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 Trading 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, 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.
Located in Vinh Phu Ward, Thuan An City, the Roxana Plaza project covers an area of 8,423 square meters and comprises several components, including a commercial center, office space, and luxury apartments.
Tường Phong entered into a joint venture agreement with Mr. Nguyen Anh Dao for the development and profit-sharing of the project. Subsequently, Tường Phong signed a contract with Naviland JSC, which holds a 51% stake in Tường Phong. As per the agreement, Naviland was authorized to invest in and distribute the project’s products through real estate distribution and brokerage companies. This authorization was valid until the transfer procedure from Tường Phong to Naviland was completed.
The project’s two high-rise towers remain unfinished.
Despite not having obtained confirmation from the authorities to sell future homes, Naviland proceeded to sign contracts for the transfer of 1,082 apartments to customers since 2017, which is a violation of regulations. However, Naviland is yet to pay the fines imposed for these violations.
In late 2021, Tường Phong applied for confirmation to sell future homes in the Roxana Plaza project, but the Department of Construction has not granted permission due to ongoing complaints from customers regarding their contracts with Naviland. The Department has stated that the three parties involved—Tường Phong, Naviland, and the customers—must resolve all complaints and disputes before Tường Phong can be allowed to mobilize capital as per regulations.
A Series of Violations Remain Unaddressed
According to the authorities, Tường Phong has committed several violations in the implementation of this real estate project. The Provincial People’s Committee has issued an administrative penalty decision, fining the company VND 275 million for delays in project progress.
Despite the suspension of construction, the company continued to mobilize capital, leading to customer dissatisfaction and complaints to the authorities. This situation also caused gatherings and disturbances to social order in the area.
The two apartment towers seen from above.
The inspection findings also revealed that the investor had authorized the signing of apartment sale and purchase contracts before obtaining confirmation from the competent authority that the infrastructure had been inspected and approved and that future home sales conditions were met. This action is not in compliance with the regulations.
The inspection conclusion states that, given the project’s 80% completion rate, its finalization is highly feasible. The Provincial Inspectorate has recommended that the Provincial People’s Committee instruct the investor to continue the project as per the approved plan and honor the apartment sale contracts signed by Naviland with customers based on Tường Phong’s authorization.
Regarding the handling measures, Tường Phong is required to resume the project as per the approved schedule and fulfill the contracts signed by Naviland under its authorization. Naviland, for its part, must comply with real estate business regulations and pay the VND 275 million fine imposed by the Provincial People’s Committee.
This project has been left idle for years, and the investor has not seriously addressed the inspection findings.
