The commercial, service, entertainment complex, and townhouse project, funded by FLC Group JSC (formerly chaired by Trinh Van Quyet, now serving a sentence for fraud), was once anticipated to be the most modern commercial and service hub in Kon Tum Province and the Central Highlands. However, the project remains incomplete, with construction abandoned and the site now used as grazing land for goats.
Great expectations, bitter disappointment
The project was initially approved for investment by the People’s Committee of Kon Tum Province in July 2019. Spanning more than 179,677 square meters on Truong Chinh Street (Truong Chinh Ward, Kon Tum City), it had an investment capital of over VND1.7 trillion. The project was introduced as "a synchronized, high-quality commercial complex harmoniously integrated with the architectural landscape, designed to optimize land use and drive socio-economic development in Kon Tum."
In 2019, during its launch, the investor made bold claims about transforming the project into the most advanced commercial, service, and residential hub in Kon Tum and the Central Highlands. The plan included shophouses, shop villas, a residential complex, a 5-star hotel, and a range of high-end amenities, comprising a bustling commercial and entertainment center, an eco-park, a plaza, a multi-level school, sports facilities, and recreational zones. It was envisioned to offer a fully modern living space, a dynamic shopping and entertainment destination, and a significant boost to Kon Tum’s urban infrastructure and services.
The project generated excitement initially but was "shelved" after just a few days and has remained dormant for years. Today, it stands abandoned and dilapidated. A small group of guards strictly controls access, but inside, much of the unfinished infrastructure has deteriorated, with rusted structures and overgrown weeds dominating the landscape. Nearby residents have reported that, after construction was halted, the land was left idle, and locals began using it for goat grazing.
Protecting customer interest
As of November 2024, only 55 of the planned 472 townhouses and villas had been completed. Key facilities that remain unfinished include the mixed-use commercial and service complex, kindergarten and elementary school buildings, a community center, recreational areas, sports facilities, a plaza, and a green park.
After years of suspension, FLC Group JSC recently informed the Kon Tum Department of Planning and Investment of its decision to officially terminate the project as of November 14. The company stated that by the time operations ceased, it had paid approximately VND318 billion to contractors and contributed over VND233 billion in taxes, fees, and land rental payments.
FLC Group JSC cited various difficulties during the project’s implementation as the reason for its termination. Both internal and external factors prevented the investor from achieving the construction and investment goals. To protect the interests of customers and partners and avoid further disruptions, the investor decided to voluntarily terminate the project, allowing for the management of assets and the fulfillment of civil obligations to banks. On December 3, the Kon Tum Department of Planning and Investment officially announced the project's termination.
The Kon Tum Provincial People’s Committee reported that, along with directing the Department of Planning and Investment to complete the termination procedures, relevant agencies were tasked with addressing unresolved issues. The provincial Department of Construction was instructed to ensure the rights of households that had purchased homes within the project. Additionally, the Tax Department and the Department of Natural Resources and Environment were directed to work with FLC Group JSC to review tax obligations, land-use finances, and land utilization to provide recommendations to competent authorities to resolve the matter in accordance with legal regulations.
Government Inspectorate identifies numerous violations
In its 2022 report, the Government Inspectorate found several infractions in the implementation of FLC Group JSC's commercial, service, entertainment complex, and townhouse project. Notably, the Kon Tum Provincial People’s Committee violated Decree 151/2017/ND-CP and the Law on Management and Use of Public Assets by assigning the provincial Land Fund Development Center to sell land assets and transfer land use rights through auctions.
Furthermore, while the project remained incomplete, the provincial Land Registry Office improperly issued certificates of land use rights, ownership of houses, and other assets attached to the land. It arbitrarily divided over 71,600 square meters of land into 474 plots and issued separate long-term usage certificates for each. These actions were in violation of the Land Law.
