What did Chairman Tan Hoang Minh write in his “letter” asking to remove Thu Thiem land stakes?

Deposit to… partially ensure market stability business real estate

Right after the “unprecedented” auction with a record of more than 24 billion VND/m2 of land in Thu Thiem (HCMC)public opinion raises many mixed opinions.

Many of them hypothesize that Viet Star Investment Company Limited belongs to Tan Hoang Minh will drop the deposit. There are also opinions that removing the deposit is unlikely because the amount of money the business will lose is quite large.

To deposit to buy this plot of landStar Viet has deposited nearly 600 billion VND and also signed a contract with the Ho Chi Minh City Auction Center and the Ho Chi Minh City Land Fund Development Center.

As of the evening of January 11, confirmation from Tan Hoang Minh Group about withdrawing from the winning land lot shows that the scenario predicted by many people has happened.

In the letter is written dated January 10, 2022 sent to senior leaders of Ho Chi Minh City Central Committee. Mong Do Anh Dung – Chairman of Tan Hoang Minh Group – has requested to voluntarily unilaterally terminate the contract for auctioning assets of land plots of 3-12 official zones. Number 3. This has been stated in the auction regulations and the contract signed by three parties between the Land Fund Development Center enterprise and the Ho Chi Minh City Auction Center.

Mr. Dung affirmed that he would accept receive all sanctions for unilaterally terminating this contract in accordance with the law on public asset auctions.

Revealing the reason for dropping the deposit, Mr. Dung wrote in his “letter”: After winning Auctioning at such a high price, we have thought and listened to a lot of public opinions in many different directions and found that winning the auction at such a high price can lead to bad consequences “Especially after receiving comments of the Minister of Finance at the recent first extraordinary National Assembly session” Mr. Dung stated in the letter.

Boss Tan Hoang Minh also added that this is to “ensure a stable part of the real estate business market, putting the collective interests of society first…”.

At the same time, Chairman Tan Hoang Minh also sent to senior leaders “the most sincere apology”.

Why is the auction at a record high at all costs?

Revealing more about the reason for participating in the auction, Dong Do Anh Dung said he only hopes wanted to “contribute his small contribution to give Ho Chi Minh City more motivation to overcome difficulties after the pandemic”.

Therefore, he was determined to participate in the auction with the hope of “increasing revenue for the budget”. Ho Chi Minh City has just built a beautiful – civilized – modern landmark project and contributed to improving the urban architecture of Thu Thiem.”

After winning the auction Giap said that this group has changed its entire business and financial investment plan to ensure payment according to the schedule stipulated in the signed contract… and at the same time come up with the most suitable new investment business plan to be effective. And “although the calculated profit is quite low, not as expected” but “it still ensures return on investment…”

About why pay the price Unusually high, President Tan Hoang Minh recounted: On December 10, 2021, Viet Star Company was the bidder of 24,500 billion VND for 10,060 m2. This amount was higher than the price set by the second bidder, a foreign company 23,800 billion VND is 700 billion VND.

After that, according to Mr. Dung, there is only one foreign investor left. If he gives up, the plot of land considered the most beautiful on Thu Thiem peninsula will belong to the investor. “In my mind at that time, national pride and honor of domestic real estate investment corporations, of which I was one of them, arose, so I was determined to pay a higher price of 3% (700 billion). VND) to win the right to win” Mr. Dung said.

From then on, at the time of the auction, Mr. Dung paid VND 700 billion more than the second highest bidding company (a foreign company paying 23,800 billion VND) to win. The most beautiful plot of land on Thu Thiem peninsula must belong to a domestic enterprise, Tan Hoang Minh Group.

According to a source with experience in regular real estate auctions, if the original auction winner is If you terminate the land purchase contract, you will lose your deposit. The second highest bidder will be able to buy the land plot at the paid price if there is still a need to buy it. So in this case, it is possible that if Tan Hoang Minh abandons the deposit and loses the deposit, the company with the second highest price will be able to buy the land if there is still demand.