The Shocking $42 Million Profit from Flipping Prime Real Estate in Ho Chi Minh City: Startling Revelations Unveiled

On September 18, the Ho Chi Minh City People’s Court continued the trial of a case involving violations of regulations on the management and use of state assets, leading to losses and waste at four prime land plots owned by the Southern Food Corporation (Vinafood II).

According to the indictment by the Ho Chi Minh City People’s Procuracy, former Director General Huynh The Nang and former Deputy Director General Nguyen Tho Tri conspired with Dinh Truong Chinh (former Chairman of the Board of Directors of Housing Development and Trading Joint Stock Company) to illegally transfer the land plots at 33 Nguyen Du and 34, 36, 42 Chu Manh Trinh (Sai Gon Ward, Ho Chi Minh City), causing a loss of nearly 970 billion VND.

Prosecutors allege that Chinh used sophisticated schemes to profit illegally from these land plots. After purchasing them for 730 billion VND, he resold them at double the price just over a month later.

Specifically, Viet Han Company (owned by Chinh, which held the four land plots) transferred 99% of its capital to Hoang Thi Cam Hong (Chinh’s cousin, a Canadian citizen) for 792 billion VND. Days later, Hong sold the plots to Winter Real Estate Joint Stock Company for 1,683 billion VND. The payment documents were falsified, as Hong had already left for Canada. After Winter Real Estate Company made the payment, the entire amount was returned to Chinh’s and Viet Han Company’s accounts. Through this scheme, Chinh profited 970 billion VND, legitimizing the transfer of state assets without an auction.

Prosecutors identified this as a disguised, calculated, and sophisticated divestment scheme.

During questioning by the judges, Chinh claimed he “proposed a purchase transfer, not a divestment plan.” He stated that he initially received a cooperation invitation from Vinafood II, unaware it was a state-owned enterprise. Chinh intended only to purchase the four properties, without considering a capital contribution plan. When Vinafood II proposed this plan, both parties established Viet Han Sai Gon Joint Venture, with Chinh contributing 80% in cash and Vinafood II contributing 20% in land-use rights certificates. The transfer contract was signed after government approval for 730 billion VND. Chinh also mentioned consulting a valuation certificate before agreeing to the plan.

Chinh stated that Vinafood II set the cooperation criteria, and multiple entities proposed participation as strategic partners. Regarding financial capacity, Viet Han Company had previously executed several projects. However, due to limited specialized departments, Chinh did not thoroughly investigate whether the land plots were state-owned. He also claimed ignorance of the transfer between Hong and Winter Real Estate Company.

Chinh admitted errors in the transaction process but disputed the 970 billion VND profit allegation, requesting the court’s reconsideration. He acknowledged his limited knowledge, admitted wrongdoing, and urged the judges to carefully evaluate his criminal responsibility for the alleged illicit profit.

The trial is expected to continue until September 19.