On June 2, Binh Tay Steel Mesh announced that it had received a document from the Ho Chi Minh City People’s Committee regarding the retrieval of two land plots located at 165/5 Nguyen Van Luong Street, Ward 10, and 792 Pham Van Chi Street, Ward 7, District 6.
According to the announcement by the Ho Chi Minh City People’s Committee, the city authorities have entrusted the People’s Committee of District 6 to enforce the retrieval of the aforementioned land plots as per regulations. Concurrently, the People’s Committee of District 6 is to provide a response to VDT and other concerned organizations and individuals, stating that there are no legal grounds for considering compensation for assets on the land and investment costs incurred. Furthermore, they are to inspect and verify any administrative violations committed by VDT.
Should the case exceed their jurisdiction, the People’s Committee of District 6 is to forward the case documents to the competent authority for handling in accordance with regulations. The Department of Agriculture and Environment is tasked with advising the Ho Chi Minh City People’s Committee on the handling of land use rights certificates and land lease contracts granted to VDT.
Location of the two land plots to be retrieved from VDT in District 6, Ho Chi Minh City.
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Previously, on May 11, 2018, the Ho Chi Minh City People’s Committee decided to retrieve the two land plots leased to VDT according to Decision 900/QD-UBND dated March 2, 2006. The retrieval was based on the fact that the land, leased by the state for a limited period, was not eligible for an extension. The city authorities entrusted the Land Development Center to take charge of the retrieved land plots for subsequent auction sales.
Subsequently, on May 17, 2018, Binh Tay Steel Mesh submitted a request to retain the two land plots to continue implementing the investment cooperation project. However, on June 11, 2018, the Land Development Center issued a document demanding that the company hand over the land plots before June 23, 2018.
In its responses in June 2018, VDT requested an assessment of the assets on the land for compensation and relocation support. According to VDT, the Nguyen Van Luong land plot included a one-story office building with a construction area of 128 square meters and a workshop area of nearly 3,000 square meters. These assets had been liquidated since the end of 2009, with a fully depreciated book value of nearly VND 1.5 billion, to prepare the site for handover as per the cooperation investment contract for the Song Hong – Binh Tay Apartment Building project. As for the Pham Van Chi land plot, it featured a 120-square-meter office building and a 1,060-square-meter workshop, which was leased out.
Regarding the Song Hong – Binh Tay Apartment Building project, in September 2009, VDT, in collaboration with Song Hong Corporation (UPCoM: SHG) and Song Hong Mechanical Construction Investment Joint Stock Company, established Song Hong – Binh Tay Joint Stock Company to construct the apartment building on the Nguyen Van Luong land plot. As part of this collaboration, VDT committed to contributing 25% of the capital (equivalent to VND 10 billion) in the form of land and assets on the land.
The partners had advanced VDT VND 5 billion for asset transfer and site clearance support. However, by the end of 2019, the project could not be implemented due to the land retrieval. In June 2019, the partners sent a letter requesting VDT to refund the VND 5 billion, which VDT refused on the grounds that the land retrieval was due to subjective delays in project implementation and not due to objective reasons as stipulated in the contract.
Returning to the case, from June to September 2018, the Land Development Center repeatedly asserted in its correspondence that the assets on the land did not meet the conditions for compensation and that they would only support demolition if VDT submitted a specific plan before September 18, 2018. VDT failed to provide the requested plan and maintained the status quo.
On November 1, 2019, VDT submitted another petition requesting reconsideration of the land retrieval decision and seeking permission to continue the investment project at Nguyen Van Luong. The company stated that it complied with the city’s decision but could not hand over the land due to the absence of a suitable support plan. Subsequently, up until now, the Ho Chi Minh City People’s Committee issued a document entrusting the People’s Committee of District 6 with the retrieval of the two land plots as mentioned earlier.
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– 13:15 06/04/2025
