Phuc Son Group’s 5 Projects in Khanh Hoa Province under Investigation

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Phuc Son Group's project in Nha Trang airport

The People’s Committee of Khanh Hoa Province in Vietnam recently issued an urgent document requesting relevant departments to provide information and documents on the projects of Phuc Son Group and its subsidiaries. This request was made based on the recommendation of the Crime Investigation Department for economic crimes, corruption, and smuggling.

Investigation of Phuc Son Group’s Projects

The People’s Committee of Khanh Hoa Province has assigned the Department of Planning and Investment to take the lead, in coordination with the Department of Natural Resources and Environment, the Department of Construction, the Department of Finance, the Department of Transportation, and the project management boards for infrastructure projects in the province to inspect and review the detailed investment capital (including central capital, local capital, and investor’s capital), as well as related financial investment decisions and documents for 5 projects.

These 5 projects are as follows:

  1. Flood drainage system from Phu Vinh Bridge to the head of Tac River in Nha Trang.
  2. Nha Trang – Da Lat Road project, Phase 1.
  3. Nha Trang – Da Lat Road project, Phase 2.
  4. Phong Chau Road project.
  5. Cam Ranh International Airport project.

Phuc Son Group, a conglomerate with 11 subsidiary companies, has been involved in various infrastructure projects in Khanh Hoa Province. Since October 2016, the provincial People’s Committee has reclaimed 62.3 hectares of land to allocate to Phuc Son Group for the implementation of the urban center project – financial and tourism services in Nha Trang (part of the area of the former Nha Trang airport), including zones 2A, 2, and 3.

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In 2017, Khanh Hoa Province authorized project management boards to sign Build-Transfer (BT) contracts for 3 transportation projects with Phuc Son Group. These projects include the Ngoc Hoi intersection, the connecting ring road of Ngoc Hoi intersection, and the road network connecting to Nha Trang airport. The total investment for these 3 projects is 3.562 trillion VND, and the investor will receive more than 20 hectares of land as compensation within the former Nha Trang airport project area. All 3 BT projects were not subjected to bidding and were directly assigned to Phuc Son Group.

In addition to these projects, Phuc Son Group is also responsible for the Phuc Khanh 1 urban area project in Vinh Trung commune, Nha Trang city, and the Phuc Khanh 2 urban area project in Dien An commune, Dien Khanh district. The Phuc Khanh 1 project covers an area of nearly 14 hectares, while the Phuc Khanh 2 project covers over 49 hectares. Both projects were approved for planning in 2014, but until now, the process of land clearance and compensation has not been completed for either project.

Business Today is closely following this investigation to provide updates on the Phuc Son Group’s projects in Khanh Hoa Province. For more information, visit Business Today.