The fate of the Vietnamese house project in Germany: What does the Ministry of Finance say?

The Ministry of Finance has just sent a letter to the Office of the Government on the project of handling the Vietnamese house project (Viethaus) in Berlin – Federal Republic of Germany of the Vietnam Airlines Corporation (ACV).

According to the Ministry of Finance, the Viethaus project is an offshore investment project of the Tan Son Nhat Airport Services Joint Stock Company (SASCO) which has been licensed by the Ministry of Planning and Investment to invest abroad.

The total investment capital of the project is over 9.4 million Euros, of which the investors’ capital is more than 2.6 million Euros (SASCO contributes 763,285 Euros, accounting for 29% of chartered capital; Global Telecom contributed € 1,868,732, accounting for 71% of charter capital); the loan is over 6.7 million Euros.

Project Viethaus at Leipziger Street, Mitte district, Berlin city

Pursuant to the provisions of Clause 1.a, 1.d, Article 49 of the Law on Management and Use of State Capital invested in production and business; Clause 2.d, Article 135 and Clause 2.e Article 149 of the Enterprise Law, the Ministry of Finance considers that the consideration and decision to continue or terminate the implementation of the Viethaus project falls within the competence and responsibility of the Congress. Shareholder / Board of Directors of SASCO or as assigned by SASCO.

“However, the Viethaus project is an offshore investment project, so SASCO must comply with the order and procedures governing the law governing investment abroad,” the ministry said.

In addition, the Ministry of Finance also said that since the ACV holds 51% of charter capital at SASCO, the representative of the state capital at ACV must report to the owner’s representative office (Ministry of Trade The ACV Charter, as the basis for the representative of the capital of ACV, to comment, vote and decide at the General Meeting of Shareholders, the meeting of the Board of Directors of SASV, the Ministry of Transport To take responsibility for considering and deciding on the principle of efficiency and preservation of the value of state capital invested in enterprises, avoiding the loss of the State’s capital in accordance with the provisions of law.

Earlier, according to a report by the Government Inspectorate, by the end of 2015, Viethaus’s accumulated losses amounted to € 13.4 million; Economic targets have not been achieved. Therefore, it is difficult for ACV to recover its invested capital and debts of up to EUR 9.6 million (equivalent to VND 62 billion).

“SASCO’s liability for capital investment is ineffective and risk losing money,” the inspector wrote.

Deputy Prime Minister Truong Hoa Binh has instructed the Ministry of Transport to coordinate with the Ministry of Foreign Affairs, the Ministry of Planning and Investment and the Ministry of Finance to review, evaluate the effectiveness of the project, propose solutions and report to the Prime Minister on January 2018.

The Viethaus project is located at Leipziger Street, Mitte district, Berlin city center, with an area of ​​approximately 5,000 square meters. The project is designed to build a center for trade, investment, culture and tourism in Vietnam in Berlin. This is also the first investment project of Vietnam to go abroad in this model.

In the end of 2016, in a bid to restructure the project, ACV agreed to set up a wholly-owned subsidiary in Vietnam by SATSCO, which is wholly owned by SATSCO to cooperate with SASCO. managing and investing in the Viethaus building.

However, after 2 years of taking over, SATSCO also got bogged down in Viethaus with the same difficulties as SASCO has faced when there is no direction to deal with the result that business results can not offset the cost of too high premises. .

“Currently, SATSCO is negotiating to end its cooperation with SASCO for the Viethaus project,” the ACV said.

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