC transferred 0.5% of Phu Viet Tin’s charter capital to Ms. Lai Thi Hoang Yen for VND 3 billion, 40% to Thinh Vuong Real Estate JSC for over VND 340 billion, and 54% to Biet Thu Thanh Pho JSC for more than VND 459 billion.

On March 31, 2017, Phu Viet Tin JSC signed a merger agreement with Phuc Nguyen Real Estate Investment and Development JSC to form Nova Phuc Nguyen Real Estate Investment and Development JSC (a subsidiary of Novaland Group).

Subsequently, Nova Phuc Nguyen JSC commenced the construction of a real estate project called The Tresor on the land plot at 39-39B Ben Van Don. The project features two towers, including a 33-story tower and a 17-story Officetel tower, both of which have been sold out to customers. The Tresor is one of the most successful projects of Novaland, thanks to its prime location.

In 2021, the Government Inspectorate issued Inspection Conclusion No. 757, stating that Phu Viet Tin JSC’s failure to establish an investment project for the 39 Ben Van Don project was a violation of legal regulations.

Additionally, the decision by the Ho Chi Minh City People’s Committee (Decision No. 1366) to revoke and allocate the land at 39-39B Ben Van Don to Phu Viet Tin JSC (a new legal entity) as the investor, without conducting an auction, was deemed inconsistent with the Land Law 2003 and Circular No. 03/2009 of the Ministry of Planning and Investment.

The Government Inspectorate requested the Ministry of Finance to inspect and handle the case accordingly. During the inspection, if there were any signs of criminal offenses involving state asset damage, the case would be transferred to competent authorities for handling. Following this, the Ministry of Finance directed the Finance Inspectorate to re-inspect the project based on the conclusions of the Government Inspectorate. The case file was then transferred to the investigative agency under the Ministry of Public Security for handling.