Six weeks after receiving a 30-year prison sentence for bidding violations in Vinh Phuc, Phu Tho, and Quang Ngai, Nguyen Van Hau, 44, former chairman and general director of Phuc Son Corporation, faces new charges of fraud from the Ministry of National Defense's Criminal Investigation Agency. The charges stem from a case in Khanh Hoa province.

Also facing charges are Nguyen Thi Hang, 48, Hau's sister and Phuc Son's deputy general director, and Tran Huu Dinh, 44, director of Nam A Investment JSC and Hau’s former classmate. Hang and Dinh received sentences of 4 years and 6 months, and 3 years respectively, on 11/7 in a separate trial at the Hanoi People's Court.

Six former Khanh Hoa provincial officials are also facing charges of land management violations. These include two former chairmen of the People's Committee, Nguyen Chien Thang, 70, and Le Duc Vinh, 60; former vice chairman Dao Cong Thien, 63; Vo Tan Thai, 64, former director of the Department of Natural Resources and Environment (now the Department of Agriculture and Environment); Nguyen Duy Cuong, 67, former principal of the Air Force Officer School; and Hoang Viet Quang, 68, former deputy director of the Department of Operations.

Former Phuc Son Corporation Chairman Nguyen Van Hau in court, June 2025. Photo: Danh Lam

Former Phuc Son Corporation Chairman Nguyen Van Hau in court, June 2025. Photo: Danh Lam

The case revolves around the management of Nha Trang Airport, a state asset under the Ministry of National Defense, designated for special combat operations and military management. In 2014, with the government's approval, over 186 hectares of the airport land were repurposed for a new commercial, financial, and urban center. The Ministry of National Defense and Khanh Hoa People's Committee were tasked with leveraging this land to fund military infrastructure, with any remaining proceeds going to the Ministry of National Defense’s budget.

However, Phuc Son Corporation and Khanh Hoa province requested the handover of 63 hectares before any official land reclamation or allocation decisions. This illegal act led to criminal investigations against several provincial officials and two major generals.

Despite this, in early 2016, Hau offered pre-sale contracts for the project at preferential prices to company employees, diplomatic partners, and loyal customers, disguised as investment cooperation contracts with Phuc Son.

Aggressive advertising and unauthorized land subdivision

In May 2016, Hau instructed his staff to adapt other developers’ capital mobilization contracts for the Nha Trang project, despite warnings that this violated real estate laws. From September 2016 to September 2017, Hau approved the sale prices of 1,637 land plots and organized promotional events in Nha Trang, Hanoi, and Vinh Phuc. Initially, Phuc Son handled sales directly, later delegating to the Khanh Hoa Real Estate Brokerage Association, their Nha Trang office, and The Ky Real Estate JSC. Hau also sold plots directly to individuals and distributors, reserving prime locations for later sale.

Phuc Son Corporation's project at the former Nha Trang airport, now halted. Photo: Bui Toan

Phuc Son Corporation's project at the former Nha Trang airport, now halted. Photo: Bui Toan

In mid-2017, Hau told Dinh the project had full legal standing and was approved for capital mobilization, offering him a discounted price. Dinh agreed, profiting 900 million VND. As land prices in Khanh Hoa rose, Hau wanted to sell his reserved plots while keeping some customer payments off the books. He proposed that Dinh handle these sales, with an agreed-upon price including both the official contract price and an additional under-the-table payment. Dinh would receive any profit above this agreed-upon price.

Dinh contacted local real estate brokers, inflating prices by 30-50 million VND per plot, with brokers keeping any further profit. On 10/5/2018, Khanh Hoa People's Committee fined Phuc Son for operating without proper permits. After paying the fine, Phuc Son continued promotion, claiming full legal compliance and urging customers to make payments.

By April 2024, when the case was initiated, investigators found Hau had signed 983 contracts, collecting 7,032 billion VND. Hau instructed his sister, Hang, to keep over 1,000 billion VND off the books, using falsified records. Hang spent this money on gold, savings accounts, and gave the remainder to Hau.

Phuc Son advertised subdivided plots despite lacking land allocation from the province. Photo: Bui Toan

Phuc Son advertised subdivided plots despite lacking land allocation from the province. Photo: Bui Toan

Phuc Son was also selected for three build-transfer (BT) projects in Khanh Hoa, to be paid with land at Nha Trang Airport: the Ngoc Hoi intersection project, the ring road connecting Ngoc Hoi intersection and other routes, and the intersection connecting to the Nha Trang airport area. While Phuc Son initiated these projects, none have been completed or received final payment.

Governmental oversight failures contribute to violations

Investigators attribute the case to inconsistencies in land and real estate laws. Overlapping regulations between the Ministry of Natural Resources and Environment and the Ministry of Finance create confusion regarding land allocation, reclamation, and local transfers. Complex procedures for handling public assets, especially those related to military operations and classified information, further complicate the process, leading to delays, wasted resources, and lost development opportunities.

Additionally, lax real estate market oversight in Khanh Hoa allowed businesses to operate without proper permits, with uncontrolled deposit and reservation transactions and insufficient penalties. Regulations for real estate brokerage, particularly freelance brokers, are also lacking.

"Governmental oversight failures contributed to these violations," investigators concluded.

Thanh Lam