Dai Ninh Urban Commercial, Tourism and Ecological Resort Project (Dai Ninh project) in Duc Trong district, Lam Dong province is invested by Saigon Dai Ninh Tourism Investment Joint Stock Company.

The project's objective is to invest in the construction and business of an ecological resort and tourism commercial urban area. The project has a scale of about 3,595.5 hectares, including villas, public works, parks, etc. with an investment capital of VND 25,243 billion. The project's operation period is 50 years from the date of issuance of the investment certificate. Investment progress is from 2010 to 2018.

In December 2010, Saigon Dai Ninh Company was granted an investment certificate for the project by the Provincial People's Committee.

After being allocated land and forest to implement the project, the investor allowed more than 368 hectares of forest to be destroyed and encroached upon. In 2017, Lam Dong Department of Finance requested the investor to compensate for the value of forest resource damage with an amount of nearly 6.7 billion VND. By mid-2020, the company had only paid nearly 1.7 billion VND.

In the inspection conclusion No. 929/KL/TTCP dated June 12, 2020, the Government Inspectorate requested the People's Committee of Lam Dong province to terminate the operation and revoke the Dai Ninh project.

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Some unfinished items at Dai Ninh Urban Area project. Photo: Hoang Giam

By June 2021, the Government Inspectorate issued inspection conclusion No. 1033/KL-TTCP on amending some contents of inspection conclusion No. 929, including the withdrawal of the request to terminate operations and reclaim land of the Dai Ninh project; at the same time, assigned the Lam Dong Provincial People's Committee to continue adjusting the progress and extending the project.

In early 2022, Lam Dong Provincial People's Committee decided to extend the progress of Dai Ninh project by 24 months. At the same time, it requested the investor to focus resources to implement the project.

By August 2022, Saigon Dai Ninh Company had deposited funds to ensure project implementation and submitted a progress commitment. Lam Dong Provincial People's Committee also issued a document assigning the Department of Natural Resources and Environment to advise on land valuation to calculate land use fees for the project.

According to the report in March 2023, Duc Trong District People's Committee coordinated with relevant units to support the investor in completing the legal procedures of the project. In October 2023, Lam Dong Provincial People's Committee directed relevant departments, branches and units to provide legal documents of Dai Ninh project. The plan for investment and construction work at the project was not mentioned in the progress report.

By the end of January 2024, Saigon Dai Ninh Company had completed a number of procedures and constructed a number of architectural works, leveled traffic roads and spread crushed stone on a number of routes. The total invested capital was VND 2,296 billion, accounting for 9% of the total investment.

In June 2024, Lam Dong Department of Finance assessed that the basis and conditions for implementing the project in the 2020-2025 term were not feasible. Therefore, it is recommended that the Department of Planning and Investment report and propose to the Provincial People's Committee to submit to the Provincial Party Committee Executive Committee and the Provincial Party Standing Committee to consider removing the Dai Ninh project from the list of key projects of the province in the 2020-2025 term.

Tycoon Nguyen Cao Tri takes over the project

Established in 2010, Saigon Dai Ninh Company has a charter capital of 300 billion VND. In 2017, this company increased its charter capital to 2,000 billion VND. Since its establishment, this enterprise has only had one project, Dai Ninh Urban Area.

In 2020, Saigon Dai Ninh signed a contract to transfer charter capital to Ben Thanh Holdings Group Corporation, part of the Capella Group ecosystem of tycoon Nguyen Cao Tri.

After signing the above contract, Mr. Tri used Capella Hospitality Company Limited (another subsidiary of Capella Group) to buy back 51% of Saigon Dai Ninh's charter capital, for VND 1,530 billion. In January 2021, Mr. Tri became the legal representative of Saigon Dai Ninh.

Then, in September 2022, Mr. Tri asked his younger brother Nguyen Cao Duc to buy 7% of the charter capital of Ms. Phan Thi Hoa in Saigon Dai Ninh for 700 billion VND. In total, Mr. Tri owned 58% of the charter capital of Saigon Dai Ninh and paid Ms. Hoa 2,230 billion VND.

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Dai Ninh Urban Area Project is involved in two cases. Photo: Hoang Giam

After that, Mr. Tri agreed to sell 100% of Saigon Dai Ninh's capital to Ms. Truong My Lan, Chairwoman of the Board of Directors of Van Thinh Phat Group, for VND3,000 billion. Ms. Lan deposited more than VND463 billion with Mr. Tri but then changed her mind and did not buy. This amount was converted into payment for another transaction between Ms. Lan and Mr. Tri.

Information about the Dai Ninh project was mentioned in the investigation conclusion of the case that occurred at Van Thinh Phat Group, SCB Bank and related organizations and units.

In 2023, related to this project, C03 of the Ministry of Public Security prosecuted and temporarily detained Mr. Nguyen Cao Tri, Chairman of Capella Group.

In addition, this project also caused a series of officials from Lam Dong province and the Central government to be prosecuted and detained to serve the investigation.

Land use fee for Dai Ninh project from 262 billion to 3.2 billion VND

On July 2, 2024, Lam Dong Provincial Tax Department reported after reviewing the land use fee records of Dai Ninh project.

In April 2014, Lam Dong Provincial People's Committee issued a decision approving the land use rights transfer price for Saigon Dai Ninh Company to pay to the state budget when changing the land use purpose at Dai Ninh project. The land use rights transfer price for the area of ​​166.5 hectares of residential land in this project is 226 billion VND.

In January 2018, the Provincial People's Committee assigned the Department of Finance to urge organizations with budget debts as of October 2017. Of which, there is 158 billion VND in land use fees of Saigon Dai Ninh Company. In case the enterprise is unable to implement, the departments and branches will consider and propose to the Provincial People's Committee to assess the actual basis for project implementation, switch to land lease method, collect annual land rent or revoke the project.

In April 2018, Saigon Dai Ninh Company proposed to change from the form of land allocation with land use fee collection to the form of 50-year land lease with annual payment for the Dai Ninh project.

In the report in May 2018, the Department of Natural Resources and Environment proposed to approve the policy for Saigon Dai Ninh Company to adjust the form of land use. Specifically, 166.5 hectares of residential land in the form of land allocation with land use fee collection, proposed to adjust to non-agricultural production and business land in the form of land lease with annual payment.

In October 2018, Lam Dong Provincial People's Committee issued a decision to adjust the land use form for Saigon Dai Ninh Company; assigned the Tax Department to direct the collection of notices of land use fees payable, the land use fee amount was reduced.

In November 2018, following the direction of the Tax Department, Duc Trong District Tax Department (now Duc Trong - Don Duong Regional Tax Department) issued a document to withdraw land use fee collection notices of Saigon Dai Ninh Company, including 158 billion VND of land use fee and 104 billion VND of late payment fee.

In May 2020, the Duc Trong - Don Duong Regional Tax Department issued a notice to Saigon Dai Ninh Company that the land rent from July 2012 to the end of December 2019 with a land area of ​​166.5 hectares was 3.2 billion VND. After that, Saigon Dai Ninh Company paid this amount to the budget.

According to the Lam Dong Provincial Tax Department, the direction and handling of land use fee reduction at the Dai Ninh Urban Area project by the Provincial People's Committee is based on the inspection conclusion of the Ministry of Finance.

However, through reviewing the records to report to the Central Inspection Committee, the Tax Department found that the adjustment to reduce land use fees and late payment fees according to the direction of the Provincial People's Committee was not in accordance with the provisions of law.

Therefore, the Department recommends that the Provincial People's Committee review related decisions and direct the Land Valuation Council to determine the project's land financial obligations from February 2012 to October 2018.