Vipco has not finished transferring the building on the golden land of Hai Phong
ChandraGarran04 4-09-2020, 15:27

Although there is a plan to transfer the 25-storey Vipco Tower building located in the “golden land” area of Phan Boi Chau street (Hong Bang district, Hai Phong city) from 2019, VIPCO has not yet completed the divestment.

The Royal Auction Company has just released an announcement to auction the Vipco Tower Building (at 37 Phan Boi Chau, Hoang Van Thu ward, Hong Bang district, Hai Phong city) and Central Tower ( 43 Quang Trung, Hoang Van Thu ward, Hong Bang district, Hai Phong city) is owned by Vipco Petroleum Transport Joint Stock Company (Vipco for short).

Accordingly, the auction is scheduled to be held on September 18, total starting price of the two assets is 307.5 billion dong.

Vipco has not finished transferring the building on the golden land of Hai Phong

Vipco Tower was abandoned for many years on the golden land of Hai Phong. (Photo: Youth of the Capital)

According to research, Vipco Tower is located on an area of 1,148.4 m2, the scale of the building is 25 floors high, 5 basements with the function of office, commercial center. Up to now, the project has completed construction of raw materials, ventilation system, fire protection system, automatic parking system in the basement.

The project has an investment of more than 200 billion VND. As expected, the work was started construction in 2009 and completed and put into operation in 2011. However, in 2014, this building has only completed the main structure and was abandoned until now.

Regarding this project, recently, the State Audit has pointed out a series of mistakes. Accordingly, the approval of the project has not enough grounds to determine investment needs; not preparing, evaluating, and approving the cost estimates to manage investment costs; not complying with the Law on Bidding; design approval and construction organization inconsistent with the approved planning; have not yet extended the contract guarantee as prescribed.

In addition, the signing of a land transfer contract has no basis for price, does not guarantee the legality; signing construction contracts, settlement unsuitable with construction methods; contract with unit price in foreign currency not complying with foreign exchange ordinance 2005,

Central Tower building has 17 floors, 1 basement, the land area is 836.7 square meters. The value of the asset appraised by the appraisal organization is 128.5 billion VND (leased land until 31/12/2034). The building has been put into operation in the fourth quarter of 2010, and is currently being used by Vipco as the head office and office for lease.

These two properties will be sold simultaneously, not separately. According to Vipco’s introduction, the Central Tower Building’s design is capable of convenient interconnection with Vipco Tower.

Before that, in early July 2020, Vipco announced the transfer of the two above projects. It is known that at the General Meeting of Shareholders in 2019, Vipco had a resolution on the divestment of 37 Phan Boi Chau and 43 Quang Trung buildings. However, in 2019, the enterprise said that it had not found any organization or individual with real demand for the transfer.

According to the minutes of the General Meeting of Shareholders in 2020, responding to the shareholders about the divestment progress of the two buildings above, Vipco’s Board of Directors said that the transfer has some difficulties such as Central Tower is still operating and has stable tenants. The transfer must consider reviewing office lease contracts to avoid damage to compensation contracts.

In addition, two buildings have the same functions, utility, and connection to the fire protection system, so the divestment of a building will be difficult to exploit.

Source: – Translated by