On August 21st, Novaland, one of the leading real estate investment groups in Vietnam, disclosed information regarding a dispute over a nearly VND 10,000 billion real estate project in Thu Duc City.
Specifically, its subsidiary, Dia Oc Gia Huy Investment and Development JSC, received a decision from the Ho Chi Minh City People’s Court upholding an arbitral award in favor of the company in a dispute with TKG Taekwang Vina JSC. The court’s decision confirms the validity and enforceability of the arbitral award dated April 26, 2025, in case number 275/23 HCM.
Prior to this, the Vietnam International Arbitration Center (VIAC) had issued an arbitral award in the dispute between the two companies, obliging the South Korean partner to continue performing the contract related to the real estate project in Ho Chi Minh City.
Artist’s impression of the real estate project in Long Thanh My ward, Thu Duc City.
The history of the Long Thanh My Residential Area project in Thu Duc City is complex. Originally, the land was used as a shooting range under the management of Military Zone 7. In December 2003, the Prime Minister issued a decision to revoke the land and transfer it to the management of Ho Chi Minh City for economic and social development purposes.
From 2004 to 2013, the project was assigned to Company 7/5 for development according to the approved plan. Subsequently, in December 2014, the investment rights were transferred to A Sung Company, a wholly-owned subsidiary of TKG Taekwang Vina (South Korea).
In April 2018, Taekwang Vina signed a contract to transfer all of A Sung’s capital to Gia Huy Company, a member of the Novaland Group, effectively transferring full ownership of the project. According to the agreement, Taekwang Vina received partial payment from April to June 2018, with the remaining amount to be settled upon completion of certain conditions, particularly land compensation, clearance, and handover of cleared land. In case of violations, Taekwang Vina would be subject to a penalty of 1% of the transaction value for each month of delay.
Novaland’s representative stated that Taekwang Vina had repeatedly delayed the compensation process and requested extensions and waivers of penalties, which were granted by Gia Huy Company. Notably, in December 2018, Novaland issued bonds worth VND 1,730 billion to prepare funds for the payment to its partner. However, after the extension, Taekwang Vina delayed opening a locked account to receive the money, escalating the dispute.
In 2023, after Novaland rejected Taekwang Vina’s request to increase the transfer price, the latter unilaterally declared the contract terminated, citing Novaland’s financial difficulties. Considering this a breach of contract, Gia Huy Company filed a lawsuit at VIAC, demanding that Taekwang Vina continue performing the contract.
Conversely, Taekwang Vina also filed a lawsuit, arguing that Gia Huy Company had missed the statute of limitations for filing a claim and had violated its payment obligations. As a result, Taekwang Vina claimed the right to unilaterally terminate the contract and keep the hundreds of billions of dong received in 2018.
Nevertheless, VIAC rejected these arguments and upheld the legitimate and legal rights of Gia Huy Company.
The Ever-Elusive Novaland: A Tale of Deferred Debt and Intrigue
Novaland has encountered challenges in arranging funds, leading to a delay in repaying over VND 857.4 billion in principal and interest for two bond lots, NVLH2123009 and NVLH2123013.
“Novaland Could Repatriate 4.358 Trillion VND of Provisions from Lakeview Project, BSC Predicts”
“BSC predicts that the latter half of 2025 will be a supportive phase for NVL, attributed to positive legal progress across projects, significant improvement in financial performance with the reversal of 4,358 billion VND in provisions at Lakeview, and enhanced cash flow from asset sales and installment collections at Aqua City.”
The Great Novaland Staff Shuffle
Mrs. Pham Thi Hong Nhung has been appointed as a Member of the Board of Directors of Novaland for a five-year term, effective August 7, 2025.
“Novaland Fails to Repay Over VND 2,500 Billion in Principal and Interest on Bonds in the First Half of 2025”
As of the end of the first half of 2025, Novaland has been unable to repay over VND 2,523.4 billion in principal and interest on six bond lots, citing difficulties in arranging funds.
Extraordinary General Meeting of Novaland: Approving the Issuance of Over 320 Million Shares to Swap Debt, Priced at VND 15,746 and VND 40,000 per Share
“Following these two issuance options, the total ownership ratio of the major shareholder groups (NovaGroup and Diamond Properties) and Mr. Bui Thanh Nhon’s family is expected to reach 39.59%.”
