South Thai Urban Project: A Detailed Overview
The South Thai Urban Project (covering an area of 19.45 hectares) received investment approval under Decision 274/QĐ-UBND dated February 6, 2024, by the Thai Nguyen Provincial People’s Committee.
The project has a preliminary total investment capital of over VND 2,045 billion, including VND 1,700 billion for implementation costs and approximately VND 345 billion for compensation and resettlement support.
The project comprises various housing products and land for social housing development: unfinished terraced houses and mixed-use apartments. Currently, land infrastructure is complete, facilitating the transfer of land use rights through the subdivision and sale of plots for residents to build their own houses as per regulations on land, housing, and real estate business; the resettlement land area measures 8,529m2; and the land for social housing construction spans 1.5ha.
The project’s operation period shall not exceed 50 years from the date the investor receives the land allocation or lease decision from the State. The project implementation schedule extends from the first quarter of 2024 to the fourth quarter of 2028.
The aforementioned project is situated adjacent to FECON’s Quang Truong Urban Area (Square City). Specifically, in early 2023, FECON Pho Yen Joint Stock Company, a subsidiary of FECON Joint Stock Company, officially announced its role as the investor in the South Thai Urban Project (covering an area of 24.68 ha) in Pho Yen City, Thai Nguyen Province, with a total investment of VND 2,250 billion.
According to the electronic bidding opening minutes of the Thai Nguyen Provincial Department of Planning and Investment, at the time of the bidding completion, **Van Xuan Construction and Investment Development Consulting Joint Stock Company** was the sole investor to submit project implementation registration documents for the South Thai Urban Project (covering an area of 19.45 ha).
Van Xuan Company was established on August 15, 2023, with its headquarters in Pho Yen City, Thai Nguyen Province. Its primary registered business activities include real estate consultancy, brokerage, and auction, as well as land use rights auction.
Upon its establishment, Van Xuan had a charter capital of VND 20 billion with three founding shareholders: Tran Manh Tien (contributing 40%), Luu Van Khoa (contributing 30%), and Chu Thi Nguyet (contributing 30%).
In the year of its establishment, 2023, the company did not increase its capital or participate in any project bidding recorded by the National Online Bidding Center’s system.
In 2024, after two capital increases, Van Xuan’s registered charter capital surged 21-fold to VND 420 billion. Specifically, on January 27, 2024, Van Xuan increased its capital from VND 20 billion to VND 350 billion. Subsequently, on March 12, 2024, the company further increased its capital to VND 420 billion.
According to Decision 498/QĐ-UBND, approved by Dang Xuan Truong, Vice Chairman of the Thai Nguyen Provincial People’s Committee, the project’s implementing enterprise must have a minimum equity capital of VND 409.1 billion.
Significantly, Decision 498/QĐ-UBND also stipulates that the project’s implementing investor must have experience in implementing one similar project under three classifications.
Specifically, a Type 1 project refers to a similar project with a minimum total investment of VND 1,227 billion, where the investor contributes a minimum equity capital of VND 245.4 billion, and which has been completed or largely completed within seven years. A Type 2 project denotes a similar project with a minimum total investment of VND 850 billion, where the investor serves as the main construction contractor, and which has been completed or largely completed within five years.
Notably, as per Decision 498/QĐ-UBND, a Type 3 project refers to a similar project with a minimum total investment of VND 850 billion, “in which the partner participates as the main construction contractor,” and which has been completed or largely completed within five years.
