Foreign investors preparing for inspections
Five foreign-invested real estate enterprises have been preparing dossiers and evidence to prove their financial activities are quite healthy, since a recent announcement by the Ministry of Finance revealed that they would be inspected within this July.
Talking with VIR last week in Ho Chi Minh City, a source of Keppel Land Watco II, one of the five companies on the list, stated that the company understands that the inspection by Vietnam’s Ministry of Finance (MoF) is part of the MoF’s periodic review of joint-venture entities in which Vietnamese state capital is invested.
“To our knowledge, Keppel Land Watco II complies with all applicable laws and regulations,” said the source. “We will work closely with the relevant authorities on this routine inspection.”
The other companies under inspection include Somerset Grand Hanoi, G.V.C Development Ltd., Indochine Park Tower, and Global Toserco Co., Ltd. All of these are large real estate developers in Hanoi and Ho Chi Minh City.
A public relations representative of Ascott Ltd., the developer of Somerset Grand Hanoi, confirmed that the company had completed all necessary measures to meet the requests from the inspection team. “The inspection into our company has just been completed and the final results show that we have obeyed all government regulations,” the representative for Ascott Ltd. told VIR. “No problems or violations were found in our company during this inspection.”
Two weeks prior, the MoF sent a document to the Ministry of Planning and Investment detailing the inspection into financial mechanisms and policy implementation in these five foreign-invested enterprises (FIEs) in July. The MoF will look into the value of contributed capital for each party, as well as the profits from the state investment capital within these FIEs. The preservation of the state capital in economic organisations, capital and project transfers, and these FIEs’ observation of Vietnam’s tax laws will also be determined.
Keppel Land Watco Co., Ltd. is a joint venture between Singapore’s Keppel Land, Southern Water Transport Corporation, and Saigon Real Estate Corporation (RESCO). This joint venture is the developer of Saigon Centre, a premium project of office space for lease along with a shopping centre tower complex, located in District 1 in Ho Chi Minh City. In 2017, Keppel Land spent VND845.9 billion ($37.3 million) buying an additional 16 per cent stake in Keppel Land Watco (from I to V), the joint-venture entities for Saigon Centre, through its subsidiary Krystal Investments Pte., Ltd. This transaction enabled Keppel Land to raise its stakes in phases 1 and 2 of the Saigon Centre project from 45.3 to 53.5 per cent, and to raise its stake in the two next phases of the project from 68 to 76.2 per cent.
Somerset Grand Hanoi is the property developed by Ascott Ltd., a wholly owned subsidiary of Singapore’s CapitaLand Ltd.
G.V.C Development Ltd. started operating in Vietnam in May 1998 and is an affiliate company of Housing Development Real-Estate JSC.
Indochine Park Tower is a joint venture between RESCO and Hong Kong’s AF Investments Ltd.
Global Toserco was established by Hanoi Toserco JSC, which is the owner of Pullman Hanoi Hotel, and PT Global Metropolitan, a joint venture of Ciputra Group, Metrolitan Group, and Praidha Ltd.
Vietnam Investment Review
- FDI in Vietnam – Where is the Investment Going? (12/08/2019)
- HCM City solicits investment in infrastructure (30/07/2019)
- Vietnam - Japan Business Matching Symposium 2019 (29/07/2019)
- RoK’s rural development group to invest in smart farming in Vietnam (15/07/2019)
- FDI reaches record level in four months (08/07/2019)
- Powering 220 kV Southern Sai Gon - Urban District 8 transmission line (27/06/2019)
- EVFTA Press Release - Official Announcement from the EU (26/06/2019)
- PM calls on Korean investors to expand operations in Vietnam (12/11/2018)
- E-commerce golden pass for logistics (12/11/2018)
- Hoa Phu Industrial Park - The destination of success (12/11/2018)
- Long Thanh airport’s feasibility study approved (12/11/2018)
- Renewable energy projects spur foreign investment surge (02/11/2018)
- New innovation centre to provide grounds for Vietnam 4.0 (02/11/2018)
- National Assembly set to ratify historic trade deal (02/11/2018)
- Overseas financiers outline obstacles (02/11/2018)
- Moody’s upgrades ratings on Vietnamese banks (01/11/2018)
- Foreign investors expand networks in Vietnam (01/11/2018)
- Altus Capital funded to invest in distressed Southeast Asian companies (01/11/2018)
- More FDI to reach southern region (01/11/2018)
- Foreign fashion giants set footprint in Vietnam through M&A (31/10/2018)
- [EuroCham Webinar] Decision 13 – Final FIT for Renewable Energy in Vietnam (23/04/2020)
- THE SITUATION OF ATRACTTING FOREIGN INVESTMENT IN THE FIRST 3 MONTHS OF 2020 (19/04/2020)
- Key infrastructure projects calling for investment in HCMC (08/07/2019)
- Bac Ninh licenses 116 FDI projects in seven months (22/08/2018)
- Binh Phuoc licenses 24 projects worth $1 billion (22/08/2018)
- Hue targets $56mil in investment this year (15/08/2018)
- Hanoi seeks approval for Vingroup’s $300 million IT park (31/07/2018)
- List of Project Calling For Investment in Lam Dong Province in 2018 (31/07/2018)
- Kien Giang calls for investment in 12 resort projects (31/07/2018)
- Decree amendments open paid TV firms to foreign investment (30/07/2018)
- Vietnam: Opportunities in the Waste-to-Energy Sector (24/07/2018)
- Can Tho City seeks investment for 54 projects worth $5.4 billion (20/07/2018)
- Hoa Lac High-tech Park aims for $1 billion investment in 2018 (19/07/2018)
- Large-scale undersea tunnel to be constructed next year (19/07/2018)
- THU THUA INDUSTRIAL ZONE (15/01/2020)
- Map of industrial parks in Vietnam (23/07/2019)
- 493 Projects Invested in Nghi Son Economic Zone and Industrial Zones (09/02/2018)
- Thai Binh Strives to Attract Investment Capital of VND 5000 billion in Industrial Parks and Economic Zones (07/02/2018)
- Vinh Phuc Adds 4 New FDI Projects in Industrial Zones (07/02/2018)
- Dung Quat EZ and Quang Ngai IPs Attracted 258 Projects with a Total Investment Capital of More Than US$ 11 Billion (30/01/2018)
- Solutions to attract Investment Capital into Industrial Parks in Bac Giang Province (19/01/2018)
- Nghi Son Economic Zone and Industrial Zones Received 66 new Investment Projects (08/01/2018)