What did Tan Hoang Minh say about "withdrawing" from the 24,500 billion VND land lot in Thu Thiem?

Land lot 3.12 in functional area number 3, Thu Thiem new urban area with an area of ​​10,060m2 won the bid of 24,500 billion (each m2 is about 2.45 billion VND) - Photo: TTD

Late on the evening of January 11, Tan Hoang Minh Group issued a press release stating that it will send an official document to the Ho Chi Minh City People's Committee to report and send it to the Land Fund Development Center and the Ho Chi Minh City Property Auction Service Center to request unilateral termination of the property auction sale contract for lot 3-12, functional area number 3, in the Thu Thiem new urban area (Thu Duc City, Ho Chi Minh City). At the same time, it accepts to accept all sanctions for unilaterally terminating this contract according to the provisions of the law on public property auctions.

"After the successful auction, the group's leadership listened to and recorded analytical opinions from state management agencies and public opinion, including opinions that winning the auction at such a high level could lead to bad consequences...", the press release said.

According to the press release: "On December 10, 2021, Ngoi Sao Viet Real Estate Investment Company Limited (Ngoi Sao Viet Company) - a member of Tan Hoang Minh Group won the auction of a land plot with an area of ​​10,060m2 in Thu Thiem with a price of 24,500 billion VND (2.45 billion VND/m2). The second bidder, a foreign company, bid 23,800 billion VND at 700 billion VND. This is an unexpectedly high price for Tan Hoang Minh Group when participating in the auction.

However, during the auction, many investors offered as high as VND 20,000 billion and then gave up, leaving only one foreign investor and Ngoi Sao Viet Company. With the desire to contribute to Ho Chi Minh City having more motivation to overcome difficulties after the pandemic, Ngoi Sao Viet Company was determined to pay 3% higher (VND 700 billion) to win the auction of this land lot to increase revenue for Ho Chi Minh City's budget and build a beautiful landmark project.

Previously, in a 3-page letter, the Chairman of Tan Hoang Minh Group "requested to withdraw" from the land lot worth 24,500 billion VND that Ngoi Sao Viet Company (under Tan Hoang Minh Group) won the auction in Thu Thiem.

Mr. Do Anh Dung, Chairman of the Board of Directors of Tan Hoang Minh Group, admitted his mistake to the leaders of the Party and the State, saying that on December 10, 2021, Ngoi Sao Viet Company (under Tan Hoang Minh Group) participated in and won the auction of land lot 3-12, functional area number 3 in Thu Thiem new urban area, with an area of ​​10,060m2 with a price of 24,500 billion VND (calculated that each m2 of land is worth 2.45 billion VND).

Mr. Dung said that this was an unexpectedly high price that even he himself did not think of before participating in the auction.

"After winning such a high bid, we thought and listened to many different social opinions and found that such an auction result could lead to bad consequences," the letter reads.

Mr. Dung said in the letter: "Especially after receiving the opinion of the Minister of Finance at the first extraordinary session of the National Assembly, we seriously reviewed and realized that winning the auction and the above results will disrupt the real estate business sector in particular and the economy in general."

"We hereby voluntarily and unilaterally terminate the contract for the auction sale of land lot 3-12, functional area number 3 in the new urban area of ​​Thu Thiem (Thu Duc City, Ho Chi Minh City). We accept to accept all sanctions for unilaterally terminating this contract according to the provisions of the law on public property auctions," the letter reads.

Previously, on January 4, at the group discussion session on the fiscal and monetary policy package to support the socio-economic recovery and development program submitted by the Government to the National Assembly at the first extraordinary session, it was stated that the land auction in Thu Thiem was up to 2.45 billion VND/m2.2is unusual, Finance Minister Ho Duc Phoc said he is checking related businesses on the stock market.

Prevent abuse of auctions to disrupt the market

As reported, on December 21, 2021, the Prime Minister issued an official dispatch directing the People's Committees of provinces and cities to review the organization of land use rights auctions. Timely detect and strictly handle violations in land auctions, prevent the exploitation of auctions to disrupt the market and profiteering.

The Prime Minister assigned the Ministry of Natural Resources and Environment to preside over and coordinate with the Ministries of Justice, Finance, Construction, and People's Committees of provinces and cities to urgently review and inspect land auction activities in cases showing signs of abnormality.

According to Tuoi Tre