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The Investor Of The Van Phuc Riverside Project: “Magic Circulation” Pushing The Price Up To 400%

Van Phuc Riverside

After 13 years, although the infrastructure is still unfinished and not qualified for sale, the land in the Van Phuc Riverside Residential area project (Thu Duc District) is still quite active, with prices up to more than 44 000USD.

Rounded purchase contract

Over the past 13 years, the Van Phuc Riverside Residential area project (the investor of Van Phuc Real-Estate Investment Joint Stock Company) has been still untidy. According to the investment reporter, in this project, the grass grows faster than the project, especially the project is in the process of petitioning, protesting harshly from the people in compensation for the land clearance.

The strangeness of the project is that in many documents, many former investors and state-owned enterprises voluntarily “entrust” the total project of nearly 200 hectares and three component projects in Hiep Binh Phuoc urban area to the Van Phuc Company with the form “not transfer,” only “adjust, supplement” from the old investor to the Van Phuc Company. Up to now, the holding company of the Van Phuc Company, Dai Phuc Group, has had a total project of nearly 200 hectares and five component projects in this urban area.

>>>Read more: Apartment for sale in Ho Chi Minh City

Van Phuc Riverside
Van Phuc Riverside urban area after 13 years of implementation is still in the litigation

In addition, the implementation period lasts up to 13 years and the compensation process has not been completed, but the Van Phuc Company has started selling the land plots to the customers. This is contrary to the provisions of the Land Law, the Housing Law and the Law on the Real-Estate Business. In addition, the sale, although being made by the method of house purchase contract formed in the future, in fact, the transaction of the Van Phuc Company with the customer is the sale of the land plots, after buying the customers will self-financing to carry out the construction of the house.

Another strange point of the sale and transfer transactions in this project is that, after signing the land plot purchase contract, the customers will be contracted to the Dai Phuc Real-Estate Trading Floor to transfer to the new customers at the high price.

For example, the contract of “buying and selling houses in the future of the Van Phuc 1 residential area project” with the number 425 / HBMB / VP – HBP, the seller is the Van Phuc Real-Estate Investment Joint Stock Company, by Mr. Pham Van Duong, the General Director confirmed the sale for Mr. Pham Duy (Mr. Duong ’s son ) a land plot of 102 sqm at the price of 286 USD per sqm. Later, this plot was transferred to the Dai Phuc real-estate dealer to transfer to the new customer by Mr. Duy for 1139.6 USD per sqm, which is up to nearly 400%!

Van Phu Riverside
Van Phu Riverside have very well positioned

With the 2 months “hugging the products”, this profit level, even the world’s top real-estate investors never dare to dream. This is just one of the many contracts being run from Mr. Duong through the “door” of Mr. Duy to the other customers.

It should be noted that, according to the Article 55 of the Real-Estate Business Law, the land purchase and sale contracts will be invalidated if the project is not certified “the project eligible for sale” of the Department of Construction (with this project is the Ho Chi Minh City Department of Construction).

>>>See more: Vietnam Real Estate News

With such a starting point of the land, those who bought the plots of land are approved by the first owner of the Exchange were also completely disabled, because the first transaction was not valid.

Attorney Doan Van Thang (Ho Chi Minh City Bar Association) said that, the investors intentionally transferred below market prices, the tax authorities will check and re-enforce the actual transaction price on the market to collect the return of the VAT, the corporate income tax difference, apply a fine of 1 to 3 times the amount of the tax payable, the late payment of tax is 0.03% per day.

“Therefore, the customers need to be alert when dealing to avoid the risk of the illegal transactions. For the organization of ceremonies (in this case is the opening ceremony) for the investors when they are not qualified or improper, they may be subject to the administrative sanctions”, Mr. Thang said.

The Inspectorate work compensation: need but was not enough.

As the newspaper has stated that many households in this project do not accept the compensation of the investor, the complaint has been made to the responsible agencies.

Van Phuc Riverside
Van Phuc riverside

Before the incident, the representatives of the Ho Chi Minh City People’s Committee said that on 6/2/2017, the office of the Ho Chi Minh City People’s Committee issued Document No. 1233 / VP – NCPC, accordingly, the Vice Chairman of the Ho Chi Minh City People’s Committee, Mr. Tran Vinh Tuyen has directed the City Inspectorate to review the land clearance compensation of the investor at Van Phuc Riverside urban area, and report the proposal to the Ho Chi Minh City People’s Committee.

Although, directing the compensation work of the project reflects the aspirations of the people who have the rights in this area, however, Mr. Doan Van Thang said that the inspection compensation is necessary, but not sufficient, because it requires a thorough inspection of the entire project, in particular, to determine the legality of all decisions from the implementation of the project to now.

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The Investor Of The Van Phuc Riverside Project: “Magic Circulation” Pushing The Price Up To 400%
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