Real Estate Crash

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Real Estate Bailout Implemented In Phases

Posted byNguyen Ayi

By Joe Fotalattee

The Ministry of Construction said it would stop proposing a credit package of 110,000 billion VND for social housing to focus on implementing the 120,000 billion VND package agreed upon by four state-owned commercial banks.

Regarding the package of VND 120,000 billion, Mr. Dao Minh Tu, Deputy Governor of the State Bank said that the agency is directing four commercial banks to implement general roadmaps and regulations. This is a commercial loan package, so businesses and home buyers who meet the conditions will be able to borrow.

Officials of the State Bank still believe that the VND 110 trillion credit plan proposed by the Ministry of Construction is necessary for the real estate market, but the source of funding for the credit plan is a problem. 

Tu explained the difference between the mobilization rate and commercial bank loans to VnExpress. Interest hovered around 3% when the package loan rate was considered unattractive. Using this credit package, the banks had to reduce 1.5-2% of the said difference, so they would have very little reserves left. If other commercial banks participate in the future, the amount of this credit program will reach 120 trillion VND. 

Officials of the State Bank still believe that the VND 110 trillion credit plan proposed by the Ministry of Construction is necessary for the real estate market, but the source of funding for the credit plan is causing problems.

New BriefsNewsReal Estate Crash
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News Briefs: Silacon, Dead Cats, Dead Mule, And Da Lat Coffee Fest

Posted byNguyen Ayi

By Joe Fotalattee

Silacon
The Saigon Silicon City project, which was based in Silicon Valley, was first put into motion in 2016. Since the project in Ho Chi Minh City has been on hold for years, the city will revoke the investment certificate.

Vo Van Hoan, a vice-chairman of Ho Chi Minh City, asked relevant departments and agencies to work with the hi-tech park to speed up the process of terminating the project and revoking the investment certificate and land.

A representative from SHTP stated that the park will work in conjunction with the municipal Department of Planning and Investment as well as the Department of Justice to complete the necessary steps to revoke the project investment certificate.


Death Sentence For Mule
A Laotian man was given a death sentence by a court in Vietnam’s central Ha Tinh Province for bringing 7,000 amphetamine pills and one kilogram of ketamine into the country. It determined that Yer Vang, 28, had transported drugs illegally. “.

On August 16, 2022, while Yer was completing the necessary formalities to enter Vietnam at the Cau Treo International Border Gate in Huong Son District, Ha Tinh border guards and customs officers checked the vehicle he was operating.

Dalat Coffee Festival

The Buon Ma Thuot Coffee Festival will take place from March 10 to 14. Customers on the street will be offered local coffee along a street of stands.

At the upcoming coffee festival, Tran Duc Nhat, deputy chairman of Buon Ma Thuot, announced that “about 300 cafés in the city will serve free coffee to locals and tourists.”.

Dead Cats

Four tonnes of frozen dead cats and 480 live cats were discovered during a police raid on a household business on Thursday in Dong Thap Province, southern Vietnam.

A 63-year-old representative of the Nguyen Huy Quyen-owned … Read more

CrimeNewsReal Estate Crash
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Deliberations Begin In Alibaba Real Estate Fraud Case

Posted byNguyen Ayi

By Joe Fotalattee

Nguyen Thai Luyen and 22 other defendants went on trial on December 19 in the fraud case of misappropriating property and money laundering by Alibaba Real Estate Joint Stock Company.

After the testimony of Nguyen Thai Luyen and 22 defendants, the Alibaba case trial entered a deliberations phase, according to reports from Tuoi Tre‘s Vietnamese Newspaper.

Prosecutors affirmed that the State is responsible for managing land and only the State has the authority to separate plots of land or change the purpose of use. However, many businesses have exploited the land investment policy in the past to mislead customers, sell them unqualified land, and divide plots for themselves.

Nguyen Thai Luyen consequently founded Alibaba Real Estate Joint Stock Company and 22 other legal entities in the name of family members and employees to commit fraud and appropriate property. The accused’s names appear on newly purchased agricultural land use rights, and those individuals re-authorize 22 legal entities to register as real estate businesses to draw projects themselves, color them, and divide plots in violation of the law. The defendants used a majority of the money appropriated from customers to buy agricultural land and transfer it to family members or trusted staff. Even though the Ho Chi Minh City People’s Court had finished questioning the victims and had stopped accepting new documents, victims still showed up early on December 19 to file documents.

Chairman Tran Minh Chau announced at the start of the trial that numerous defendants had submitted requests for the court to lighten their sentences. In which the defendant Nguyen Van Kien’s wife submitted evidence to lower the penalty liability and asked to convert the funds the family used to purchase Alibaba’s project into funds for corrective action.

NewsOpinionReal Estate Crash
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Alibaba Fraud Not Unique

Posted byNguyen Ayi


By Joe Fotalattee

Alibaba Fraud Not Unique

Over 4,000 people lost money and accrued debt by investing in projects run by Ho Chi Minh City-based real estate developer Alibaba. These pie-in-the-sky development opportunities turned out to exist only on paper.

At the hearing on Monday, 300 victims attended and some testified to the false promises made and illegal land deals. It was one of several sessions that the Ho Chi Minh City People’s Court will hold until January to hear from the more than 4,000 victims of Alibaba, according to a report by VNExpress.

Nguyen Thai Luyen founded the HCMC-based business in 2016 and also formed 22 subsidiaries to invest in 58 projects in the provinces of Dong Nai, Ba Ria-Vung Tau, and Binh Thuan. The projects were all falsely advertised to customers and illegally laid out on agricultural land.

Investigators were able to get in touch with 4,065 of the customers who had invested VND2.1 trillion after Luyen instructed his staff to illegally collect nearly VND2.4 trillion from 4,560 clients.

Why This Case Is Important To The Beat Community:

As foreigners are not legally allowed to purchase land, many of those cases go unreported to authorities. Common tactics by fraudsters include selling a single plot to multiple investors and delaying red books or returns by using false promises of new roads, bridges, and infrastructure to lure more money out of unscrupulous investors.

Other tactics include agents returning the original investment after years of collecting interest or turning profits on a separate legitimate transaction. The agent will claim government problems with the investor’s particular land deal, and the buyer is often satisfied with recouping a fraction of the original amount.

Foreigners are also hesitant to report cases closer to home, involving friends or family members’ land they will inevitably … Read more