The End of a Project: Bac Ninh Calls Time on New Life Hospital

The New Life Hospital Construction Investment Project, located in Tan Hong ward, Tu Son city, Bac Ninh province, was undertaken by High-Tech International Joint Stock Company Hamec, now known as New Life International General Hospital Joint Stock Company (referred to as Hamec Company). The project spanned over 70,000 square meters and was planned to include 300 hospital beds.

On May 13, 2028, the People’s Committee of Bac Ninh province initially allocated land for the project to Vietnam New Life Medical Joint Stock Company. However, the project experienced delays, and over a ten-year period, the provincial People’s Committee granted the investor a land use extension and adjusted the investment schedule twice.

According to the inspection conclusions of Bac Ninh province, several violations occurred during the project’s implementation. Specifically, the Department of Natural Resources and Environment (TN&MT) advised the People’s Committee to revoke the decision to allocate over 70,000 square meters of land to Vietnam New Life Medical Joint Stock Company and lease it to Hamec Company for building the New Life Hospital without verifying the former company’s financial obligations. As the company had not paid land rent from July 7, 2009, to December 11, 2013, it did not meet the conditions for project transfer as stipulated.

The Department of Natural Resources and Environment of Bac Ninh province also incorrectly determined the land rent calculation period in the land lease contract. Additionally, the Department of Planning and Investment (KH&DT) of Bac Ninh province advised the People’s Committee to grant the investment registration certificate to the project without completing certain procedures and processes.

Hamec Company provided untruthful reports regarding their financial situation and owner’s equity to the Department of Planning and Investment of Bac Ninh province. The company fell short of meeting the financial requirements to carry out the project, as evidenced by their financial reports from 2011 to 2013, which showed owner’s equity below the committed 100 billion VND.

During the project appraisal, the Department of Planning and Investment of Bac Ninh province failed to inform the People’s Committee about Hamec Company’s insufficient owner’s equity. Moreover, the Department of Natural Resources and Environment, when consulted about the investment policy, omitted to mention Hamec Company’s violations of land-related regulations.

Notably, Hamec Company submitted inaccurate financial statements to the Department of Planning and Investment as a basis for deciding on the investment policy and issuing the amended investment registration certificate. These documents showed signs of data manipulation to meet the required 20% owner’s equity for the project. Furthermore, on June 9, 2021, the company provided untruthful reports on the project’s progress.

According to the inspection conclusions, the investor delayed the project implementation, leading to two adjustments in the investment schedule. As of the inspection, the project had not completed the registered main items and had not become operational. From 2018 until now, after the COVID-19 pandemic subsided, Hamec Company has not carried out any construction activities on the project land, indicating their lack of capacity to execute the project. The inspection conclusions also pointed out violations related to construction planning and financial obligations regarding land use.

The Inspection of Bac Ninh province clearly stated that the responsibility for the violations and shortcomings lies with the Department of Natural Resources and Environment, the Department of Planning and Investment of Bac Ninh province, the People’s Committee of Tu Son city and Tan Hong ward, the Tax Department of Bac Ninh province, the Tax Office of Tu Son – Yen Phong area, High-Tech International Joint Stock Company Hamec, and Vietnam New Life Medical Joint Stock Company.

The Inspection of Bac Ninh province recommended that the Department of Planning and Investment advise and report to the Chairman of the Provincial People’s Committee to issue a decision to terminate the operation of the New Life Hospital Construction Investment Project. Additionally, they suggested that the Department of Natural Resources and Environment advise the Chairman of the Provincial People’s Committee to issue a decision to retrieve the land. The Chairman of the People’s Committee of Bac Ninh province agreed with the Inspection’s recommendations.

Furthermore, the Inspection of Bac Ninh province proposed that the heads of the Department of Home Affairs, the Department of Planning and Investment, the Department of Natural Resources and Environment, the Tax Department, the Tax Office of Tu Son – Yen Phong area, the People’s Committee of Tu Son city, and the People’s Committee of Tan Hong ward organize inspections to clarify the responsibility of collectives and individuals involved in the violations mentioned in the inspection conclusions.