The Current Status of Billion-dollar Projects by Phuc Son Group in Quang Ngai
In recent developments, the Phuc Son Group and its subsidiaries have come under scrutiny in Quang Ngai province, Vietnam. The Criminal Investigation Bureau of the Ministry of Public Security has requested the local government to provide documents related to the projects undertaken by the group. It has been found that Phuc Son Group and its subsidiaries have invested in and constructed four projects in the province, with a total capital of billions of Vietnamese dong.
Projects Overview
The four projects in question are as follows:
- Tra Khuc River South Bank Road (with an investment capital of nearly 1,000 billion VND, started in 2012).
- Bau Giang urban area (3,318 billion VND).
- Dung Quat Industrial Zone (2,000 billion VND).
- Quang Ngai Water Plant (540 billion VND).
Moreover, in 2017, Hoang Thinh Dat Joint Stock Company (a member of the Phuc Son Group) acquired 145 billion VND worth of shares from Quang Ngai Water Supply and Construction Joint Stock Company. Currently, Hoang Thinh Dat holds a 72.55% stake in the company, while Quang Ngai provincial People’s Committee holds 23.36%, and the rest belongs to other shareholders.
Project Progress
Among the four projects in Quang Ngai, the Tra Khuc River South Bank Road has been completed and put into operation, proving to be effective. However, the Dung Quat Industrial Zone project, located in the Dung Quat Economic Zone, Binh Son district, is still an empty piece of land, used by locals for grazing cattle.
It is worth noting that when the Dung Quat Industrial Zone project was initially launched, the provincial government temporarily advanced 130 billion VND to the developer for compensation and land clearance payments. Despite this, only a portion of the project has been implemented, and it has been continuously delayed.
Similarly, the Quang Ngai Water Plant project, covering nearly 14 hectares in Nghia Ky and Nghia Thuan communes, Tu Nghia district, received approval for phase 1 completion and operation by the end of 2019. However, the project is still facing difficulties and has not been fully realized.
Another subsidiary of Phuc Son Group, Thang Long Investment, Trade, and Real Estate Joint Stock Company, was granted investment approval for the Bau Giang urban area project, spanning over 49 hectares in Nghia Trung commune, Tu Nghia district, and Chanh Lo ward, Quang Ngai City. With a total investment of 3,318 billion VND, the project remains an undeveloped and vacant land.
Legal Actions and Investigation
Nguyen Van Hau, also known as “Hau Phao,” Chairman of the Board of Directors of Phuc Son Group, has been arrested and detained by the Investigative Agency on charges of serious violations of accounting regulations. This outcome follows the investigation conducted by the Ministry of Public Security into violations relating to accounting regulations committed by Phuc Son Group, Thang Long Investment, Trade, and Real Estate Joint Stock Company, and other related entities.
Recently, the Criminal Investigation Bureau has requested Quang Ngai province to provide documentation regarding the approval process, investor selection, investment and construction execution, and tax obligations for the projects undertaken by Phuc Son Group and its subsidiaries in Quang Ngai.
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