The Vietnam International Arbitration Center (VIAC) recently issued a ruling to reject all requests from Taekwang Vina and approve the request of Gia Huy Real Estate Investment and Development Company Limited (Gia Huy Company) - a subsidiary of Novaland, forcing the Korean partner to continue implementing the signed contract related to the real estate project in Long Thanh My ward, Thu Duc city, with a total investment of nearly 10,000 billion VND.
The 7/5 Residential Area Project is located in Long Thanh My Ward, Thu Duc City, formerly a shooting range managed by Military Region 7.
In December 2003, the Prime Minister issued a decision to recover the land and assign the People's Committee of Ho Chi Minh City to manage and use for socio -economic development.
From 2004 to 2013, the project was assigned to the Company 7/5 to build residential areas as planned.In December 2014, A Sung Co., Ltd.
(100% owned by TKG TKGWang Vina - Korea) to become a project investor.In April 2018, Taekwang Vina signed a contract to transfer 100% of A Sung Company to Gia Huy Company - a member company of Novaland Group, transferred the full right to own the project.Taekwang Vina received a part of the transfer value from April to June 2018.
The remainder will be paid after Taekwang Vina completes the implementation of the transaction conditions, including important conditions related to compensation for site clearance and handover of clean land as committed. If the deadline is violated, Taekwang Vina will be fined 1% of the transaction value for each month of late implementation.
In 2023, after the proposal to increase the transfer price was not accepted by Novaland, Taekwang Vina cited Novaland's financial situation as difficult to unilaterally announce the termination of the sale contract.
Immediately afterwards, Gia Huy Company filed a lawsuit at VIAC, requesting that Taekwang Vina continue to perform the contract.
On the contrary, Taekwang Vina also filed a counter-suit, demanding recognition of the termination of its contract as legal and requesting to receive hundreds of billions of VND that Gia Huy Company has paid since 2018.
However, the VIAC Judgment rejected all counter-suit requests from Taekwang Vina and recognized Gia Huy Company's request, affirming that the contract was still valid and that the Korean partner had to continue to fulfill its contractual obligations in accordance with Vietnamese law.
Accordingly, Taekwang Vina must continue to transfer the contributed capital at A Sung Company Limited - the investor of the 7/5 Residential Area Project located in Long Thanh My Ward, Thu Duc City to Gia Huy Company.
