Restart the project 76 Ton That Thuyet, district 4

At the "Meeting to discuss between leaders of Ho Chi Minh City and real estate enterprises" held over the weekend, the Chairman of HCMC People's Committee Nguyen Thanh Phong said that: projects, which have been inspected or investigated and allowed to "run" already by authorities until now, must be also supported by the departments of industries for investors to complete the procedures. One of those is the housing project at 76 Ton That Thuyet, district 04.

  Restart the project 76 Ton That Thuyet, district 4 

According to the HCMC Real Estate Association, there are 158 projects involving public land and subject to be reviewed due to incorrect legal base of decision. City leaders and central authorities have allowed 124 projects to be resumed normal operation since March 2019. However, in fact many projects have not yet been operated normally.

The legal review of Government agencies on projects are very necessary for investors to be able to reorganize their investment and businesses and fulfill their financial obligations as well as it helps avoid losing revenue of the national budget. The review and inspection process have also affected on production and business activities of investors, homebuyers, secondary investors and the business environment.

Mr. Le Hoang Chau, the Chairman of Ho Chi Minh City Real Estate Association proposed that the City People's Committee coordinate with Central Authorities to soon draw conclusions on projects subject to review and inspection for investors to abide by them. Accordingly, investors will be able fulfill additional financial obligations to the Government (if any) and to continue implementing projects. This also helps reduce difficulties for enterprises and add supply of products to the real estate market to meet housing demand of multi classes.

In his speech at the meeting, the Chairman of Ho Chi Minh City People's Committee – Mr. Nguyen Thanh Phong said: "The Association refers to 19 enterprises having entangled projects pending for long time. Therefore, I would like to propose the Vice Chairman of the People's Committee- Mr. Vo Van Hoan to form a group and the extent until April 30th for this issue to be completed as a must. Every week this group must organize meeting to resolve these projects completely ".

The Chairman of Ho Chi Minh City People's Committee added that: projects, which have been inspected or investigated and allowed to "run" already by authorities until now, must be also supported by the departments and industries for investors to complete the procedures according to the law.

 “For example, the project 76 Ton That Thuyet, District 4 has been received the announcement by the authorities and now must be restarted", the Chairman of the Ho Chi Minh City People's Committee emphasized at a meeting with real estate company in area.

It is known that the land of 76 Ton That Thuyet was originally assigned by the Prime Minister to Khanh Hoi Glass Factory in accordance with Decision 607 / TTg in October 1994. However, after that, Saigon Beer Alcohol and Beverage Joint Stock Corporation (Sabeco) entered into a joint venture with a Malaysian partner to establish Malaya Vietnam Co., Ltd. (MVG) to make a glass packaging factory for export.

In which, Sabeco contributes 30% of charter capital, this money is used to rent the land in the first 12 years as contribution to joint ventures with foreign partners. From the 13th year on, the new joint venture must pay rental fees to the Government.

On the other hand, according to the decision on rearrangement and handling of Government -owned houses and land issued in 2007, this land is not subject to Sabeco's continuous right of management and use. Therefore, Sabeco no longer took the advantages of the land.

However, in 2009, Sabeco and Hiep Phuc Tourism Investment and Trading Service Co., Ltd. (Hiep Phuc Company) together with MVG signed an investment cooperation contract to exploit the land.

In March 2015, a representative of Sabeco's Government capital management department reported a proposal to the Ministry of Industry and Trade to allow cooperation with Hiep Phuc Company by contributing 26% of the charter capital, through the establishment of a new legal entity to implement the project in the land.

In January 2016, the Deputy Minister of Industry and Trade approved the establishment of a joint venture at the request of Sabeco’s Government capital management department.

On January 15th, 2016, a cooperation contract between Sabeco and Hiep Phuc Company was signed.

In February 2016, two shareholders including Hiep Phuc Company and Sabeco established Sabeco HP Investment Co., Ltd. (Sabeco HP), in which Hiep Phuc Company accounted for 74% and Sabeco accounted for 26% of charter capital.

On November 18th, 2016, the Ho Chi Minh City People's Committee issued a decision to acquire more than 34,000m2 of MVG's former land.

After that, the City approved for Sabeco HP to use more than 16,000m2 from the above-mentioned land area to invest in the Charmington Iris apartment-commerce-service center project.

The project was introduced with the scale of 2 blocks, 35 floors, including 1,438 apartments developed by TTC Land Company and Viet Real Estate joint stock Company (Vietcomreal).

                     Source: Do Tra Giang - Sai Gon Giai Phong Newspaper