Over 1,000 Apartments Sold Illegally 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 Trading Service Company Limited Tuong Phong, was found to have numerous violations.
On June 15th, Mr. Nguyen Van Loi, Secretary of the Binh Duong 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 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, and luxury apartments.
Tuong Phong Company entered into a cooperation agreement with Mr. Nguyen Anh Dao for joint investment and profit sharing in the project. Subsequently, Tuong Phong Company signed a contract with Naviland Joint Stock Company (which holds 51% of Tuong Phong Company’s shares). Per this agreement, Naviland was authorized to invest in and distribute the project’s products through real estate distribution and brokerage companies to raise capital as regulated. This authorization remains valid until the completion of the transfer procedure from Tuong Phong Company to Naviland.
The project’s two high-rise towers were left unfinished and covered.
However, inspections revealed that since 2017, Naviland Company has illegally sold 1,082 apartments through purchase contracts, even though Tuong Phong Company had not been granted confirmation of eligibility to sell future homes. Despite this violation, Naviland Company has not paid the applicable fines.
In late 2021, Tuong Phong Company requested confirmation of eligibility to sell future homes at the Roxana Plaza project, but the Department of Construction has not granted it due to ongoing complaints from citizens regarding their contracts with Naviland. The Department of Construction has mandated that the three parties—Tuong Phong Company, Naviland Company, and the citizens who purchased apartments—must resolve all complaints and lawsuits before considering Tuong Phong Company’s request to mobilize capital.
A Series of Violations Remain Unaddressed
The authorities found that Tuong Phong Company had committed violations during the implementation of this real estate project. The Provincial People’s Committee imposed an administrative fine of VND 275 million for the project’s delay.
Despite the suspension of construction, the company continued to mobilize capital illegally, leading to customer dissatisfaction and complaints to the authorities. This situation also caused gatherings and disturbances to the 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 confirmation of eligibility to sell future homes, which is a violation of regulations.
Given that the project is about 80% complete, the Provincial Inspectorate recommended that the Provincial People’s Committee instruct the investor to continue implementing and completing the project as planned. The investor is also responsible for honoring the apartment sale contracts signed by Naviland Company with customers based on Tuong Phong Company’s authorization.
Regarding the handling measures, Tuong Phong Company must continue implementing the project according to the approved schedule and fulfill the contracts signed by Naviland Company under its authorization. Naviland Company must also 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.
Binh Duong: New Business Registrations Increase by 57.2%
From January 1st to January 15th, 2024, Binh Duong province witnessed the establishment of 327 new businesses, with a total registered capital of VND 1,845.7 billion, representing a 15.5% increase.
