Chinh, 51, former chairman of the Board of Directors of Housing Development and Trading Joint Stock Company (HDTC); Huynh The Nang, 66, former general director of Vinafood II; and Nguyen Tho Tri, 64, former deputy general director of Vinafood II, will be tried by the Ho Chi Minh City People's Court for "violating regulations on the management and use of state assets, causing loss and waste" under Article 219 of the Penal Code, on 17/9.

Southern Food Corporation (Vinafood II) is identified as the victim in the case. 45 organizations and individuals have been summoned to participate in the trial as related persons.

Nearly 20 lawyers are involved in defending the accused, including 9 lawyers for Chinh. The trial is expected to last until 19/9.

Dinh Truong Chinh at the time of his arrest. Photo: Police provided

Dinh Truong Chinh at the time of his arrest. Photo: Police provided

Dinh Truong Chinh served as chairman of the Board of Directors of Viet Han Trading - Advertising - Construction - Real Estate Company Limited (Viet Han Company), a real estate enterprise he founded in 2006, for over 10 years. There, he gained attention for his strategy of acquiring and developing large-scale projects such as Goldmark City, earning him the nickname "real estate M&A tycoon".

After leaving Viet Han, Chinh became chairman of the Board of Directors of HDTC, a state-owned enterprise privatized in 2016. During this period, HDTC implemented numerous large urban and resettlement projects in Ho Chi Minh City, including An Phu - An Khanh, Binh Tri Dong, and Binh Trung.

Vinafood II, a wholly state-owned enterprise, was entrusted with the management of over 6,300 m2 of land and buildings at 33 Nguyen Du Street and 34, 36, and 42 Chu Manh Trinh Street, Saigon Ward (formerly Ben Nghe Ward, District 1). In 2010, after fulfilling financial obligations exceeding 766 billion VND, Vinafood II was granted a land use rights certificate by the Ho Chi Minh City People's Committee (UBND) for the purpose of constructing a hotel, office building, and commercial center.

However, between 2014 and 2015, due to financial losses, Vinafood II sought to dispose of these four properties to recover capital and repay debts.

Authorities determined that Dinh Truong Chinh, then representing Viet Han Company, took advantage of this policy, repeatedly submitting written requests to purchase Vinafood II's land.

Chinh reaped a profit of 970 billion VND just 33 days after the transfer.

To acquire the land without an auction, Chinh colluded with Huynh The Nang to implement a "capital contribution - divestment" scheme to legitimize the transfer, establish Viet Han Saigon Company, and continue the project.

After receiving approval from the competent authorities, the two parties agreed on a transfer price of 730 billion VND for the entire land area: 570 billion VND through the transfer of capital contribution and 160 billion VND corresponding to Vinafood II's divestment of its 20% stake.

On 23/12/2015, Vinafood II and Viet Han Company signed a capital contribution and transfer contract for the 6,300 m2 prime land. In the contract, Chinh committed to continuing the project.

According to the investigative agency, from the outset, Dinh Truong Chinh's motive was not to cooperate in project implementation as committed in the contract with Vinafood II, but to acquire the four properties for resale and illicit profit.

In fact, after paying Vinafood II over 730 billion VND, Chinh did not implement the project through Viet Han Saigon Company (a joint venture between Vinafood II and Viet Han Company, which he managed), but instead offered it for resale to several real estate groups for approximately 2,000 billion VND.

Just 33 days after completing the procedures, Chinh sold 99% of his stake in Viet Han Saigon (equivalent to 99% of the land value) to Winter Real Estate Joint Stock Company (a legal entity under someone else's name) for 1,683 billion VND, earning a profit of 970 billion VND.

The nearly 6,300 m2 land plot on Nguyen Du and Chu Manh Trinh streets, District 1. Photo: Quynh Tran

The nearly 6,300 m2 land plot on Nguyen Du and Chu Manh Trinh streets, District 1. Photo: Quynh Tran

The scheme to conceal profits from flipping the four properties

The procuracy determined that to conceal the resale of the four properties, Dinh Truong Chinh did not directly sign the contract but had his cousin, Hoang Ngoc Cam Hong, return from abroad to act as the signatory. He arranged for Hong to sign a contract with Viet Han Company (represented by Chinh) to acquire a 99% stake worth 792 billion VND in Viet Han Saigon Company.

Although the contract stipulated immediate payment of the entire 792 billion VND, Hong did not actually pay, as the signing was merely a formality. On that basis, on 30/1/2016, Chinh, representing Viet Han Saigon Company, completed business registration changes. On 2/2/2016, the Ho Chi Minh City Department of Planning and Investment issued an amended certificate, confirming Hong's 99% ownership, with Viet Han Company retaining 1%.

Subsequently, as arranged by Chinh, Hong transferred the 99% stake to Winter Real Estate JSC for an initial price of 1,980 billion VND, later reduced to 1,683 billion VND through a supplementary agreement.

When the 1,683 billion VND was fully transferred to the account, on 5/2/2016 and 15/2/2016, Hoang Ngoc Cam Hong made 9 payment orders, transferring 792 billion VND to Viet Han Company with the description "payment for the acquisition of 99% stake", to legitimize the previous contract.

Hong withdrew the remaining difference and transferred it to accounts designated by Chinh. This money was then transferred to Viet Han Company and Chinh's personal account, through his use of nominees to purchase shares in Housing Development and Trading Company.

Thus, just 33 days after spending 730 billion VND to acquire the four Vinafood II properties, the resale to Winter Real Estate JSC yielded a profit of 970 billion VND for Dinh Truong Chinh and Viet Han Company.

Authorities served the indictment on Dinh Truong Chinh (right) in late 2023. Photo: Police provided

Authorities served the indictment on Dinh Truong Chinh (right) in late 2023. Photo: Police provided

According to the procuracy, the land in question is state property and should have been sold through a public auction. If the government hadn't authorized the transfer, it shouldn't have occurred. However, due to the prior agreement with Huynh The Nang, the transfer was carried out illegally through a capital contribution-divestment scheme, causing a loss of 970 billion VND in state assets. Chinh is accused of bearing criminal responsibility for this loss.

Huynh The Nang was aware that the land was state property and required an auction, yet still conspired with Dinh Truong Chinh to transfer it illegally through the capital contribution-divestment method. Nang admitted to the wrongdoing as stated in the indictment.

The investigative agency determined that his actions stemmed from a misunderstanding of the law and superior directives, with no evidence suggesting he benefited.

Nguyen Tho Tri is accused of intentionally aiding Nang in legitimizing the transfer procedures. Similarly, authorities believe Tri's violation resulted from a misunderstanding of the law and superior directives, with no evidence of personal gain from the case.

Hai Duyen