Tycoon Eyes Acquisition of Phuc Son Group, Offering $300 Million to Replace Hau ‘Cannon’

On January 7th, the Military Court of Military Zone 5 continued questioning parties with related interests and victims regarding the civil aspect of the case involving Phuc Son Group’s illegal acquisition of 63 hectares of defense land along Nha Trang’s coastal road.

For this act, CEO Nguyen Van Hau, his sister Nguyen Thi Hang, and close friend Tran Huu Dinh were all charged with Fraudulent Appropriation of Property.

Hau was accused of knowingly directing his company’s staff to promote and present the project as legally compliant, despite being aware that the land had not yet received provincial approval for detailed 1/500 scale planning or construction permits.

On May 10, 2018, Hau’s company was administratively fined by Khanh Hoa Provincial People’s Committee for engaging in real estate business without meeting the required conditions. After paying the fine, Phuc Son continued to promote the project, asserting its legal compliance and urging customers to make payments as scheduled.

Subsequently, the company signed 983 land use rights transfer contracts with 683 individuals, defrauding over 7,000 billion VND, which was recorded as the total damage.

Defendant Nguyen Van Hau in court. Photo: Danh Lam

To mitigate the situation, during the legal proceedings, Hau was noted to have sold 501 taels of gold for 60 billion VND, which was deposited into the enforcement agency’s account.

1,422 land titles registered under various organizations and individuals, along with a Mercedes S600 registered under Phuc Son Company, are currently being held to ensure enforcement of the judgment.

In his statement yesterday, CEO Hau admitted to all actions and now seeks to focus on mitigating the consequences, hoping the court will facilitate a partner who has decided to acquire the company’s shares.

Business Tycoon Offers to Acquire Phuc Son, Pledges Full Compensation

In today’s court session, the Judges’ Council announced that they had summoned this tycoon, Nguyen Duy Kien, as a party with related interests. Mr. Kien’s representative answered the court’s questions regarding the transaction.

The representative stated that Mr. Kien, defendant Hau, and Phuc Son’s shareholders have agreed that Phuc Son will transfer its shares to Mr. Kien. Mr. Kien has committed to fulfilling the civil obligations and compensating all victims who purchased land in the Nha Trang project, in accordance with the effective judgment. The company has submitted this commitment to the court for consideration.

The representative added that Mr. Kien has also worked with the Military Bank (MB) to issue a guarantee letter to the court.

“Is this share transfer contract legally valid?” the presiding judge asked. The representative replied that during the negotiation and contract drafting process, they studied the legal provisions, sought opinions from legal authorities, and were advised that the shares could be transferred.

Mr. Kien and related parties have completed the necessary procedures, ensuring the contract’s legal validity.

Subsequently, the representative from Military Bank (MB) stated that they had issued a guarantee letter for Mr. Kien in accordance with the Law on Credit Institutions and related decrees. The letter guarantees a maximum value of 6,973 billion VND.

When asked about MB’s assessment process for issuing the guarantee letter, the representative confirmed that it complied with the law and MB’s internal procedures.

“Has MB anticipated any risks associated with issuing this guarantee letter?” the presiding judge continued. The representative reaffirmed that they followed proper procedures and evaluated the customer according to banking practices. Detailed business-related information cannot be disclosed.

The Judges’ Council requested MB and related parties to urgently provide additional documents for the court to consider whether to accept Mr. Kien’s agreement with Phuc Son.

The court summoned 656 victims, with approximately 60 in attendance. Photo: Danh Lam

Land Buyers Assert “No Deception”

For the trial, the Judges’ Council summoned 656 individuals who paid Phuc Son for land in the Nha Trang project as victims, but only about 60 were present. In court, the Judges’ Council announced the list of victims, along with their land plot numbers and payment amounts.

During questioning, the victims were divided into two groups: those who acknowledged themselves as victims and suffered significant losses from the fraud, and those who denied being victims, asserting they were not deceived.

The first group stated they learned about Phuc Son’s project through extensive advertising campaigns, which claimed the project was reputable and fully compliant. Many were elderly, stating they borrowed money or saved their entire lives to buy land, hoping to settle in Nha Trang—a clean seaside area—in their later years. These individuals affirmed their profound and severe losses, seeking the court’s protection of their rights.

In contrast, a male victim asserted he paid Phuc Son voluntarily, without coercion or deception. He signed a 3 billion VND contract with the company and paid 70%, over 2 billion VND, knowing the project lacked transfer eligibility.

“I signed the transfer contract to support Phuc Son’s responsibilities, hoping that once the project resumes, I will benefit,” he explained.

This individual also requested the Judges’ Council reconsider the charges against those accused of Fraudulent Appropriation of Property (Mr. Hau, Ms. Hang, and Mr. Dinh). He saw no evidence of deception by Phuc Son or anyone else.

“I ask the court to uphold the contract’s validity since I paid Phuc Son, the project and company are real, and still operating. If Phuc Son continues the project, my rights remain tied to the company,” he stated.

Regarding tycoon Nguyen Duy Kien’s offer to acquire Phuc Son’s shares and provide compensation, some victims urged the court to carefully consider and protect their rights. They purchased land for genuine use and still wish to receive the land, not refunds. These victims requested direct negotiations with Mr. Kien on compensation terms.

The Judges’ Council stated they are still assessing the agreement’s legality and have not made a decision.

The trial continues.

 Mr. Nguyen Duy Kien – Chairman of Kita Group

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