Jul 11, 2012

Vietnam - Chinese business quietly bought hundreds of hectares of land in Binh Thuan

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VietNamNet Bridge – The Binh Thuan provincial authorities have discovered the illegal investment by a Chinese business which bought hundreds of hectares of land to grow dragon fruits.

In late 2011, Zhong Heng Shan, Chinese national, President and Director of Chinese Nguyen Long Son Company, signed a contract on buying 100 hectares of agricultural land in Ham Chinh commune of Ham Thuan Bac district, and 10,000 square meters of land in Ham Duc Commune from a Vietnamese person – Pham Phu Thanh.

Though the land transfer deal has not been wrapped up because of the dispute, Zhong sent a document to the Binh Thuan provincial authorities, asking for the permission to import machines and equipment to be used for the projects on growing dragon fruits on the land plots.

The dispute…

In the document to the provincial authorities, Zhong said in late 2011, after signing the contract with Thanh, who was the director and now is the capital contributor to Nguyen Long Son Company, Zhong paid 13.5 billion dong to Thanh already. However, Thanh still has not given him the land use right certificate, investment license and the construction license as stipulated in the contract.

Therefore, the company asked the Binh Thuan provincial authorities to make intervention in the case and allow it to grow dragon fruits on the 100 hectare land plot in Ham Chinh, and to build factories on the land plot in Ham Duc.

Meanwhile, Thanh argued that by July 2012, he had received only 10.5 billion dong from Zhong and had handed over all the documents relating to the land.

On February 27, Zhong asked Thanh to sign a contract on borrowing 4.5 billion dong, or 5 percent of the company’s total capital contribution, at the interest rate of zero percent. In return, Thanh had to give 11 red books (land use right certificates) showing the ownership of 75,000 square meters of land, and the documents relating to the company’s office in Ham Thuan Bac.

… has exposed the illegal investment

With the contract, Thanh, after obtaining the investment license, will have to transfer the stakes in order to take back the red books.

In fact, Thanh only makes capital contribution to the company on…. Paper only, while the company’s real owner is the Chinese investor. This means that Thanh helped Zhong make investment in Vietnam without the permission of the local authorities.

The record documents showed that on December 30, 2011, Pham Phu Thanh established Nguyen Long Son Company with the chartered capital of 90 billion dong. Thanh was then the director of the company who contributed 20 percent of the company’s capital (18 billion dong), while Vu Duy Tam from Bac Giang contributed 72 billion dong.

Two months later, on February 28, the company registered the changes of the company. Two new Chinese members of the company appeared, including Huang Bi Qiu who contributed 30 percent of capital (27 billion dong) and Zhong Heng Shan 60 percent (54 billion dong).

Zhong then became the director of the company, while Thanh’s and Tam’s contributed capital dropped to 5 percent. Therefore, the company has been put under the control of the Chinese investors.

After that Thanh signed a contract on transferring the 100 hectares of agricultural land to Zhong.

After using some tricks to legalize the investment of the two Chinese people, Thanh has handed over the company’s stamp to Zhong. However, the provincial people’s committee then refused to grant the investment license, because the company then turned into a foreign invested enterprise.

Source: Tien phong


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