Former HDTC Chairman Arrested for Embezzlement
On July 3rd, Ho Chi Minh City police arrested and charged Mr. Dinh Chi Minh, Chairman and CEO of Housing Development and Trading Corporation (HDTC), with embezzlement. Mr. Minh is the brother of former HDTC Chairman, Mr. Dinh Truong Chinh, who was previously arrested and charged with abuse of trust and appropriation of property.
Mr. Minh took over as Chairman and legal representative of HDTC after his brother’s arrest. However, he now faces allegations of embezzlement, with authorities investigating his involvement in the misappropriation of state assets.
An Khanh Apartment Building. Source: HDTC
The investigation has revealed that Mr. Chinh and Mr. Nguyen Huu Thien Ngan, the former General Director of Southern Food Corporation, violated laws regarding the management and use of state assets, causing serious damage to the state.
During the investigation, several individuals came forward to accuse Mr. Chinh of wrongdoing during his tenure at HDTC. Customers who had purchased land in the An Phu – An Khanh urban area in Thu Duc City, developed by HDTC, also accused Mr. Chinh and his associates of using deceptive tactics and failing to honor their contract commitments.
It was found that Mr. Chinh unilaterally terminated contracts and refused to hand over the land plots to customers, instead appropriating the plots and reselling them to others for hundreds of billions of dong.
Authorities are continuing to investigate the remaining allegations against Mr. Chinh, including his involvement in the mismanagement of state assets and abuse of trust.
HDTC’s Partnership with Him Lam at the Ba Thien Industrial Park
Housing Development and Trading Corporation (HDTC), formerly a state-owned enterprise under Resco, became a joint-stock company in April 2016.
As per the 2022 audited financial statements, Mr. Dinh Truong Chinh, along with related shareholders such as Ms. Dinh Ngoc Chau Huong and FR Real Estate Investment and Finance JSC, held nearly 70% of the shares, while Resco held 30%.
The 2022 financial statements also revealed that HDTC had receivables of VND 1,385 billion from Him Lam Land JSC, a real estate company. This amount included advance interest on infrastructure business cooperation in the Ba Thien Industrial Park and amounts receivable under a basic cooperation investment contract between the two companies.
This indicates a collaboration between HDTC and Him Lam Land in the investment and exploitation of the Ba Thien Industrial Park.
HDTC’s 2022 Financial Statements
The Ba Thien Industrial Park – Phase 1, located in Vinh Phuc province, was originally developed by HDTC. With a total investment of VND 2,500 billion, the project covers an area of 247.36 hectares. As of the end of 2022, the accumulated investment in the project had reached VND 2,145 billion.
According to HDTC’s 2022 financial statements, the Ba Thien Industrial Park project was a key focus for the company. The project also received significant funding from Sacombank – Bac Ninh Branch, with advanced revenue from customers reaching VND 2,913 billion.
Sacombank is HDTC’s largest creditor, with total loans and financial leases amounting to VND 1,100 billion, accounting for 56% of the company’s total debt.
HDTC has been a pioneer in developing large-scale residential projects in Ho Chi Minh City, including the Binh Trung Residential Area (District 2), Binh Chanh Residential Area (Binh Chanh District), and the An Phu – An Khanh New Urban Area (District 2). The company has also focused on investing in infrastructure and high-rise buildings.
From 2019 to 2022, HDTC’s revenue fluctuated but remained around VND 1,000 billion, while profits increased steadily over the same period. However, in 2022, the company faced challenges, with revenue and profits declining significantly.
As of the end of 2022, HDTC’s total assets stood at VND 12,493 billion, a 41% increase from the previous year. Total liabilities amounted to VND 8,700 billion, an increase of over VND 2,600 billion.
In November 2023, HDTC announced a temporary suspension of its operations due to financial difficulties. The company informed its employees that they would be placed on unpaid leave until further notice.
Trial of Vạn Thịnh Phát Case from 5/3 – 29/4
The Ho Chi Minh City People’s Court will hold the first-instance trial of 86 defendants in the Vạn Thịnh Phát case from March 5th to April 29th.
Summoning Thousands of People to the Trial of Ms. Truong My Lan
In addition to the 86 defendants, the court has also summoned over 2,400 individuals with relevant rights and obligations, including nearly 200 lawyers, to serve in the trial of the misconduct case at SCB Bank and VTP Corporation.
Who are the 5 persons summoned for questioning in the Vạn Thịnh Phát case?
TAND TP HCM urges defendants to surrender to enjoy the leniency policy of the Party and the State.
How did 5 fugitive former SCB bank executives assist Ms. Truong My Lan?
The 5 defendants, former employees of SCB Bank, have been identified as actively assisting Truong My Lan in withdrawing money from the bank, resulting in significant consequences.
Reason behind the arrestation of a bank employee in Quang Nam
After apprehending a former bank branch manager, the Quang Nam Provincial Police has arrested 3 more suspects involved.
