Fierce competition for "golden land"
On October 15, 2019, Thanh Hoa Provincial People's Committee issued Decision No. 4222 recognizing the winning results of the first auction of land use rights, commercial service area, office of Dong Huong urban area project (Dong Hai ward, Thanh Hoa city) for the participating unit, winning the auction of the above land is the joint venture ADI Investment and Construction Joint Stock Company - Dong Son Thanh Hoa Joint Stock Company (abbreviated as ADI - Dong Son Joint Venture). This is considered a rare "golden land" in the heart of Thanh Hoa city with a large area of up to nearly 6 hectares (divided into 375 lots, including 200 adjacent lots and 175 villa lots), has been cleared, completed technical infrastructure. Therefore, the project has attracted a lot of attention from investors and the public, at the same time, the auction process was tense and many "unusual" situations appeared.
Accordingly, the project of commercial service area, office and residential area in Dong Huong Urban Area (planning plan No. 3241/QD-UBND dated June 7, 2013 of Thanh Hoa City People's Committee) before belonging to the ADI-Dong Son consortium, Thanh Hoa City People's Committee organized two auctions for land use rights. However, both times were unsuccessful, the auction was canceled when the authorities "blew the whistle" for different reasons.
Specifically, on August 30, 2017, the People's Committee of Thanh Hoa province approved the starting price for the first auction of land use rights (LUR) for the Dong Huong Urban Area Commercial Service Area, Office and Residential Area project, with a starting price of more than 434 billion VND for a total area of 5.8 hectares of land, equivalent to an average of nearly 7.5 million VND/m2 of land. Immediately after being approved by the Provincial People's Committee, the People's Committee of Thanh Hoa City assigned the City Land Fund Development Center to organize the signing of a contract with Nam Chau Property Auction Company to auction the above 375 land lots.
On January 22, 2018, the auction was held and Nakama Vietnam Joint Stock Company won the bid with a price of nearly 438 billion VND (only nearly 4 billion VND higher than the floor price). However, the land auction process caused much public outrage about the land price as well as the way the auction was organized, so the People's Committee of Thanh Hoa province directed the relevant agencies to verify the auction organization process, thereby discovering many violations during the implementation process. At the same time, after consulting the Department of Justice and the direction of the People's Committee of Thanh Hoa province, the People's Committee of Thanh Hoa city canceled the asset auction service contract and the results of the above auction.
"Floor plan 3241" has a very nice location in Thanh Hoa City.
Continuing to auction the above land, in July 2018, the site 3241 continued to be restarted and the starting price increased to 9 million VND/m2. However, during the process of selling documents, Hoang Nguyen Joint Stock Auction Company (the new unit hired to conduct the auction instead of Nam Chau Property Auction Company) continuously changed the auction time, and eliminated 15/18 auction documents just a few hours before the auction time. After that, the eliminated individuals and organizations went to the People's Committee of Thanh Hoa City to request a satisfactory answer from the city leaders. Therefore, in order to ensure the rights of all parties, the second auction (October 9, 2018) could not take place as planned and the functional units again stepped in to inspect.
Similar to the first time, the Thanh Hoa Department of Justice continued to discover that the auction unit, Hoang Nguyen Joint Stock Auction Company, violated the Law on Property Auction and requested the Chairman of Thanh Hoa City People's Committee to cancel the auction service contract with Hoang Nguyen Company.
After many procedures, finally, on September 26, 2019, at Thanh Hoa Property Auction Service Center, the auction of land use rights for the above project took place. As a result, the ADI - Dong Son joint venture won the auction with an amount of more than 1,215 billion VND after 30 rounds. Thus, with a starting price of more than 666 billion VND, this auction increased the state budget revenue by more than 548 billion VND.
With fierce competition and unpredictable developments, the auction of the above land is also considered by many investors to be a real estate auction that has consumed a lot of "ink" and is "unprecedented" in Thanh Hoa province so far.
Waste of "golden land"
It was thought that with the fierce competition in the auction, the Dong Huong urban area project, Thanh Hoa City would be carried out quickly and become a highlight of the modern urban area in the East of Thanh Hoa City. However, surprisingly, after being acquired by the ADI - Dong Son consortium, the Dong Huong urban area project suddenly "clinically died" with thousands of billions of investors "stuck", while land resources were wasted.
According to Nguoi Dua Tin 's actual records at the above land, although infrastructure, electricity, and water have been invested in, more than 3 years since the time of winning the auction, the current status of the land is still empty land with overgrown weeds, and there has been almost no construction activity as expected.
With grass growing taller than a person, "Platform 3241" becomes an ideal place for grazing cattle in the middle of Thanh Hoa city.
The land that was supposed to be villas and townhouses in the project has now become a place for grazing cows of some households near the project. At the same time, due to overgrown grass and no one watching over it, this area has also been littered with garbage left behind by some careless residents. In February, a human skeleton (suspected to have died about 3 months ago) was even discovered next to a package of suspected drugs and 200,000 VND, discovered in the project site.
Regarding the delay in project implementation, according to the investigation, after winning the auction, the ADI - Dong Son Joint Venture seemed to have financial difficulties, as it could not fulfill its financial obligations according to regulations related to the project auction results. By the end of 2020, the payment deadline had passed but the ADI - Dong Son Joint Venture had not yet been able to pay the full amount of VND 1,215 billion won in the auction. The Thanh Hoa Provincial People's Committee later issued an "ultimatum" many times, however, for many reasons, the Thanh Hoa Provincial Party Committee did not cancel the auction results of the above project.
In a press conference at this stage, Mr. Hoang Anh Tuan, representative of the ADI - Dong Son Joint Venture, said that due to the complicated developments of the Covid-19 pandemic, the business has encountered many difficulties, so it has not been able to fulfill its financial obligations as committed.
It seemed that the matter had reached a "deadlock", but on May 7, 2021, Maritime Commercial Joint Stock Bank (Maritimebank - MSB) suddenly decided to "rescue" the ADI - Dong Son Joint Venture by signing a credit contract to finance 1,000 billion VND for the joint venture. Immediately afterwards, the joint venture quickly paid the entire auction winning amount of more than 1,215 billion VND to the State budget.
After the groundbreaking ceremony, many machines stopped working and were left "unoccupied" at the project.
After completing its financial obligations, the project continued to "sit still", and after much urging and pressure to withdraw the project related to the slow progress from the authorities, in October 2022, Dong Son Thanh Hoa Joint Stock Company representing the consortium of ADI Investment and Construction Joint Stock Company and Dong Son Thanh Hoa Joint Stock Company organized the groundbreaking ceremony for the construction of commercial townhouses in the central urban area of Dong Huong Urban Area.
However, as mentioned above, after the "just for show" start, the project has continued to be "shelved", with some construction machinery lying around the project site, exposed to the elements. The project's continued slow progress has disappointed many city residents. More importantly, the delay in putting the "golden land" into operation has caused waste, as well as inefficient exploitation of social land resources. At the same time, this has also caused loss of urban beauty, as well as affected the socio-economic development plan of Thanh Hoa city.
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