Overturning the First-Instance Verdict in the Billion-Dollar Land Subsidence Case in Lam Dong

The Appellate Court of the Supreme People’s Court in Ho Chi Minh City has issued a final judgment, overturning the entire first-instance verdict in the case of the talus slope subsidence at Nhan Co Industrial Park (Dak Nong Province, formerly).

The project, with a total investment of VND 1.658 trillion, commenced in 2015 and began experiencing subsidence in 2018. By October 2020, the project had suffered five subsidence incidents, resulting in damages exceeding VND 55.6 billion.

According to the appellate court, the involved parties failed to address the issue decisively after the initial incident, leading to recurring subsidence events.

The judges determined that the violations were systemic and prolonged, involving collusion among the investor, contractor, supervision consultant, and state management agencies. However, the first-instance court’s decision to hold only the design consultant accountable was deemed incomplete, potentially overlooking other culpable parties.

Project Awarded Under Special Mechanism

According to the project file, the construction of technical infrastructure inside and outside the Nhan Co Industrial Park fence was approved by the Prime Minister under Decision 882/QĐ-TTg dated May 30, 2014, with special preferential mechanisms.

The Dak Nong Provincial People’s Committee assigned the Management Board for the Development of New Urban Areas of Dak Nong Province (Project Management Board) as the investor, responsible for completing the documentation and implementation plan.

Subsequently, the Director of the Project Management Board, Mr. Pham Dinh Tuan, agreed with the General Director of Duong Viet Construction Investment Joint Stock Company, Mr. Pham Van Cuu, for Duong Viet Company to conduct surveys and design the project at their own expense, bearing the risk if not awarded the contract.

Duong Viet Company then mobilized multiple departments to conduct surveys, prepare legal documents, and coordinate with the Project Management Board. On June 24, 2014, Mr. Tuan established a project implementation support team, appointing Deputy Director Ho Si Diep as the technical lead. On July 3, 2014, the official project implementation decision was signed.

Appellate Court: First-Instance Court Misjudged Causes

According to the first-instance judgment, the subsidence was attributed to the lack of an underground water drainage solution, destabilizing the foundation soil. The first-instance court determined that defendants Pham Van Cuu and Nguyen Thanh Ha (design consultants) failed to propose an underground water survey, violating technical standards TCVN 4054:2005 and TCVN 9362:2012.

However, the Appellate Court ruled this conclusion inconsistent with the case file and legal provisions. Specifically, standard TCVN 9362:2012 (Foundation Design) was not among the approved standards for the Nhan Co Industrial Park project, as per Decision 1420/QĐ-UBND dated September 21, 2015, by the Dak Nong Provincial People’s Committee. Therefore, holding the defendants accountable for not applying this standard was deemed unfounded.

Based on additional evidence, the Appellate Court of the Supreme People’s Court in Ho Chi Minh City accepted the appeals of defendants Pham Van Cuu and Nguyen Thanh Ha (initially sentenced to 8 and 7 years, respectively, for “Violating Construction Regulations Causing Serious Consequences”) and the civil plaintiff, Duong Viet Construction Investment Joint Stock Company.

The court annulled the entire first-instance judgment dated November 15, 2024, by the Dak Nong Provincial People’s Court (now Lam Dong Province) and returned the case file to the Provincial People’s Procuracy for further investigation.