Kenton Node Project (Photo: Enterprise Forum)
Vietnam Joint Stock Commercial Bank for Investment and Development (BIDV) recently announced the auction sale of debts owed by Tai Nguyen Construction Production Trading Company Limited (Tai Nguyen Company).
As of July 26, 2024, the outstanding debt of Tai Nguyen Company at BIDV was over VND 5,720 billion. This includes a principal amount of VND 2,506 billion and interest of VND 3,214 billion. The debt was incurred through credit contracts from 2005 to 2020.
The collateral for the debt includes: Land use rights and assets attached to land to be formed in the future of Phuoc Nguyen Hung Residential Area Project (now Kenton Project), Phuoc Kien Commune, Nha Be District, Ho Chi Minh City; and Mining rights of stone mines in Hoa Thach and Phu Man communes, Quoc Oai district, Hanoi city.
BIDV has filed a lawsuit against Tai Nguyen Construction Production Trading JSC at the People’s Court of District 1, Ho Chi Minh City. The People’s Court of District 1 has issued a notice of acceptance of the case dated March 21, 2022, regarding a “Dispute over credit contract”. BIDV has paid the court fees and charges in the amount of VND 2.4 billion on March 21, 2022.
However, on April 23, 2024, the People’s Court of District 1 issued a Decision to temporarily suspend the resolution of the civil case, thereby temporarily suspending the resolution of the “Dispute over credit contract” between the Plaintiff Vietnam Joint Stock Commercial Bank for Investment and Development and the Defendant Tai Nguyen Construction Production Trading Company Limited.
BIDV set the starting price for Tai Nguyen Company’s debt at over VND 4,904 billion.
In addition to BIDV, Tai Nguyen Company also has non-performing loans at Vietnam Maritime Commercial Joint Stock Bank (MSB) with an outstanding principal amount of over VND 296 billion.
It is known that Tai Nguyen Company was established on March 29, 1996 with an initial charter capital of VND 2 billion. The company operates in the field of infrastructure construction, production and trading of construction materials, mainly concrete, construction stones and gravel.
In 2001, Tai Nguyen Company restructured its production and business model and focused its resources on investing and trading in real estate. The company mainly focused on investing in and building apartment and office complexes.
In September 2018, Tai Nguyen Company significantly increased its charter capital from VND 350 billion to VND 1,450 billion.
The legal representative and chairman of the members’ council is Mr. Vu Anh Tam. In addition to Tai Nguyen Company, Mr. Vu Anh Tam also owns Ha Tay Construction and Building Materials Joint Stock Company.
Regarding the Kenton Node Project – the collateral of Tai Nguyen Company, the project’s full name is Kenton Node Hotel Complex, with a scale of 10.8 hectares, featuring a 44-storey tower, including various utilities such as a 5-star hotel, commercial center, office building, and resort apartments…
The Kenton Node Project was previously known as Kenton Residence, once dubbed the “tropical paradise” in South Saigon, located on Nguyen Huu Tho Street, Nha Be District, Ho Chi Minh City.
The project has an investment capital of USD 300 million and was started in 2010 with a scale of 9 buildings, providing more than 1,600 apartments. In early 2010, the investor opened the first sales phase of the project with 100 apartments, priced from USD 1,500/m2 to USD 2,250/m2.
In mid-2010, the real estate market froze and the project was also halted. In May 2017, after a 7-year hiatus, the project was renamed Kenton Node, with a total investment of over USD 1 billion, including many items such as residential apartments, hotels, service centers, theaters, international schools and clinics… Mr. Vu Anh Tam, the founder of Tai Nguyen Company, said that the company signed a supplement of over VND 1,060 billion from BIDV and MSB for the project’s revival. However, in mid-2018, the project stalled once again.
In 2022, there were rumors that a large real estate corporation would take over the Kenton Node Project from Tai Nguyen Company. The project was renamed Grand Sentosa and was expected to be launched in the market in Q1/2022. However, up to now, there has been no news about this project.
