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 and Trading Service Company Limited Tuong Phong, was found to have numerous violations, leading to the Provincial People’s Committee issuing a conclusion requiring the investor to strictly adhere to the inspection findings.
On June 15th, Mr. Nguyen Van Loi, Secretary of the Binh Duong Party Committee, chaired a regular meeting with citizens and assigned the Department of Construction to coordinate with the People’s Committee of Thuan An City to establish a special task force to monitor, urge, and guide the resolution of this issue. A report on the progress is expected to be submitted to the Provincial Party Committee Standing Committee 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 several components, including a commercial center, office space for lease, and luxury apartments.
Tuong Phong Company entered into a cooperation agreement with Mr. Nguyen Anh Dao for joint capital contribution and profit sharing. Subsequently, Tuong Phong Company signed a contract with Naviland Joint Stock Company (which holds 51% of Tuong Phong Company’s shares). As per the agreement, Naviland was authorized to invest in and distribute products of the Roxana Plaza project through real estate distribution and brokerage companies to mobilize capital as regulated. This authorization remains valid until the completion of the transfer procedure from Tuong Phong Company to Naviland.
The project, with two high-rise towers under construction, has been dormant for years.
However, inspections revealed that since 2017, Naviland Company has signed contracts for the transfer of 1,082 apartments to customers in the form of apartment sale and purchase contracts, even though Tuong Phong Company had not been granted a certificate of eligibility for selling future homes, which is a violation of regulations. Despite this, Naviland Company has not paid the fines as required.
In late 2021, Tuong Phong Company submitted a request for eligibility confirmation to sell future homes in the Roxana Plaza project, but the Department of Construction has not granted permission due to ongoing complaints from citizens regarding their contracts with Naviland. The Department of Construction of the province has required the three parties involved—Tuong Phong Company, Naviland Company, and the citizens who purchased the apartments—to resolve all complaints and petitions before considering granting Tuong Phong permission to mobilize capital as per regulations.
A Series of Violations Remain Unaddressed
According to the authorities, Tuong Phong Company has committed violations in the implementation of the real estate business project. The Provincial People’s Committee has issued an administrative violation decision, fining the company VND 275 million for project delays.
Despite the suspension of construction, the company had mobilized capital without meeting the necessary conditions, leading to customer dissatisfaction and complaints to the authorities, as well as gatherings that disrupted security and order in the area.
The two apartment towers seen from above.
The inspection also concluded that the investor had authorized the signing of apartment sale and purchase contracts before obtaining approval from the competent authority to inspect and accept the infrastructure and before confirming eligibility for selling future homes, which is not in line with regulations.
Furthermore, as the project has already reached approximately 80% completion, the Provincial Inspectorate recommended that the Provincial People’s Committee request the investor to continue implementing and completing the project as per the approved planning. The investor is also responsible for honoring the apartment sale contracts signed by Naviland Company with customers based on the authorization granted by Tuong Phong Company.
Regarding the handling measures, Tuong Phong Company must continue implementing the project according to the approved schedule and fulfilling the contracts signed by Naviland Company under its authorization. Naviland Company is obliged to comply with the law in real estate business activities and pay the fine of VND 275 million as per the Provincial People’s Committee’s decision.
This project has been dormant for years, and the investor has not seriously implemented the inspection conclusions.
