Last week, the appeal hearing for the Phuc Son Group's land violations and fraud case, involving 63 hectares of coastal land in Nha Trang, largely focused on a core issue: how to compensate land buyers.

A total of 385 individuals had paid 7,000 billion VND to Phuc Son to purchase land in this project, despite the land having been illegally allocated. Identified as victims, they wish to receive the land rather than monetary compensation, as ruled by the first-instance court.

"One billion VND in 2016 cannot remain one billion VND in 2026," one victim stated, expressing a common sentiment.

However, due to legal complications, discrepancies in land price valuation, and misconduct by former Khanh Hoa province leaders, the project largely remains deserted.

The court hearing was previously adjourned for three days to allow Nguyen Van Hau, the company's chairman, to renegotiate with the victims.

The court resumed on the morning of 3/7. While the details and outcome of the negotiations were not fully disclosed, Hau stated during subsequent arguments that 85 victims had agreed to his proposal. They had signed written agreements with Phuc Son Company to receive compensation and continue commitments to acquire the land.

Immediately after, a woman representing another group of victims expressed her surprise, stating she was unaware of any such agreement. She conveyed skepticism following "unjust" experiences when signing land purchase contracts with Phuc Son in 2016.

She cited that the old contracts were one-sided, primarily imposing penalties on buyers: if a customer violated any clause, they would immediately lose their right to the land and only receive a refund of the principal amount paid.

The contracts lacked any clauses specifying responsibility or penalties for Phuc Son Company if the enterprise failed to fulfill its commitment to deliver the land.

This raised concerns that if a new agreement were made, Phuc Son might, as before, find "countless reasons" to delay without incurring any financial losses.

Hau 'Phao' commits to three times compensation if he defaults

In response to the strong reactions from customers in court, Hau promptly made a commitment: to compensate 300% if he fails to deliver.

The Phuc Son chairman declared that if he "fails" or changes his mind, and does not hand over the land to customers as agreed, the company will compensate 300% of the total amount customers have paid.

"This figure stems from my conscience, ensuring fairness and transparency," Hau stated, affirming that he chose the "difficult path" over the "easy path" to stand by the people until the end.

To realize this 300% commitment, Hau asserted that the company would mobilize all resources to continue implementing the project. The 3,200 billion VND currently managed by the company will be directed towards completing infrastructure for BT projects with the local authority, to soon meet the conditions for handing over project land to customers.

The Phuc Son chairman said he is willing to liquidate, divest, or sell everything he owns, "without regret, keeping nothing for myself."

Instead of paying through Phuc Son Company as before, defendant Hau proposed that customers pay directly into the Khanh Hoa provincial budget account. Phuc Son will not collect any money from the difference.

Customers will only pay after an official tax notice and when the new land price is approved by competent authorities.

Approximately 150 victims attended the court hearing. Photo: Danh Lam

Victims: Request court to 'take charge'

Despite the unexpected turn in the compensation agreement, victims' opinions remain divided. Some support and trust Hau to continue the project, hoping to receive their land.

However, others still believe his promise is too fragile.

They are willing to cooperate, even pay additional money based on the province's new land price to receive their land. This is conditional on their rights being secured by highly binding legal documents.

Accordingly, the old contract with Phuc Son must be cancelled and new agreements signed, with the 300% penalty clause clearly stated and legally binding. They hope the Trial Panel will recognize these agreements as a basis for enforcement.

Some lawyers representing the victims questioned how defendant Hau, who is currently prosecuted and has restricted civil rights, could "make such large financial commitments" for the future. They suggested that the new General Director of Phuc Son should be the one to make direct commitments in court.

In his final statement, Hau again asked the Trial Panel for "one or two more days" to negotiate with the remaining victims.

Two former major generals – for whom the Procuracy proposed converting their two years and six months prison sentences to suspended sentences – expressed gratitude and asked the court for approval. Their wish is "to be free to see Nha Trang renewed" and "to educate their children and grandchildren about law observance."

The court will announce its verdict on the afternoon of 6/7.