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) had been subject to an inspection by the Provincial Inspectorate. The project, developed by Real Estate Investment Commerce Services Co., Ltd. (Tường Phong), 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, chaired a regular meeting with citizens and instructed the Department of Construction and 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 results 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.
Tường Phong Company entered into a cooperation agreement with Mr. Nguyen Anh Dao for joint investment and profit sharing in the project. Subsequently, Tường Phong Company signed a contract with Naviland Joint Stock Company (which holds 51% of Tường Phong Company’s shares). This contract authorized Naviland to invest in and distribute the project’s products through real estate distribution and brokerage companies to mobilize capital as regulated. The authorization was valid until the completion of the transfer procedure from Tường Phong to Naviland.
The project’s two high-rise towers were left unfinished and covered.
Inspections revealed that since 2017, Naviland had signed contracts for the transfer of 1,082 apartments to customers in the form of apartment sale and purchase contracts, even though Tường Phong had not been granted a certificate of eligibility for selling future homes, which is a violation of regulations. However, Naviland has not paid the fines imposed by the authorities to date.
In late 2021, Tường Phong applied for eligibility to sell future homes at the Roxana Plaza project, but the Department of Construction has not granted permission due to ongoing complaints from buyers regarding their contracts with Naviland. The Department of Construction has requested that the three parties—Tường Phong, Naviland, and the buyers—resolve all complaints and lawsuits before considering granting permission to Tường Phong to mobilize capital as per regulations.
A Series of Violations Remain Unaddressed
According to the authorities, Tường Phong has committed violations in the implementation of this 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 continued to mobilize 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 not been authorized to sign apartment sale and purchase contracts before obtaining approval from the competent authority to inspect and accept the infrastructure and eligibility for selling future homes.
Furthermore, the inspection suggested that the project, with a completion rate of about 80%, has a high likelihood of being finished. The Provincial Inspectorate recommended that the Provincial People’s Committee direct the investor to continue implementing the project as per the approved plan and fulfill the apartment sale contracts signed by Naviland with customers based on Tường Phong’s authorization.
Regarding the handling measures, Tường Phong must continue executing the project according to the approved schedule and honor the contracts signed by Naviland with customers under Tường Phong’s authorization. Naviland is obliged to comply with real estate business regulations and pay the fine of VND 275 million as per the Provincial People’s Committee’s decision.
This project has been left idle for years, and the investor has not seriously addressed the inspection conclusions.
