Illegal Sale of Over 1,000 Apartments in Binh Duong Province, Vietnam
On August 1st, representatives from the Binh Duong Province Department of Construction revealed that the Contentment Plaza commercial and residential project (also known as Roxana Plaza) has been subject to an inspection by the Provincial Inspectorate. The project, developed by Real Estate Investment Trading Service Co., Ltd., was found to have numerous violations, including the illegal sale of over 1,000 apartments.
On June 15th, Mr. Nguyen Van Loi, Secretary of the Provincial Party Committee, instructed the Department of Construction and the People’s Committee of Thuan An City to establish a special task force to monitor and guide the resolution of this issue. The task force is expected to report its findings by the end of August.
According to the inspection conclusions, the Roxana Plaza project, located in Vinh Phu Ward, Thuan An City, spans an area of 8,423 square meters and comprises a commercial center, office space, and luxury apartments. The developer, Real Estate Investment Trading Service Co., Ltd., entered into a joint venture agreement with Mr. Nguyen Anh Dao, and subsequently signed a contract with Naviland Joint Stock Company, which holds a 51% stake in Real Estate Investment Trading Service Co., Ltd. Naviland was authorized to invest in and distribute the project, with the authority to sign contracts with real estate distribution companies to mobilize capital.
The project, with two high-rise towers, has been left unfinished.
Since 2017, Naviland has signed contracts for the sale of 1,082 apartments, despite Real Estate Investment Trading Service Co., Ltd. not having obtained confirmation from the authorities that they are eligible to sell future homes. To date, Naviland has not paid the fines imposed for these violations.
In late 2021, Real Estate Investment Trading Service Co., Ltd. applied for confirmation of eligibility to sell future homes in the Roxana Plaza project, but the Department of Construction has not granted permission due to ongoing complaints from customers who signed contracts with Naviland. The Department of Construction has stated that the three parties involved—Real Estate Investment Trading Service Co., Ltd., Naviland, and the customers—must resolve all complaints and disputes before the company will be allowed to mobilize capital as per regulations.
A Series of Violations Remain Unaddressed
The authorities have pointed out that Real Estate Investment Trading Service Co., Ltd. has committed several violations in the implementation of this real estate project. The Provincial People’s Committee has issued an administrative fine of VND 275 million for the project’s delay.
Despite the suspension of construction, the company continued to mobilize capital, leading to customer dissatisfaction and complaints to the authorities. The situation has also resulted in gatherings and protests, affecting security and order in the area.
The two apartment towers seen from above.
The inspection conclusions also noted that the sale of apartments without the necessary confirmation from the authorities was improper.
The Provincial Inspectorate has recommended that the Provincial People’s Committee instruct the investor to continue the project as per the approved plan and complete it according to the approved schedule. The investor is also responsible for fulfilling the apartment sale contracts signed by Naviland with customers based on the authorization granted by Real Estate Investment Trading Service Co., Ltd.
Regarding the handling of violations, Real Estate Investment Trading Service Co., Ltd. must resume the project according to the approved schedule and fulfill the contracts signed by Naviland with customers. Naviland is required to comply with real estate business laws and pay the fine of VND 275 million as per the Provincial People’s Committee’s decision.
This project has been left unfinished for years, and the investor has not seriously addressed the inspection conclusions.
