South Korean contractor denounced for USD2.1 million debt refusal

VietNamNet Bridge – Thirty nine Vietnamese sub-contractors have accused South Korea-owned Hyupjin Vina Company of refusing the debt of VND44 billion (USD2.1 million), allegedly owed them.

Vietnamese sub-contractors, Hyupjin Vina Company, bankruptcy, debt

The five-star Marriott Hotel in Tu Liem District's My Dinh Commune.

In a petition sent to DTiNews, the Vietnamese companies said they are subcontractors, providing materials, equipment and aid to the electrical engineering system installation, for the luxury Marriott Hotel project in My Dinh Commune in Hanoi.

Dinh Van Khoi, Deputy Director of Construction Machinery Joint Stock Company No.4. (Coma4), one of the sub-contractors, said the Marriott Hotel project is owned by he Binh Minh Import Export Production and Trade Co. (Bitexco) and Bitexco signed a contract with South Korea’s Hyundai Engineering & Construction Company.

After that, Hyundai Engineering & Construction Company signed a contract with subcontractor Hyupjin Vina Company at the representative's office in HCM City.

Then Hyupjin Vina Company signed a deal with 39 Vietnamese subcontractors who will provide materials, equipment and electrical engineering systems for the hotel. Under the contract, the Vietnamese side finished their work according to documents agreed by the two sides.

After their work was completed, Hyupjin Vina should have paid the 39 Vietnamese subcontractors a total VND44 billion. But, Hyupjin Vina suddenly announced their bankruptcy, and their inability to pay the debt.

Hyupjin Vina said that Hyundai Engineering & Construction Company still owes them more than USD3.5 million; therefore, they could not pay the debt to the Vietnamese sub-contractors.

Meanwhile, Hyundai Engineering & Construction Company denied this, saying that Hyupjin Vina has still owes them over USD4.2 million.

The Vietnamese sub-contractors have been seeking help from the two South Korean firms, but the firms refused to do this.

Many workers from the Vietnamese company gathered in front of the Marriott Hotel to strike for their rights. They faced the security people blocking the site and no one else appeared to deal with their problem.

Mr. Khoi said they sent a petition to Vietnamese management agencies, but, the problem has not yet been settled.

"We do not know about debt problems between the two South Korean companies, but Hyundai is the main contractor of the project, thus, they should take responsibility for this. We also expect the involvement of Bitexco in order to protect its project,” Khoi noted.

DTiNews reporter contacted Hyundai Engineering & Construction and the company said it will provide information about the case as soon as possible.

DTiNews will continue updating the information of the case.

Source: DTriNews

Vietnamese sub-contractors, Hyupjin Vina Company, bankruptcy, debt