On December 4th, the Kon Tum Province’s Department of Planning and Investment announced the termination of the FLC Group’s commercial, service, entertainment, and townhouse complex project.
After 3 years of construction, only a few items on the project have been built.
The project was initially approved by the People’s Committee of Kon Tum Province, as stated in Document No. 1952, dated July 31st, 2019, and Document No. 4165, dated November 5th, 2020.
The termination was initiated by the FLC Group’s decision to discontinue the project as per Point a, Clause 1, Article 48 of the Investment Law.
According to the announcement, the FLC Group is responsible for completing the project liquidation procedures and fulfilling its investor obligations as regulated by law. The province of Kon Tum has also recalled Documents No. 1952 and No. 4165, rendering them invalid from the announcement’s effective date.
Strategically located in the heart of Kon Tum City, the project was launched in 2019 with a total investment of over VND 1,700 billion and a land area of approximately 18 hectares. The goal was to develop a high-quality, integrated complex of commercial, service, entertainment, and residential spaces. However, after 3 years, only a handful of villas remain unfinished, surrounded by overgrown grass.
In 2022, the Government Inspectorate identified multiple violations and issues with the project. They concluded that the province’s decision to entrust the Kon Tum Land Development Center with the sale of assets on land and the transfer of land use rights through auctions was incorrect and a violation.
At the time of the inspection, the FLC Group had not fulfilled its financial obligations. Additionally, despite the project’s incomplete status, the Kon Tum Land Registration Office had advised the issuance of land use right certificates and had independently divided the land area, granting long-term land use rights certificates to the FLC Group, which contradicts the Land Law.
