Review the regulations and consider to continue implementing the project at no 76 Ton That Thuyet street

On the afternoon of January 31st, Vice Chairman of Ho Chi Minh City People's Committee Tran Vinh Tuyen had a meeting with departments related to the project of Commercial – Service center and Apartment (under trading name Charmington Iris (located at No 76 Ton That Thuyet street, Ward 16, District 4, Ho Chi Minh city) to review the investment policy in this project in order to allow the project to restart when ensuring enough conditions.

The project is being implemented building the foundation

Based on official correspondence No. 4404 / SQHKT dated September 27th, 2016 of the Ho Chi Minh City Department of Planning and Architechture on the approval of master plan - architectural plan of commercial, services and apartments center at no 76 Ton That Thuyet Street, Ward 6, District 4 with a total area of 16,645.3 m2, of which including 6,657.47m2 for construction, accounting for 40%, 9,987.83m2 of green park , traffic and other public utilities accounting for 60%; and 35 upper floors, with the land use coefficient is 8.5 times.

On September 1st, 2017, Ho Chi Minh City People's Committee issued Decision No. 4689 / QD-UBND approving the land price proposal according to the market price for the entire above mentioned area on the basis of the report from the Department of Natural Resources and Environment as well as Appraisal opinions of the City Council of land price on March 23rd, 2017 at VND 23,095,734 / m2. If it is compared to the construction density of 40%, when converting the land price of 16,645.3 - m2 project at 23,095,734 VND / m2, the unit price of 01 m2 of construction land will be up to 57.7 million VND / m2 (rounded).

At the meeting, Mr. Tran Vinh Tuyen- Vice Chairman assigned People's Committee of District 4 to coordinate with other departments to consider the legality of 14 households living in the project to support and compensate to ensure legal rights for households. Along with considering the legality of the households, the City People's Committee also assigned the Department of Natural Resources and Environment to consider and adjust the project boundary so that the households are no longer affected.

The representative of the Department of Planning and Architechture said that it is necessary to adjust the planning rate of 1 / 2,000 of this area to ensure the related criteria to the project, the Department of Construction requires investors to report capital mobilization, transactions with customers at the project, etc.

Vice Chairman Tran Vinh Tuyen said that after reviewing, ensuring the necessary regulations, the City will consider allowing the project to restart not stopping the project in order to ensure the benefit for customers, enterprises. Putting the project into operation will also contribute in urban renovation for District 4.

It is known that the area at no 76 Ton That Thuyet street was originally handed over by the Prime Minister to Khanh Hoi Glass Factory under Decision 607 / TTg in October 1994. However, then Saigon Beer-Alcohol-Beverage Joint Stock Corporation (Sabeco) formed a joint venture with Malaysian partners to establish Malaya Vietnam Co., Ltd. (MVG) to launch a factory producing glass products for their production. In which Sabeco contributes 30% of charter capital, this amount is for rental in the first 12 years in this joint venture. Only from the 13th year onwards that joint venture has to pay rental fee to the Government.

But according to the decision to reorganize Government-owned houses and land issued in 2007, this area has not been subject to Sabeco's management anymore. Therefore, Sabeco no longer takes advantages from this land. However, in 2009, Sabeco and Hiep Phuc Tourism Service Trading Investment Co., Ltd (Hiep Phuc Company) together with MVG signed an investment cooperation contract to exploit the land.

In March 2015, representative of Government capital management department in Sabeco had a report proposing the Ministry of Industry and Trade to allow cooperation with Hiep Phuc Company by contributing 26% of charter capital, through the establishment of a legal new firm to deploy the project on the area.

In January 2016, the Deputy Minister of Industry and Trade approved the establishment of a joint venture as proposed by the Government capital management department in Sabeco. On January 15th, 2016, the cooperation contract between Sabeco and Hiep Phuc Company was signed.

In February 2016, two shareholders including Hiep Phuc and Sabeco established Sabeco HP Investment Limited (Sabeco HP). In which, Hiep Phuc Company accounted for 74% of charter capital, Sabeco accounted for 26% of charter capital. On November 18th, 2016, Ho Chi Minh City People's Committee issued a decision to withdraw more than 34,000 m2 land previously owned by MVG.

After that, the city approved for Sabeco HP to use more than 16,000 m2 from the total above mentioned of withdrawal area to invest in the project of commercial center and apartment Charmington Iris. The project is introduced with the scale of 2 blocks of 35 floor each, including 1,438 apartments by TTC Land Company and Viet Real Estate Trading Joint Stock Company (Vietcomreal) as the project developers.

According to the City People's Committee, Sabeco has reported incorrectly the assets used in the area while according to of District 4 People's Committee it is vacant land. In fact, there are still 14 households residing and it needs to clarify. Thereby, the City People's Committee has requested to review the origin and legal basis of the accommodation arrangement for 14 individuals still residing at no 76 Ton That Thuyet Street.

Source: Do Tra Giang/ Sai Gon Giai Phong Newspaper