The Grand Cocobay Project: Unveiling a New Era of Prosperity

8 November, 2024

As of mid-April 2024, The Empire project, a luxury resort and residential development, has come to a standstill. Thành Đô Investment, Construction, and Development JSC, the project’s investor, reported to the Danang People’s Committee and the Department of Construction about the project’s expected restart in early May.

According to the investor, the project has been stalled due to the impact of the Covid-19 pandemic and its aftermath. They are currently rushing to prepare for the restart.

The massive Cocobay project remains silent, with no construction workers in sight. Photo by Diệu Thuỳ

The company plans to restart the project with multiple completion milestones. For instance, the HH3 subdivision, including a commercial building, hotel apartments, and luxury condominiums in Cổ Cò 1, is slated for completion in October 2024. The adjacent Garden Street Houses are expected to be finished by September 2024. The HH2 subdivision, featuring a commercial building, hotel apartments, and high-end condominiums in Cổ Cò 3, is anticipated to be completed by June 2025.

However, a site visit by our reporters revealed no construction activities. The project site is quiet, with many structures left unfinished after completing only the framework. After a prolonged hiatus, several components are deteriorating, with rusted steel and overgrown weeds.

Inside the project, many components are left unfinished and abandoned. Photo by Diệu Thuỳ

A security guard is stationed at the main entrance, keeping watch. According to the guard, there has been no construction for a long time, and they are unsure when it will resume.

Mr. Nguyễn Tiến Mẫn, Chairman of Hòa Hải Ward, Ngũ Hành Sơn District, Danang, confirmed that there has been no activity at the project site, and the local authorities have not received any updates from the investor.

The Investor Faces Bankruptcy Proceedings:

Recently, customers of the Cocobay project received a document from Thành Đô Investment, Development, and Construction JSC. The company disclosed that they are currently subject to bankruptcy proceedings initiated by the Hanoi Court on June 20, 2024, following the court’s acceptance of a bankruptcy petition filed by R.E.E Service and Technical Refrigeration Engineering JSC, one of their contractors.

A partially constructed building at the Cocobay project. Photo by Diệu Thuỳ

According to the decision of the Ngũ Hành Sơn District Enforcement Agency, Danang, Thành Đô JSC must pay R.E.E JSC an amount exceeding VND 153 billion. Since November 2023, Thành Đô JSC has sent multiple documents to R.E.E JSC regarding the settlement of this debt. However, the contractor has neither responded nor cooperated to resolve this issue.

Thành Đô JSC argued that during the bankruptcy petition proceedings, they were not invited to determine their solvency, and there has been no meeting for the parties to discuss debt repayment.

As a result, Thành Đô JSC has filed a petition with the Hanoi Higher People’s Court to annul the previous decision. So far, they have not received any notification from the court regarding this request.

Rusty steel and overgrown weeds signify the project’s deterioration. Photo by Diệu Thuỳ

Thành Đô JSC also disclosed that the entire Cocobay project has been mortgaged to SHB Bank as collateral for their loans. According to the 2014 Bankruptcy Law, SHB Bank has the right to dispose of the mortgaged Cocobay project to recover the loans. This situation puts customers and contractors in a challenging position to recover their debts from Thành Đô JSC.

The company affirmed its commitment to settling debts with customers and contractors and making immediate payments once agreements are reached. They also expressed their dedication to resuming the project to minimize risks.

After a prolonged hiatus, the project is now in a state of disrepair and desolation. Photo by Diệu Thuỳ

A representative of a customer group at the project shared their frustration, stating that after eight years of investment, they have not received their apartments, and the promised 12% annual income has been discontinued since 2019. They expressed their intention to take legal action and request the court to declare Thành Đô JSC bankrupt if a reasonable solution is not presented.

The project site is enclosed by temporary fencing. Photo by Diệu Thuỳ

The Cocobay project, spanning 31 hectares along Trường Sa Street in Danang, boasts a total investment of VND 11,000 billion. It broke ground in 2016, offering a minimum guaranteed profit of 12% per year for eight years to customers who purchased condotels (condo-hotels). The project commenced operations in 2017 but encountered significant challenges in 2019 when the investor announced the discontinuation of the promised profit payments.

In the same year, the Chairman of the Danang People’s Committee approved adjustments to the detailed planning of the first subdivision at Cocobay, including the conversion of 50% of condotels into apartments.

By Diệu Thuỳ