On December 4th, the Kon Tum Province’s Department of Planning and Investment announced the termination of FLC Group’s commercial, entertainment, and residential 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 outlined in Document No. 1952, dated July 31st, 2019, and Document No. 4165, dated November 5th, 2020.
The termination was initiated by FLC Group’s decision to discontinue the project, as per Point a, Clause 1, Article 48 of the Investment Law.
As per the announcement, FLC Group is responsible for completing the project liquidation procedures and fulfilling its investor obligations as stipulated by the law. The province of Kon Tum has revoked Documents No. 1952 and No. 4165, rendering them invalid from the effective date of this announcement.
Strategically located in the heart of Kon Tum City, the project was launched in 2019 along Truong Chinh Street, boasting a total investment of over VND 1,700 billion and spanning an area of approximately 18 hectares. The goal was to develop a high-quality, integrated complex encompassing commercial, service, entertainment, and residential components. However, after 3 years, only a handful of villas remain unfinished, surrounded by overgrown grass.
In 2022, the Government Inspectorate identified numerous violations and issues with the project. According to the inspection, the province had erroneously allowed the FLC Group to auction off nearly 18 hectares of land, contravening land laws.
At the time of the inspection, the FLC Group had failed to fulfill its financial obligations. Moreover, 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 is inconsistent with the Land Law.
