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Saigon One Tower Is Being Held By Vamc Due To Its 7,000 Billion Dong Debt

Saigon One Tower is being held by VAMC

Sai Gon One Tower has a total investment of about $ 256 million, but now the total debt (principal and interest) of the investor group related to this project to date is over 7,000 billion.

The Asset Management Company (VAMC) said that the company has seized security assets of the Saigon M & C Apartment Complex at 34 Ton Duc Thang Street, District 1, Ho Chi Minh city to handle debt. This is a guarantee of Sai Gon One Tower Joint Stock Company.

Saigon One Tower is being held by VAMC
Saigon-One-Tower

According to VAMC, the seizure of assets is carried out in accordance with Resolution No. 42/2017 / QH14 of the National Assembly on the pilot implementation of bad debts of credit institutions; Directive No. 32 / CT-TTG dated 19.7.2017 of the Prime Minister; Directive No. 06 / CT-NHNN dated 20 July 2017 of the Governor of the State Bank on the implementation of Resolution No. 42.

Previously, VAMC signed a debt purchase agreement with a number of credit institutions for debts of the group of customers including Saigon One Tower Joint Stock Company (formerly Saigon M & C Real Estate Joint Stock Company); Lien Phat Investment JSC; Minh Quan Investment and Construction Joint Stock Company; New Superdeck M & C Joint Stock Company with total outstanding debt (principal and interest) up to now has over 7,000 billion.

Although VAMC has several times urged to work and asked the group of customers to perform debt repayment. However, the customer does not carry out nor has a viable repayment plan.

VAMC has asked Sai Gon One Tower Joint Stock Company to hand over the security assets to fulfill the obligations of the customers including Sai Gon One Tower Joint Stock Company, Lien Investment Joint Stock Company Phat Minh Cement Joint Stock Company, Superdeck M & C Joint Stock Company. Until now, Sai Gon One Tower Joint Stock Company still does not hand over assets.

Therefore, VAMC has seized security assets as investment project Saigon M & C Complex at 34 Ton Duc Thang, District 1, Ho Chi Minh City to handle debt collection. The process of seizure has been in accordance with the order stipulated in Article 7 of Resolution 42 of the National Assembly on the pilot implementation of bad debts of credit institutions.

Started in 2007, Saigon One Tower is expected to be the third tallest building in Ho Chi Minh City (over 195m) after completion in 2009. The project has a total investment of $ 256 million (5,000 billion dongs) and is implemented in the form of EPC general contractor, executed by the contractor Bouygues Batiment International.

Saigon One Tower is being held by VAMC
General about Saigon One Tower

The investor of this project is Sai Gon M & C Real Estate Joint Stock Company. This company was initially founded by M & C Joint Stock Company (49%), Tourism Corporation Sai Gon – Saigontourist (30%), Dong A Commercial Joint Stock Bank (6%), Dong A Bank Securities Company (10%), Phu Nhuan PNJ Jewelry Company (5%).

You can read more information at Vietnam Real Estate Market

This is a well-known and highly expected project in the center of the city, but after two years of construction, Saigon One Tower fell into a deadlock. Up to the end of 2011, approximately 80% of the workload has been completed.

After that, the founding shareholders were DongA Commercial Joint Stock Bank, Dong A Bank Securities Company, and PNJ. M & C Joint Stock Company ceased its operation due to tax arrears … the project was inspected by Ho Chi Minh City People’s Committee.

The “golden” land of the Saigon One Tower project covers an area of 6,672 m2. Here the investor is allowed to build a twin tower of 5 basements and 41 stories, the total floor area of about 127,126 m2 (including about 152,000 m2).

Of these, 6 stories for the retail area of 23,000 m2, a 34-story Grade A office building with an area of 49,000 m2, the remaining 133 apartments.

Earlier in May 1977, there was information that a Singaporean corporation would complete the project. However, up to now, the reality from the site has not yet shown that this work has not actually re-constructed.

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Saigon One Tower Is Being Held By Vamc Due To Its 7,000 Billion Dong Debt
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