Thu Thiem land auction:2 winners cancel contract, 2 late in land use fee payment

Deputy Director of the Ho Chi Minh City Tax Department Thai Minh Giao informed yesterday that the deadline for the first round of Thu Thiem land use fee payment has expired, yet none of the four winners of the land auction on December 10, 2021 perform its duty.

Accordingly, on January 6, the HCMC Tax Department issued eight notices of the payment for land use and registration fees to four companies winning the Thu Thiem land auction. The notices clearly state a requirement of paying 50 percent of the fees within 90 days of notice receipt.

However, before the 2022 Tet holiday, Viet Star Real Estate Investment Co. Ltd. (under Tan Hoang Minh Group) – winner of land lot No. 3-12, covering an area of 10,059m², with the record price of VND24,500 billion (US$1.08 billion) – sent a letter to cancel the contract and to agree with the deposit loss of over VND588 billion ($25.9 million).

On February 7, Binh Minh Trading Business and Investment Co. Ltd. – winner of land lot No.3-9, covering an area of 5,009m², with the price of VND5,026 billion ($221 million) – also sent a letter to cancel the contract and to agree with the deposit loss of VND145 billion ($6.4 million).

The last two winners – Dream Republic JSC. (winner of 6,446m² land lot No.3-5) and Sheen Mega JSC. (winner of 8,568m² land lot No.3-8) – have not made any announcement yet.

As stated in the regulation, February 7 is the deadline for the first land use fee collection round. If the payment is overdue, these companies have to pay an additional late interest of 0.03 percent a day. After 180 days of notice receipt (January 6), any auction winners failing to pay enough money to buy the auctioned asset are considered violators of the sale contract.

At that time, the HCMC Property Auction Service Center will issue a related notice so that the Land Fund Development Center has a proof to report to the HCMC Department of Natural Resources and Environment, and then to HCMC People’s Committee, followed by a cancelation of the decision to recognize auction winning results.

This means a deposit loss of 20 percent of the land use price to the mentioned violators. The amount was included in the revenue of the city budget in 2021.

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