My Dinh Sports Complex lost the lawsuit and had to compensate the business 12 billion VND.

The lawsuit between the My Dinh National Sports Complex (referred to as the complex, the defendant in the case) and Hai Yen Company (plaintiff) has been closed. This company sued the complex because it believed that the complex had violated the contract signed in 2011. This was the time when Mr. Can Van Nghia was the director of the complex (he retired in 2018).

According to the 10-year contract (from December 2011 to December 2021), Hai Yen Company rented the premises for business purposes. In 2019, the complex unilaterally terminated the contract and reclaimed the premises to serve the construction of a Formula 1 racing track (the race was later canceled in Vietnam).

In the lawsuit, the company stated that the complex did not negotiate, did not communicate directly, and did not notify in writing but cut off electricity and water at the restaurant owned by the company, leading to great damage.

My Dinh National Sports Complex is in tax debt

The company sued the complex for 20 billion VND in compensation because after the power and water were cut off, the restaurant had no customers, leading to a heavy loss of up to 30 billion VND. At the second trial, Hai Yen Company requested the complex to pay an additional 23.5 billion VND in compensation. This is the additional benefit that the company said it would have received if the complex had not cut off the power.

On the contrary, the complex's leaders affirmed that Hai Yen Company violated the contract when leasing the premises to a third party at a price very different from the price the complex offered in the lease contract.

After many sessions of debate, the People's Court of Nam Tu Liem District issued a decision: accepting part of the lawsuit request of Hai Yen Company for compensation for damages in the contract, forcing the defendant, My Dinh National Sports Complex, to be responsible for compensating the plaintiff, Hai Yen Company, with the amount of 11.9 billion VND.

Of which, 100 million VND for damaged goods when the complex cut off electricity and fenced off the entrance gate from October 25, 2017 to January 15, 2018. 1 billion VND for 2 months of business premises rent (from December 2, 2017 to February 15, 2018), 10.8 billion VND for breach of contract.

The court also decided to partially suspend the plaintiff's lawsuit, not accept the defendant's counterclaim because it lacked sufficient grounds, and reserved the defendant's right to sue in another case upon request. In addition, the defendant (the complex) must pay 119.9 million VND in first-instance commercial business court fees.

The My Dinh National Sports Complex owes about VND1,000 billion in taxes. However, according to Minister of Culture, Sports and Tourism Nguyen Van Hung, this is a debt that is difficult to recover.

At the session explaining the implementation of policies and laws on construction, management and use of cultural and sports facilities in the 2013-2023 period organized by the National Assembly's Committee on Culture and Education, Minister of Culture, Sports and Tourism Nguyen Van Hung affirmed: "Enterprises rent land there but the land does not have a red book. Some have constructions, but some are left empty and unused. All are taxed, and if left like that, by now there will be 1,000 billion in tax debt." Therefore, tax enforcement for the My Dinh National Sports Complex is "very difficult".

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