How did Nhat Nam Real Estate operate before CEO Vu Thi Thuy was arrested?

The Economic Police Department of Hanoi City Police has just detained Ms. Vu Thi Thuy (40 years old, from Thanh Hoa province), General Director of Nhat Nam Real Estate Investment and Trading Joint Stock Company (Nhat Nam Real Estate) for providing false information about Nhat Nam Company having many real estates, investment projects, and high profits to mobilize capital from many individuals, then using part of this money to pay interest to the above individuals. From there, Ms. Thuy appropriated an especially large amount of money.

CEO of Nhat Nam Real Estate Company, Ms. Vu Thi Thuy, was detained by the police. (Photo: Government Newspaper)

Big assets, "huge" ecosystem?

Nhat Nam Real Estate Company (formerly Nhat Nam Real Estate Investment, Trading and Service Company Limited) was established in 2019, headquartered in Ho Chi Minh City.

According to the company's introduction, in addition to the headquarters, the enterprise also has 12 branches nationwide and owns a large land fund located in prime locations in many provinces and cities across the country such as: Hanoi , Thanh Hoa, Buon Me Thuot, Phu Quoc...

Nhat Nam's registered business fields include: afforestation; logging; forestry and aquaculture exploitation; housing construction; nursery education; motor vehicle rental... However, the main business is still real estate business.

At the end of 2022, Song Da Nhat Nam Group Joint Stock Company was established in Hanoi. In 2023, Song Da Invest Joint Stock Company was established and headquartered in Ho Chi Minh City. Both of these enterprises are chaired by Ms. Vu Thi Thuy.

Also in 2022, Ms. Thuy joined the Board of Directors of Song Da 1.01 Joint Stock Company (SJC) as a major shareholder owning 23.53% of capital. At the Extraordinary General Meeting of Shareholders, Ms. Thuy was elected as Chairwoman of the Board of Directors and legal representative of SJC.

In early July 2023, in the information announcement, Ms. Vu Thi Thuy is the wife of Mr. Pham Khanh Phuong (singer Khanh Phuong), a member of the Board of Directors of Song Da 1.01 Joint Stock Company (SJC).

In early August 2023, shareholders related to Ms. Thuy simultaneously registered to divest from SJC. Of which, singer Khanh Phuong registered to sell all 908,576 shares, accounting for 13.1%.

From August 4-25, Nhat Nam sold 240,800 SJC shares, thereby no longer being a shareholder of Song Da 1.01.

On August 27, Song Da 1.01 announced the postponement of the second annual general meeting of shareholders. The reason is that the Board of Directors requested to add more business content. The company is in the process of developing a plan and direction of operations for the Board of Directors to agree on. The specific time for the meeting has not been announced.

According to the 2023 annual shareholders' meeting report, Song Da 1.01 would like to seek opinions on the dismissal of Ms. Vu Thi Thuy from the position of member of the Board of Directors. The reason is that, according to Article 156 of the 2020 Enterprise Law, the Chairman of the Board of Directors of a public company and a joint stock company in which the State holds more than 50% of the charter capital or total voting shares will not be allowed to concurrently hold the position of director or general director.

On the website of Song Da Nhat Nam Group (songdanhatnamgroup.vn) it was introduced: " Song Da Nhat Nam Group is known as a multi-industry business company with a focus on two areas: real estate and finance. In addition, Song Da Nhat Nam also owns a chain of service systems including: restaurants, hotels, spas, karaoke...

Currently, the company owns many real estates stretching from North to South, including: Ho Chi Minh City, Tay Ninh, Phu Quoc, Thanh Hoa, Ha Nam, Hanoi... These land funds are all located in prime locations, helping Song Da Nhat Nam implement many outstanding and more suitable business strategies, thereby achieving many memorable achievements.

The current head and operator of Song Da Nhat Nam Company is Chairwoman Vu Thi Thuy. In addition to a huge asset fund, Ms. Vu Thi Thuy also owns a large-scale multi-sector ecosystem. Holding the strength of financial potential, the female chairwoman is even more confident in the real estate market when playing the role of the leader of Song Da Nhat Nam Group .

