The mysterious disappearance of the real estate giants

VietNamNet Bridge – Unable to arrange capital to implement real estate projects, losing money in risky investment deals, a lot of big guys in the real estate sector have gone missing to escape the public punishment.



real estate giants, estate market, housing projects



In late July 2013, the General Director of Minh Viet Investment JSC -- Edward Chi, was reported as “missing.” Hundreds of people, who bought the apartments at Tricon Tower, developed by Minh Viet, have been on tenterhooks. They are at the risk of losing hundreds of billions of dong.

A buyer said he and other clients came to the company’s head office to get back the money they paid before as the deposit for the apartments as per the appointment with the general director.

However, the head office was deserted with only one female worker. Local people said the office has stopped the operation for the last month, while the furniture has been emptied.

Under the contracts signed between Minh Viet and the customers, Minh Viet has to deliver apartments to buyers on December 31, 2011, and no sooner than June 30, 2012. However, the promise has been broken by Minh Viet. To date, only the foundation of the apartment bloc and two floors have been completed.

In June 2013, the clients, who bought apartments at the Linh Nam and Hesco Van Quan also got harassed as they could not contact Nguyen Hoang Long, President of Vina Megastar, the developer of the projects, though they tried to ring his mobile phone and the company’s head office many times.

Several days later, the HCM City Police informed that Long was arrested on May 17 to serve the investigation on the man’s cheating to appropriate SeABank’s assets, worth VND29.5 billion.

In early 2013, Nam Thi Real Estate Company Ltd, the developer of Labonita project, also quietly left the head office to escape the clients. The company promised to pay money back to clients because it could not deliver apartments on schedule. However, the investor later decided to escape the money payment by leaving the head office.

In September 2012, General Director of the Hong Ha Building Material and Import-Export Company, the developer of the project on the ancient streets’ population relocation reportedly ran away with VND200 billion.

On September 26, 2012, the Hanoi Police informed the general director that Tran Ung Thanh was arrested in HCM City.

In August 2012, the real estate market vibrated on the news that the developer of the Hanoi Time Tower project disappeared. Due to the slow implementation of the projects, the clients who registered to buy the apartments, decided to claim their money back. However, the developer tried to stay in the background to evade the responsibility.

Thousands of buyers have suffered as the project developers cannot fulfill the projects as promised due to the lack of capital, even though the buyers have paid parts of money in advance.

Hung, 39, said he registered to buy an apartment four years ago, but he still cannot live in the house he dreams of. The developer now doesn’t have money to continue the projects. Meanwhile, buyers don’t want to pay more money, because they fear the developer would use the money to pay debts instead of continuing the project.

Deputy Minister of Construction Nguyen Tran Nam said the ministry is considering forcing project developers to take insurance policies to ensure the benefits of buyers.

Bao Han

real estate giants, estate market, housing projects
 
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