Vietnam News Network

Vietnam News: Local, National, Business, Sport, Entertainment and Technology

Trade XRPUSD, Bitcoin and Cryptocurrencies

BUY & SELL XRPUSD | View XRPUSD News & Updates

Buy Sell XRPUSD, Bitcoin and Cryptocurrencies

Chinese business quietly bought hundreds of hectares of land in Binh Thuan   2012-07-11 - Tien phong

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.

Other news

Quarantine fees press upon farmers   2012-07-11

SSC lets off flare as signal of securities company merger process   2012-07-11

Trade value set to double by 2026   2012-07-11

Vietnam's ACB and Sacombank: outlook stable   2012-07-11

Foreign businesses warm up Vietnamese postal service market   2012-07-11

Foreign businesses warm up Vietnamese postal service market   2012-07-10

Part 2: Steel manufacturers dragging out miserable existence   2012-07-10

Vietnam sells high grade rice at the price for low grade rice   2012-07-10

Experts warn AEC could damage Thai dairy industry   2012-07-09

Stocks decline last week on cautious trades   2012-07-09

Vietnam sells high grade rice at the price for low grade rice   2012-07-09

Banks’ bad debts to real estate sector worse than initially reported   2012-07-09

Hanoi urged to look for suitable models for traditional markets   2012-07-09

Part 1: Lacking orders became an obsession for garment companies   2012-07-09