"Winged" introductions about Song Da Nhat Nam Group and Vu Thi Thuy. (Screenshot)

Simultaneous warnings about Nhat Nam real estate

Before CEO Vu Thi Thuy was detained, the police, localities and many press agencies had warned about Nhat Nam Real Estate Company many years ago.

From 2019 to 2022, Nhat Nam Company has offered a profit of 34 - 46%/year, even giving away more gold and land if anyone invests money, and dividing profits by day. Therefore, tens of thousands of people across the country rushed to invest and get rich with Nhat Nam.

" If you lose money investing with Nhat Nam, I will compensate you. If you deposit money in Nhat Nam, I promise you will not lose it, " Ms. Vu Thi Thuy affirmed.

However, immediately, "hot" warnings about unusual signs of Nhat Nam Company were issued.

In 2022, the Department of Economic Security - Ministry of Public Security issued a warning: Nhat Nam Company has the behavior of raising capital through "Business Cooperation Contracts" that pose many risks to investors. This is a complex risk of economic security and social security that will sooner or later break out. The most obvious manifestation is that after signing the contract and depositing money, investors will receive daily profits into their accounts. However, Nhat Nam Company does not use the company account but uses personal accounts such as Vu Thi Thuy (Director) to transfer money. This is a "trick" to circumvent the law, evade taxes and partly reveal the "nature" of the risky game.

According to the authorities, the purpose of using the mobilized capital of Nhat Nam Company has many suspicious signs, possibly operating according to the "Ponzi" model (taking money from previous investors to pay later investors). At some point, Nhat Nam Company will no longer be able to pay investors, which will lead to disputes and lawsuits, potentially posing complex risks to economic security and public order.

Many localities such as the People's Committee of Hoa Binh province, the People's Committee of Viet Tri city (Phu Tho province), the Police of Bao Yen district (Lao Cai province)... also issued warnings about the investment calling activities of Nhat Nam Real Estate Company.

Document of Hoa Binh Provincial People's Committee requesting to review the operating status of Nhat Nam Company. (Photo: Cong Thuong Newspaper)

Thousands of people "fall into the trap" of unimaginable interest rates

Recently, social networks have been "stirred up" by information related to Nhat Nam Real Estate Company. Specifically, according to the reflection of many investors, because of believing in the high-interest business cooperation contracts of 46%/year, even up to 70% or 80%/year, with daily interest payments of Nhat Nam Company, many people have had to "swallow the bitter fruit" and accumulate debts.

According to experts, in the context of the economic difficulties in the past 3 years, this interest rate is "unimaginable", just a trick of Nhat Nam to attract investors' money.

In addition to high interest rates, Nhat Nam Company also offers many other tricks to gain investors' trust. For example, for every 4 billion investment, there will be a number of strategic shareholders, investors will receive an additional 15 million VND/month.

Or in addition to giving away shareholder books, Nhat Nam Company also gives away internal shares to investors. The 100 million VND package gives away 125 shares. The 5 billion VND package gives away 10,000 shares. With the price of 1 share set by Nhat Nam at 16,000 VND and a commitment that the company will buy it back 10 months later at 20,000 VND, or even 27,000 VND/share. However, according to investors: " They promised but they didn't buy ."

Nhat Nam Company also spared no expense in developing a brokerage system based on a pyramid model, similar to a multi-level marketing scheme. Every 5 brokers who develop 10 brokers and invite sales of over 10 billion VND will receive a 7% commission.

On social networks, there is also a widespread clip of Ms. Vu Thi Thuy's dialogue with investors at a dialogue session.

During the dialogue, the investors requested Nhat Nam Company to close the business cooperation contract, pay interest and principal for the contracts. They were very upset because they affirmed that they did not believe in the promise of "solving and paying investors" as many times Nhat Nam leaders had promised. In response to these legitimate questions and demands, Ms. Thuy had an "extremely harsh" attitude and lacked receptiveness towards investors.

Among the tens of thousands of investors, many are elderly, even in difficult circumstances. Because of the illusion of Nhat Nam's "huge" interest rates, they invested their capital, hoping to receive daily interest to maintain their lives. However, Nhat Nam Company only paid interest for half a month and then stopped completely, putting them at risk of losing all their assets.

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